Network
Launch Date
Consensus
Note
Sepolia
Oct 2021
PoW
Like-for-like representation of Ethereum
Görli
Jan 2019
PoA
Proof-of-Authority
Kiln
Mar 2022
PoS
Post-Merge (for ETH2), shadow fork of the mainnet
Kintsugi
Dec 2021
PoS
DEPRECATED, use Kiln; post-Merge (for ETH2)
Ropsten
Nov 2016
PoW
DEPRECATED, use Sepolia; the Merge to happen on Jun 8, 2022
Rinkeby
Apr 2017
PoA
DEPRECATED, use Görli and Görli Faucet
Kovan
Mar 2017
PoA
DEPRECATED, use Sepolia or Görli
List of active and deprecated Ethereum testnets, including Kintsugi.
Features
Optimistic rollup 
ZK-rollup 
Proof
Uses fraud proofs to prove transaction validity. 
Uses validity (zero-knowledge) proofs to prove transaction validity. 
Capital efficiency
Requires waiting through a 1-week delay (dispute period) before withdrawing funds. 
Users can withdraw funds immediately because validity proofs provide incontrovertible evidence of the authenticity of off-chain transactions. 
Data compression
Publishes full transaction data as calldata to Ethereum Mainnet, which increases rollup costs. 
Doesn't need to publish transaction data on Ethereum because ZK-SNARKs and ZK-STARKs already guarantee the accuracy of the rollup state. 
EVM compatibility
Uses a simulation of the Ethereum Virtual Machine (EVM), which allows it to run arbitrary logic and support smart contracts. 
Doesn't widely support EVM computation, although a few EVM-compatible ZK-rollups have appeared. 
Rollup costs
Reduces costs since it publishes minimal data on Ethereum and doesn't have to post proofs for transactions, except in special circumstances. 
Faces higher overhead from costs involved in generating and verifying proofs for every transaction block. ZK proofs require specialized, expensive hardware to create and have high on-chain verification costs. 
Trust assumptions
Doesn't require a trusted setup. 
Requires a trusted setup to work. 
Liveness requirements
Verifiers are needed to keep tabs on the actual rollup state and the one referenced in the state root to detect fraud. 
Users don't need someone to watch the L2 chain to detect fraud. 
Security properties 
Relies on cryptoeconomic incentives to assure users of rollup security. 
Relies on cryptographic guarantees for security. 
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Web3 Gaming
NFT GAMING COMPARISON

What are the benefits and tradeoffs of NFT gaming vs. web2 gaming?

Explore 5 Benefits and 5 Tradeoffs of NFT Games Before You Start Playing NFT Games
Last Updated:
March 29, 2023
Table of Contents
Table of Contents
Table of Contents

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NFT gaming is a popular use case for blockchain technology because it offers players more ownership over their in-game assets, and enables game developers to incorporate more interesting mechanics and economics into their game.

Before choosing a web3 game to play, explore the benefits and tradeoffs of playing NFT games.

5 Benefits of NFT Gaming

NFT games have introduced unrivaled benefits to gaming which is evident by their explosive growth in recent years. Here are some benefits NFT games have introduced or improved to the gaming industry: ownership, scarcity, trading, earning potential, and composability. 

1. Ownership of NFTs

NFTs allow players to truly own in-game assets, such as characters, weapons, and collectibles, rather than simply having a license to use them. Players of NFT games now get to store their in-game assets in their web3 wallets rather than having them locked in the game itself.

2. Scarcity of NFTs

NFTs can be used to create limited edition items, adding value and rarity to in-game assets. Players can enjoy a higher valuation for obtaining in-game assets, or incentive deeper levels of engagement from players.

3. Trading of NFTs

NFTs enable players to trade and sell in-game assets on various gaming marketplaces, potentially creating new revenue streams for game developers through gaming NFT royalties and enabling players to earn money from their in-game achievements.

While trading in-game assets and gamer accounts has been done throughout gaming’s history, most trading has been done without controls or player protections.

Having a marketplace built on the blockchain gives players a safe and trusted venue for trading in-game assets.

4. Earning potential

Unlike traditional gaming rewards which can be exchanged for in-game assets, NFT games create pathways to convert in-game assets into legal tender.

For example, an NFT can be sold in the game’s marketplace for the game’s native currency.

Then, that currency can be swapped for a stablecoin on a decentralized exchange like Uniswap.

5. Game Composability

The composability of NFT games allows gaming developers to adapt or build on top of the existing blockchain games, aiding them to unlock the best use cases efficiently.

Unlike traditional games, in-game NFTs can be used across multiple games or metaverse environments because they share the same standards (e.g. ERC721).

5 Tradeoffs of NFT Gaming

With NFT gaming’s newness, there are some trade-offs including scalability, regulation, interoperability, volatility, and complexity.

