Original author: Heimi from the White Ze Research Institute
Some early Web 3 games (GameFi) have been widely criticized for their speculative nature, "playing the game is not fun because they focus too much on profitability," and some games resemble Ponzi schemes, with revenue depending on attracting new players to buy NFTs or tokens. The failures of these early Web 3 games sounded the alarm for developers who are focused on quick profits, emphasizing the importance of establishing a "good gameplay + sustainable incentives" model. With the arrival of the crypto market winter, the Web 3 gaming track has entered a deep bear market state, manifested in the short lifespan of projects and the quick loss of users.
However, at the recently concluded Japan Blockchain Week, Oasys, a public chain focused on gaming, injected new vitality into the Web 3 gaming track. At the "Oasys Special Event," Oasys announced partnerships with many gaming giants and allowed us to witness the charm of games being developed on this network. Com2uS announced that their AAA blockchain game "Summoners War: Chronicles" will be launched on Oasys, and SEGA and Ubisoft are developing their first blockchain games based on Oasys. SEGA will collaborate with blockchain game development company Double Jump Tokyo to develop a card strategy game called "Sangokushi Taisen" based on its classic IP, while Ubisoft's first blockchain game is "Champions Tactics: Grimoria Chronicles."
In fact, in the current sluggish crypto market, facing regulatory resistance, and with several Web 2 companies "quitting the game," SEGA and Ubisoft's development of their first blockchain games on the Oasys network marks their full entry into the Web 3 field after several years of exploration and trial and error. Their adoption also serves as a huge driving force for Web 3 and is the best proof that Web 3 games will continue to exist.
Ubisoft: Failed NFT sales, but ultimately enters the blockchain gaming industry
Ubisoft, without much introduction, is a well-known video game publisher based in France. They have developed many popular games such as the "Far Cry" series, the "Assassin's Creed" series, the "Ghost Recon" series, "Rainbow Six Siege," the "Watch Dogs" series, and the "Call of Duty" series, among others.
In order to seek innovation, Ubisoft took a bold step and ventured into the Web 3 field, which is the hottest area for NFTs in 2021, to conduct an "experiment" for the PC version of Ghost Recon: Breakpoint by introducing virtual items in the form of NFTs based on the Tezos network. However, the results did not meet expectations, as only 15 virtual items were claimed, with a total transaction volume on the NFT market of less than $400.
This "experiment" by Ubisoft not only failed to resonate with gamers, but even NFT enthusiasts seemed uninterested.
When it comes to gamers, hardly anyone cares about NFTs. On the Ghost Recon: Breakpoint subreddit, most gamers have a negative attitude towards NFTs, leaving only a small group of players interested in acquiring them. However, two out of the three NFTs require players to spend 100 hours and 600 hours grinding in the game to claim them, so it's clear that even at the end of the event, only a few people were able to claim these two NFTs.
As for NFT enthusiasts, there is a simple reason explaining their lack of interest. When we can find countless investment opportunities in the entire crypto market, why would we be interested in a virtual helmet that requires playing the game for 600 hours? Aren't the "monkeys" with meme attributes and rich use cases more appealing than this helmet?
Facing this failure, Ubisoft did not back down. They continued to delve into the Web 3 field by investing in blockchain game development company Animoca Brands and blockchain game project Frontier. They also released multiple NFTs once again, covering Ubisoft's classic IPs, Rabbids and Assassin's Creed.
Returning to Ubisoft's recently announced blockchain game, Champions Tactics: Grimoria Chronicles, it is a tactical RPG game based on the Oasys network, targeting PC players. From the description, Ubisoft refers to this game as an "experiment" rather than a "blockchain game," which may be a manifestation of their "survival instinct" to avoid scaring away traditional gamers. Detailed game information, release date, and NFT information have not been announced yet, but there is an impressive trailer and a polarized comment section worth checking out. (https://www.youtube.com/watch?v=sKPixIolnYw&feature=youtu.be)
What's interesting is that there may be an airdrop for OGs when the game is released.
