How does blockchain technology bring AAA games to Metaverse

Irreplaceable token-based projects like Loot and The N Project have helped to soar Metaverse’s interest to record highs, once again raising hopes that the blockchain will eventually break through the public. Will it, or is history destined to repeat itself? The problem is that the things that attract the public’s imagination are exactly the same things that will ultimately reduce the performance of the underlying platform and increase the barriers to entry. In this article, I will explore the basic issues that cause this dynamic, with the goal of helping solve them once and for all.

The fundamental problem is that traditional blockchain technology—especially Ethereum—introduces huge barriers to entry and hinders Metaverse’s ability to join new users. However, these problems will become more serious because network users cannot be allowed to statically price their network usage.

Apes and penguins are expensive

The fees required to use the popular NFT market can be a potential problem because projects often impose these fees on users, and users are often unrealistic for their profit potential. A quick glance at Etherscan reveals that the transaction fees paid for each project are numbingly high. Users of projects such as Bored Ape Yacht Club and Pudgy Penguins paid 106.7 and 111.4 ether (Ethereum) To interact with their smart contracts respectively. Together, users of these two projects only need to pay nearly $1 million in transaction fees!

Axie Infinity, really based on NFT?

But the problem is: these projects are not actually NFT-based games! In Axie Infinity, players can fight and breed small creatures, which can then be sold or rented out to other players, precisely because they are implemented as NFTs. This is what makes Axie Infinity a great example of a truly NFT-based game. The problem is that the more the game actually utilizes the benefits of NFT and blockchain-based assets, the more ETH fees users must pay.

The transaction and reproduction aspects of these games will generate transaction fees on the Ethereum blockchain. Axie Infinity has paid more than 15,000 ETH in transaction fees, roughly equivalent to more than $60,000,000! This is money that developers could use to improve their products, but more importantly, users can spend this money to buy more digital assets from Axie Infinity and other game developers.

Catch-22 for new users and publishers

Many new users attracted by the NFT boom go directly to markets such as OpenSea to list their own NFTs. In an ideal world, this would be a great opportunity to join another blockchain advocate by providing a great user experience. Unfortunately, the transaction fees associated with simply listing the items for sale on OpenSea are now about 0.1 ETH, or about $400. This is not the kind of user experience that makes people think they are using some future technology!

These ridiculous fees not only hurt new users trying to understand this blockchain boom, but also discourage large corporate entities from building on blockchain platforms. If end consumers of their products must pay more than $100 to trade their in-game weapon skins, why would large video game publishers build NFT interoperability in their video games? Of course, no consumer will be excited about in-game NFT assets that have higher transaction costs than the base game.

Even if large video game publishers wish to pay these blockchain transaction fees for their player base, these fees will still be very expensive and will be proportional to the life cycle of the game. In fact, as the game replay value increases, the game publisher will be punished! Given these shortcomings of current blockchain transaction pricing, it is not surprising that we have not seen video game developers and publishers take the lead in using blockchain to digitize in-game assets.

No fee blockchain

Obviously, the current NFT-based games on the traditional blockchain have major problems. This is largely due to their transaction pricing mechanism hindering the adoption of new users and discouraging video game publishers from implementing NFT assets into their games. Unfortunately, we have not come close to seeing AAA video games that use blockchain to track the ownership of game assets. It is too high for consumers or publishers to bear the cost of conducting transactions on a fee-based blockchain.

However, there is hope. It is possible to eliminate costs from the user experience of the blockchain. Steem blockchain (where The famous fork to Hive To prevent Justin Sun’s hostile acquisition) has been operating in a free mode since its establishment in 2016. Splinterlands is one of the most successful blockchain-based games and has been using the free attributes of Steem and now Hive to achieve spectacular results.

related: Effortlessly is the only way to achieve blockchain adoption

The essence of the solution Include In these blockchains, a token derivative or “property” is introduced, which is used to “pay” transaction fees, rather than gas like Ethereum, and can be “delegated” from one user (such as a developer) to another A user (like a player).

Using token derivatives to pay for transaction costs allows game developers to statically price their network usage over time. If this sounds a bit confusing, don’t worry; I will explain.

Consider if Axie Infinity is built on a free blockchain that utilizes such token derivatives, rather than forcing users to spend their balance. If this is the case, developers can purchase a given amount of local currency proportional to the network bandwidth required by the game, and then delegate network resources to new users.

Drive growth

First, it will allow new users receiving delegated resources to exchange their Axies and interact with smart contracts in the game to achieve zero transaction fees. This will allow the game to naturally expand its player base because players will not be intimidated by the cost of playing the game. This will lower the barriers to entry, introduce more new players into the ecosystem and drive demand for in-game assets.

This fee structure allows game publishers and developers to pay a one-time fixed cost for consistent network usage. On Ethereum, you need to pay for each transaction, which is a big problem for games such as Axie Infinity-as of November 2021, it is approximately $60,000,000. Of course, what happens when users run out of token derivatives? Wouldn’t they return to where they started? Well, if it regenerates over time, it won’t!

related: Navigating the NFT minefield: should be easy for first-time buyers

Because we are talking about the attributes of the token, not the token itself, it can be programmed in any way we want without major economic consequences.The purpose of this property is not to exchange value, but to Incentivize network usage, And can be designed accordingly. If we don’t want users to be forced to buy more and more tokens, then all we need to do is to regenerate token attributes over time, which will also provide us with the static pricing and theoretically unlimited we are looking for Of transactions for users! Therefore, games like Axie Infinity only require a one-time purchase and no longer need to pay (or make the player pay the basic salary) transaction fees.

Resources can be continuously entrusted from publishers or developers to active players or user groups, providing players with free smart contract interaction, and fundamentally solving the inefficiency problem of $60,000,000 in the NFT game space.

The current fee transaction structure poses a direct threat to mass adoption. In addition to creating the first consumer-friendly blockchain at Koinos Group, we are also working to find a solution that enables large organizations to better price the costs associated with adopting this cutting-edge technology.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Thomas Clement Koinos Group is a blockchain development company dedicated to helping people use blockchain to benefit mankind.