In Web3 gaming, blockchain infrastructures play a key role. All the gaming assets – NFTs – and tokens operate on a blockchain network, which naturally poses a challenge for game developers who decide to go Web3. Which approach to choose? Is it more convenient to build on a single chain or implement multiple chains? Or does it make more sense to utilize bridging mechanisms in cross-chain development? This article delves into the differences, benefits and pitfalls of single, cross, and multi-chain development approach to Web3 games. 

Blockchain Interoperability Challenges 

In the world of blockchain, interoperability refers to the ability of different networks to communicate and exchange data with each other. This is crucial for a decentralized ecosystem, as it allows users to seamlessly transfer data between various networks.

Previously, the Ethereum network dominated the blockchain landscape, holding over 95% of the total value locked (TVL). However, moving data to other networks was a cumbersome and time-consuming process. This lack of interoperability was a significant hurdle for the growth of the decentralized ecosystem.

Thankfully, advancements in blockchain technology have led to the development of bridges and other interoperability solutions. These solutions are paving the way for a more interconnected and user-friendly blockchain landscape. 

The long-time domination of Ethereum network is being disrupted by the in-flow of users to a multitude of other chains. As of May 2024, Polygon boasts 1,3m daily active users (DAU), followed by BNB Chain (1,1m DAU), Solana (0,9m DAU) and Arbitrum (0,68m DAU), leaving Ethereum with a modest count of mere 380k DAU, according to Token Terminal.

Quite naturally, this emerging network diversity tempts Web3 game developers to embrace a multi-chain attitude. Why dedicate a game to a single chain, when you can funnel users from across a plethora of different blockchain networks? Well, going multi-chain doesn’t go without certain drawbacks. 

Single-chain game development

The strong preference for single-chain applications is more than just a statistic; it highlights a significant challenge within the blockchain community. Although single-chain applications may seem simpler and more familiar initially, they come with inherent issues that can impede their long-term viability and success.

While single-chain applications seem like a straightforward choice at first, they come with limitations that can hinder long-term success. Here’s why:

• Traffic Jams and High Costs: Popular blockchains like Ethereum get congested, leading to slow transactions and expensive fees. This frustrates users and hurts your game’s competitiveness.

• Stuck in One Lane: If your chosen blockchain has problems, your game suffers too. Security issues, governance changes, or even technical setbacks can cripple your game’s functionality. Remember the Solana network outage in 2022? Not something you want to depend on.

• Limited Growth Potential:  As your game gains users, a single blockchain might struggle to handle the increased traffic. This scalability bottleneck can stunt your game’s growth and deter new users seeking a smooth experience.

Cross-chain development 

In essence, cross-chain interoperability allows blockchains to connect and interact. This enables the transfer of assets between various blockchain networks, eliminating the need for centralized exchanges. By fostering communication and data exchange across blockchains, interoperability paves the way for a more unified blockchain ecosystem.

Imagine a game world where your prized sword isn’t locked on a single blockchain, but can traverse freely between them. This is the power of cross-chain gaming, where in-game assets transcend blockchain limitations. Think of it like a universal adapter for your digital treasures, allowing them to be used across different gaming environments. Bridges act as the facilitators in this scenario, enabling seamless movement of assets between blockchains. This paves the way for a more unified Web3 gaming experience, shattering the barriers that once kept players isolated.

Multi-chain development 

Now, let’s delve into the realm of multi-chain gaming. This concept takes things a step further, resembling a futuristic gaming console where you can access the same game across multiple blockchains. Just like playing your favorite game across various PlayStation generations without needing to swap discs, multichain allows you to experience the same game world on different blockchains, seamlessly switching between them. Think of it as the evolution of cross-chain, where the entire game environment transcends individual blockchains.

Going Multi-Chain is a Double-Edged Sword 

While the idea of reaching players across multiple blockchains might seem appealing, there’s a dark side to the multi-chain approach in Web3 gaming. For players, it translates to confusion: juggling various wallets, tokens, and asset acquisition methods. This fragmentation creates a steep learning curve and hinders the growth of a unified, vibrant gaming community.

For developers, the road gets even bumpier. Bridging assets between chains introduces technical complexities and exposes games to potential hacks. Maintaining these bridges requires specialized blockchain developers, a hot commodity with a hefty price tag. The additional burden of managing multiple codebases further slows down development cycles.

In conclusion, the multi-chain approach in Web3 gaming presents a double-edged sword. While it promises wider reach, the technical hurdles and fragmented experience for both players and developers raise questions about its long-term viability. Focusing on a single blockchain might be a more strategic approach for a smoother and more secure gaming experience.

For Players:

• Confusion & Friction: Multiple wallets, tokens, and asset acquisition methods create a steep learning curve.
• Fragmented Experience: Isolated communities and limited liquidity hinder the network effect.

For Developers:

• Technical Challenges: Bridging complexities, wrapped token limitations, and non-EVM compatibility create headaches.
• Increased Costs & Risks: Maintaining bridges across chains requires specialized talent and exposes games to bridge hacks.

Web3 Games’ Success Ratio By Chain

Although tempting, multichain development is not all glitter and glitz, as suggested by the success-failure ratio. Right, Web3 games are notorious for volatile life-cycles, sudden shut-downs and discontinuations. Last year’s report by Big Blockchain Games List reveals that multichain games exhibited the same discontinuation percentage as games built on BNB Chain – a leader in discontinued games. 

Over 30% of all listed games (407 out of 1322) are now discontinued. Notably, 17% of discontinued H2 games were multichain, while single-chain discontinuations were led by BNB (11%), Polygon (10%), Ethereum (6%), and Solana/Sui (6% each). The high-profile closures include Blankos Block Party (relaunching on mobile) and Goals (abandoning blockchain). Funding and market conditions were most commonly cited for discontinuations, though many projects simply went inactive.

Conclusion 

In conclusion, choosing the right blockchain approach for your Web3 game is crucial. While single-chain offers simplicity and security, it may limit your audience and scalability. Cross-chain provides more flexibility for in-game assets, but introduces complexities and potential risks. Multi-chain development boasts the widest reach but comes with a steep learning curve for players and significant development challenges. Carefully consider your target audience, technical expertise, and long-term goals to determine the optimal blockchain strategy for your Web3 game’s success. The future of Web3 gaming might lie in a hybrid approach, leveraging the strengths of each strategy while mitigating their weaknesses.