1. Scalability

As NFT games gain popularity, the blockchain infrastructure that supports them may struggle to keep up with the increased demand for transactions, leading to slower performance and higher fees.

One solution to scalability is using an appchain, or a blockchain that is exclusively designed for the use of a single application. Appchains offer games scalability while removing congestion from public blockchains like Ethereum.

One example of a web3 game that uses an appchain is Axie Infinity which uses Ronin Network, an application-specific blockchain created specifically for Axie Infinity.

2. Lack of Regulation

As NFTs and blockchain technology are relatively new, there is currently a lack of regulation in the NFT gaming space, which can create uncertainty and risk for investors and gamers.

Before playing a web3 game, make sure you are following your local rules and regulations.

3. Lack of Interoperability Across Blockchains

NFTs are typically specific to a particular blockchain, which can limit the ability of players to use their assets across different games or platforms of different blockchains.

While bridges and cross-chain messaging protocols exist, they are still relatively young, and we have not seen extensive cross-chain gaming solutions.

4. High Volatility

As the NFT gaming space evolves, the games players choose to play, and the relative value of the NFTs acquired in each game will change. Like cryptocurrency, the value of NFTs can be highly volatile, making it difficult for players to predict the value of their assets over time. 

5. Complexity

Understanding the underlying blockchain technology and navigating the various aspects of an NFT game such as creating a wallet, depositing cryptocurrency, buying NFTs, managing in-game assets, and securing your wallet can be daunting for those unfamiliar with the NFT gaming space.

The complexity of starting to play an NFT game is a steep learning curve and is often cited as a major obstacle that hinders the growth and widespread adoption of blockchain-based games.

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Web3 Gaming
NFT GAMING COMPARISON

What is the difference between NFT gaming vs. Web2 gaming?

Explore 5 Benefits and 5 Tradeoffs of NFT Games Before You Start Playing NFT Games
Last Updated:
March 29, 2023
Last Updated:
March 16, 2023
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Table of Contents

NFT gaming is a popular use case for blockchain technology because it offers players more ownership over their in-game assets, and enables game developers to incorporate more interesting mechanics and economics into their game.

Before choosing a web3 game to play, explore the benefits and tradeoffs of playing NFT games.

5 Benefits of NFT Gaming

NFT games have introduced unrivaled benefits to gaming which is evident by their explosive growth in recent years. Here are some benefits NFT games have introduced or improved to the gaming industry: ownership, scarcity, trading, earning potential, and composability. 

1. Ownership of NFTs

NFTs allow players to truly own in-game assets, such as characters, weapons, and collectibles, rather than simply having a license to use them. Players of NFT games now get to store their in-game assets in their web3 wallets rather than having them locked in the game itself.

2. Scarcity of NFTs

NFTs can be used to create limited edition items, adding value and rarity to in-game assets. Players can enjoy a higher valuation for obtaining in-game assets, or incentive deeper levels of engagement from players.

3. Trading of NFTs

NFTs enable players to trade and sell in-game assets on various gaming marketplaces, potentially creating new revenue streams for game developers through gaming NFT royalties and enabling players to earn money from their in-game achievements.

While trading in-game assets and gamer accounts has been done throughout gaming’s history, most trading has been done without controls or player protections.

Having a marketplace built on the blockchain gives players a safe and trusted venue for trading in-game assets.

4. Earning potential

Unlike traditional gaming rewards which can be exchanged for in-game assets, NFT games create pathways to convert in-game assets into legal tender.

For example, an NFT can be sold in the game’s marketplace for the game’s native currency.

Then, that currency can be swapped for a stablecoin on a decentralized exchange like Uniswap.

5. Game Composability

The composability of NFT games allows gaming developers to adapt or build on top of the existing blockchain games, aiding them to unlock the best use cases efficiently.

Unlike traditional games, in-game NFTs can be used across multiple games or metaverse environments because they share the same standards (e.g. ERC721).

5 Tradeoffs of NFT Gaming

With NFT gaming’s newness, there are some trade-offs including scalability, regulation, interoperability, volatility, and complexity.

1. Scalability

As NFT games gain popularity, the blockchain infrastructure that supports them may struggle to keep up with the increased demand for transactions, leading to slower performance and higher fees.

One solution to scalability is using an appchain, or a blockchain that is exclusively designed for the use of a single application. Appchains offer games scalability while removing congestion from public blockchains like Ethereum.

One example of a web3 game that uses an appchain is Axie Infinity which uses Ronin Network, an application-specific blockchain created specifically for Axie Infinity.

2. Lack of Regulation

As NFTs and blockchain technology are relatively new, there is currently a lack of regulation in the NFT gaming space, which can create uncertainty and risk for investors and gamers.