And, the smartest VC in the industry is paying attention.
As a gaming giant, it's not hard to guess that Ubisoft's universe will surely involve the development of Web 3 games. This is reflected in their report "Vision for Blockchain" released in 2021:
"Blockchain technology is a means to return games to communities, making the time players spend and the items they purchase equal to the value they contribute to the game. Our position is that integrating blockchain into games in a wise manner is the only way to achieve a fairer, more player-centric path."
But whether "Champions Tactics: Grimoria Chronicles" can truly realize their vision can only be discovered after the game is released.
Sega: Bringing New Life to Old IPs
Sega is a game development company headquartered in Japan and is a force to be reckoned with in the gaming industry. Their popular game series include "Sonic the Hedgehog" (with global sales exceeding 1.5 billion copies), "Yakuza," "Phantasy Star," and "Virtua Fighter," among others.
Like Ubisoft, Sega is no stranger to Web 3.
As early as the beginning of 2022, Sega registered the trademark "SEGA NFT," indicating their intention towards NFTs and blockchain technology for over a year. At the Game.com 2022 gaming expo, Sega once again expressed their interest in blockchain.
In May of this year, Sega launched their first NFT on the Oasy marketplace, which is operated by Oasys Network, with their classic IP "Virtua Fighter" as the theme.
As Sega's first blockchain game, "Sangokushi Taisen" is not a new IP but a Web 3 remastered version of a Web 2 IP. This game is very popular in the gaming community, especially in Japan.
With card strategy games like "Gods Unchained" becoming increasingly popular in the cryptocurrency industry, "Three Kingdoms War" (Web 3 Remastered) with the same high quality and gameplay will open up a new fan base for this old IP.
According to available information, "Three Kingdoms War" (Web 3 Remastered) is a card strategy game built on the Oasys network, with duels between two players and innovative gameplay (building a deck and completing automatic battles within 3 minutes). The official trailer showcases the game's exquisite graphics. The game will be released at the end of 2023, exclusively available on PC, featuring languages such as Japanese and English (Chinese and Korean will be added in 2024).
Oasys: The Game-Specific Chain Created by Titans, an Unignorable Hurricane
Sega's "Three Kingdoms War" will be developed by Chain Game Development Company Double Jump Tokyo. For those who are not familiar, one of Double Jump Tokyo's businesses is to provide blockchain game development services for traditional game companies, and it has collaborated with several gaming giants, including Sega, Square Enix, and Bandai Namco.
Double Jump Tokyo has developed several blockchain games, the most famous of which are "My Crypto Heroes" and "My Crypto Saga". In 2018, "My Crypto Heroes" was launched on Ethereum and quickly attracted a large number of players, but Ethereum's poor user experience limited new user entry. Therefore, Double Jump Tokyo turned to develop a game-specific public chain, aiming to improve players' gaming experience, which is Oasys.
NFT's popularity reached its peak in 2021, and it also marked the beginning of game giants focusing on the Web 3 field. Although there have been hundreds of chain games launched in the past few years, players' gaming experience has not been fully optimized, and problems related to high gas fees, slow running speeds, difficulty for new users to operate, and development risks have always existed. Therefore, we can also see that after being separated from Double Jump Tokyo, the new team of Oasys consists of top game developers and Web 3 companies:
Gabby Dizon: Co-founder of the Chain Games Guild YGG.
Hajime Nakatani: President and CEO of Bandai Namco.
Hironobu Ueno: CEO of Double Jump Tokyo.
Hironao Kunimitsu: Founder of Gumi and CEO of Thirdverse.
Shuji Utsumi: Executive Vice President of Sega.
Whether it is Com2uS, Sega, or the globally renowned game giant Ubisoft, it is not surprising that they adopt the Oasys network, as they are the initial validators of this network.
