On-Chain and Off-Chain Infrastructure for Blockchain NFTs

What’s on-chain? Which game transactions run on-chain? 

On-chain refers to data that is recorded on the blockchain, including transactions, mints, and withdrawals. In a blockchain game that tokenizes all aspects of the experience, everything is on-chain all the time. Certain game transactions are best suited for on-chain execution, such as in-game assets like virtual currency, weapons, and armor can be tokenized and stored on-chain, giving players true ownership and control over their assets. In-game asset trading can be on-chain, ensuring transactions are transparent, secure, and verifiable. 

Smart contracts can ensure that gameplay is fair and transparent, proving game results are not manipulated. Rewards and incentives can be created for players who complete certain objectives. Decentralized governance systems can also be created for games, where players have a say in the direction of the game's development. 

What’s off-chain? Which game transactions run off-chain? 

Off-chain refers to the normal cloud asset system managed by the game server. In a normal game that has no tokenized IP, everything may be off-chain. Certain game transactions are most economical to run off-chain. For instance, game logic and state updates are usually run off-chain to maintain fast-paced and seamless gameplay, especially for quick reaction games. Payments, user authentication, and game analytics are typically done off-chain to reduce the load on the blockchain network. Game updates can also be done off-chain to minimize transaction costs and provide a seamless user experience, although game developers may choose to hash and timestamp game updates on-chain for verification purposes. 

How does Stardust help with both? 

Stardust allows for a familiar and reliable game development experience while settling millions of transactions on-chain.  

Stardust’s architecture consists of two proprietary mirrored systems that are kept in sync. One is a traditional cloud game asset management system, while the other is the custodial wallet ecosystem. When the game dev sends a valid API call, that information is instantly packaged into a blockchain transaction and pushed into a node queue for settlement on-chain, when it’s available. 

Blockchain technology is revolutionizing the gaming industry, and even with some challenges to implementation, many game developers are finding innovative solutions to make it work seamlessly in their games, like Stardust. Both on-chain and off-chain transactions play an important role in blockchain gaming. Stardust offers a solution that supports both types of transactions, providing a familiar and reliable game development experience while settling millions of transactions on-chain. As the industry continues to evolve, it will be exciting to see how blockchain technology will shape the future of gaming. 

This post is commissioned by Stardust and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.