Before playing a web3 game, make sure you are following your local rules and regulations.

3. Lack of Interoperability Across Blockchains

NFTs are typically specific to a particular blockchain, which can limit the ability of players to use their assets across different games or platforms of different blockchains.

While bridges and cross-chain messaging protocols exist, they are still relatively young, and we have not seen extensive cross-chain gaming solutions.

4. High Volatility

As the NFT gaming space evolves, the games players choose to play, and the relative value of the NFTs acquired in each game will change. Like cryptocurrency, the value of NFTs can be highly volatile, making it difficult for players to predict the value of their assets over time. 

5. Complexity

Understanding the underlying blockchain technology and navigating the various aspects of an NFT game such as creating a wallet, depositing cryptocurrency, buying NFTs, managing in-game assets, and securing your wallet can be daunting for those unfamiliar with the NFT gaming space.

The complexity of starting to play an NFT game is a steep learning curve and is often cited as a major obstacle that hinders the growth and widespread adoption of blockchain-based games.

NFT gaming is a popular use case for blockchain technology because it offers players more ownership over their in-game assets, and enables game developers to incorporate more interesting mechanics and economics into their game.

Before choosing a web3 game to play, explore the benefits and tradeoffs of playing NFT games.

5 Benefits of NFT Gaming

NFT games have introduced unrivaled benefits to gaming which is evident by their explosive growth in recent years. Here are some benefits NFT games have introduced or improved to the gaming industry: ownership, scarcity, trading, earning potential, and composability. 

1. Ownership of NFTs

NFTs allow players to truly own in-game assets, such as characters, weapons, and collectibles, rather than simply having a license to use them. Players of NFT games now get to store their in-game assets in their web3 wallets rather than having them locked in the game itself.

2. Scarcity of NFTs

NFTs can be used to create limited edition items, adding value and rarity to in-game assets. Players can enjoy a higher valuation for obtaining in-game assets, or incentive deeper levels of engagement from players.

3. Trading of NFTs

NFTs enable players to trade and sell in-game assets on various gaming marketplaces, potentially creating new revenue streams for game developers through gaming NFT royalties and enabling players to earn money from their in-game achievements.

While trading in-game assets and gamer accounts has been done throughout gaming’s history, most trading has been done without controls or player protections.

Having a marketplace built on the blockchain gives players a safe and trusted venue for trading in-game assets.

4. Earning potential

Unlike traditional gaming rewards which can be exchanged for in-game assets, NFT games create pathways to convert in-game assets into legal tender.

For example, an NFT can be sold in the game’s marketplace for the game’s native currency.

Then, that currency can be swapped for a stablecoin on a decentralized exchange like Uniswap.

5. Game Composability

The composability of NFT games allows gaming developers to adapt or build on top of the existing blockchain games, aiding them to unlock the best use cases efficiently.

Unlike traditional games, in-game NFTs can be used across multiple games or metaverse environments because they share the same standards (e.g. ERC721).

5 Tradeoffs of NFT Gaming

With NFT gaming’s newness, there are some trade-offs including scalability, regulation, interoperability, volatility, and complexity.

1. Scalability

As NFT games gain popularity, the blockchain infrastructure that supports them may struggle to keep up with the increased demand for transactions, leading to slower performance and higher fees.

One solution to scalability is using an appchain, or a blockchain that is exclusively designed for the use of a single application. Appchains offer games scalability while removing congestion from public blockchains like Ethereum.

One example of a web3 game that uses an appchain is Axie Infinity which uses Ronin Network, an application-specific blockchain created specifically for Axie Infinity.

2. Lack of Regulation

As NFTs and blockchain technology are relatively new, there is currently a lack of regulation in the NFT gaming space, which can create uncertainty and risk for investors and gamers.

Before playing a web3 game, make sure you are following your local rules and regulations.

3. Lack of Interoperability Across Blockchains

NFTs are typically specific to a particular blockchain, which can limit the ability of players to use their assets across different games or platforms of different blockchains.

While bridges and cross-chain messaging protocols exist, they are still relatively young, and we have not seen extensive cross-chain gaming solutions.

4. High Volatility

As the NFT gaming space evolves, the games players choose to play, and the relative value of the NFTs acquired in each game will change. Like cryptocurrency, the value of NFTs can be highly volatile, making it difficult for players to predict the value of their assets over time. 

5. Complexity

Understanding the underlying blockchain technology and navigating the various aspects of an NFT game such as creating a wallet, depositing cryptocurrency, buying NFTs, managing in-game assets, and securing your wallet can be daunting for those unfamiliar with the NFT gaming space.

The complexity of starting to play an NFT game is a steep learning curve and is often cited as a major obstacle that hinders the growth and widespread adoption of blockchain-based games.

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