Compared to most game-specific public chains that have only done superficial work, Oasys has taken a different approach by improving the player experience through a modular structure of "public L1 + dedicated L2" and its own new methods.
Users don't need to pay gas fees
In theory, users don't need to pay gas fees for Oasys, as this cost will be borne by the Verse layer (explained later). Therefore, end users don't need to prepare gas fees or other initial costs to play games. Currently, many chain games require payment of gas fees and other upfront costs, which is a major barrier for regular users/Web 2 players to enter.
Fast running speed
In many existing blockchain networks, a transaction typically takes several seconds to several tens of seconds. This time lag is likely to create significant pressure for Web 2 gamers. Therefore, Oasys aims to provide a level of responsiveness comparable to Web 2, in order to give ordinary users/Web 2 gamers a smooth gaming experience.
Avoiding Developer Risks
Oasys eliminates the risks that traditional game companies with IP are concerned about.
Entering the current NFT and blockchain gaming field poses significant barriers for companies and developers with existing IP, including reputation risks (negative reputation, rumors, etc.) and IP protection. This is due to the open and permissionless nature of blockchain. As blockchain is permissionless, the current situation is that although Web 3 is attractive, it also has many fraudulent products.
Oasys overcomes the above obstacles, allowing companies that already have IP to safely enter the Web 3 field.
To achieve the above three features, we have to mention the network mechanism of Oasys. The Oasys network has three layers, each playing an important role.
dApp Layer
The layer where users use dApps.
Verse Layer
The Verse layer is the layer where developers build dApps (games, etc.). Each dApp can customize its own dedicated L2 (Optimistic rollup), or choose to use an existing L2, thus avoiding the management work of L2.
The biggest difference between Oasys' Optimistic rollup and Ethereum's Optimistic rollup is that it does not require a challenge period (time window), but is verified by validators specified by each L2. This design has advantages and disadvantages. Although it sacrifices some time to prevent verification errors, each Oasys L2 can achieve finality as soon as possible, which is the most crucial ability that blockchain games should have.
Any developer who stakes 1 million OAS (Oasys' native token) can quickly customize an L2 that meets their specific needs, and can set various parameters, such as creating L2s for different categories of games, focusing on NFT projects, or focusing on DeFi. The statement "users do not need to pay gas fees" depends on this, as developers can choose to bear the gas fees when setting parameters.
Therefore, the developer has its own dedicated L 2 and can develop games and release its own FT/NFT within it:
Assume Gas fees - optimize the player experience
Eliminate fake projects - avoid developer risks
Only build a limited number of dApps - improve operational speed
It is important to note that the current Verse layer carries centralized risks. If the developer encounters problems, reputation is threatened, or the L 2 ceases to operate, users will suffer losses.
Hub layer
The Hub layer is Oasys' L 1, compatible with EVM, and its basic purpose is to securely exchange and store highly stable data.
The Hub layer does not perform or process detailed transactions like the Verse layer. Instead, the Hub layer handles transactions and data management related to the entire Oasys ecosystem, including:
Recording and managing Rollup data of the Verse layer
Managing FT/NFT
Managing cross-chain bridges
Verse layer (all L 2) is built on top of the Hub layer, so even if each L 2 is out of service, developers can still access data from the Hub layer.
The Hub layer adopts the Proof-of-Stake (PoS) consensus algorithm, and anyone who stakes 10 million OAS can become a validator.
In terms of blockchain game development, Oasys provides developers with a high level of freedom through three innovative token standards.
Custom Tokens (vFT/vNFT)
Each developer can issue vFT/vNFT in their own L 2, and this token standard has the characteristic of only being usable in a specific L 2. Therefore, it cannot be cross-chained and cannot be used in other L 2.
As for its use case, it can be game currency (vFT) and intellectual property (vNFT). vFT serves as in-game currency and cannot be exchanged for fiat currency, it can only be used in the game. vNFT can protect the IP of NFTs, such as preventing NFTs from being used for unintended purposes or preventing counterfeits. For example, a developer can create NFTs that can only be used in their own L 2.
Interoperable Tokens (oFT/oNFT)
The oFT/oNFT tokens are created at the Hub layer and can be used throughout the Oasys ecosystem (Verse layer and Hub layer) as well as cross-chain to other chains (such as Ethereum).
This provides game developers with great flexibility. By using oFT/oNFT and vFT/vNFT simultaneously, developers can selectively expose certain in-game tokens to user groups outside of their own L2. For example, character NFTs can be vNFTs and land or items can be oNFTs.
External Tokens (exFT/exNFT)
exFT/exNFT are tokens minted on networks outside of Oasys and can be bridged to the Oasys ecosystem (Hub layer and Verse layer) through cross-chain bridges.
Oasys' Verse layer currently has 5 L2s, each of which is like a diverse mini-game ecosystem:
MCH Verse: Initially established by Double Jump Tokyo for "My Crypto Heroes," it later added other games including "My Crypto Saga," "Prompt Monsters," "Loot By Rogue," "Remonster," "Chian Colosseum Phoenix," and "Harbor Bcg."
TCG Verse: Dedicated to card games in L2, currently hosting 8 online card strategy games including "NFTWars," "Climate Guardians Clicker," "CryptoSpells," "The Nemots," "OasChoice," "Kyrie&Terra," "Eveden: Next Level Card Game," and "Lootadog."
Home Verse: Developed and operated by Double Jump Tokyo, all types of games can choose to go online on this L2. Currently, there are 8 games online, including "DimeTime," "Defend the Kingdoms," "Alkenome Monsters," "Sheepfarm in Meta-land," "Yomi Gardens," "9 Lives Arena," "Brave Frontier Heroes," and "Dark Throne."
Chain Verse: Developed and operated by ChainGardians (a DAO-driven game asset issuance platform), it accepts all independent games. Currently, there are a total of 3 games online: "ChainArena," "Voxel Worlds," and "Race 4 Sky."
Saakuru Verse: Developed and operated by AAG (a Web 3 infrastructure company), all types of dApps can be launched on this L2. Currently, only 2 mini-games, "GOGA" and "TomoOne," are online.
Conclusion
As described in the whitepaper, Oasys emphasizes the importance of user trust in L2 builders. Therefore, at this stage, we can refer to Oasys as a Web 2.5 blockchain because it compromises on the decentralization aspect of the Verse layer. However, according to the roadmap, Oasys aims to eventually become a DAO and achieve community-driven on-chain governance.
In addition, since the launch of a game requires permission from the validators in the respective L2, we can expect that the early development of the Oasys ecosystem will be slower compared to other new public chains, similar to how the early development of the Optimism ecosystem was slower than Arbitrum. Therefore, the short-term success of Oasys will depend on its ability to continuously introduce core IPs from game giants to attract more Web 3 developers and users.
However, based on the current situation, Oasys is like a newborn hurricane, sweeping through the Web 3 gaming world. Since its mainnet launch in October 2022, Oasys has released 28 chain games and established partnerships with numerous game giants. Ubisoft and SEGA's first chain games will also be built on Oasys. With more established partnerships and roadmap development, Oasys is worth long-term attention.
Sandeep Nailwal, co-founder of Polygon, once stated, "Web 3 games are one of the biggest driving forces for the mass adoption of cryptocurrencies. In the next 6-18 months, there will be some top-level games released in Web 3. In just the past year, the funding for Web 3 games exceeded $2 billion."
With the departure from the era of barbaric development, will the entrance of these "regular troops" mark the beginning of the second half for Web 3 games? Let us wait and see.
Risk Warning:
According to the "Notice on Further Preventing and Dealing with the Risks of Speculation in Virtual Currency Trading" issued by the central bank and other departments, the content of this article is only for information sharing and is not intended to promote or endorse any business or investment activities. Readers are strictly required to adhere to local laws and regulations and refrain from engaging in any illegal financial activities.
