Is StarDust the future of blockchain gaming? Analysis of the project

Maciej Zieliński

14 Sep 2022
Is StarDust the future of blockchain gaming? Analysis of the project

Nowadays, every game developer should be able to succeed financially by selling their products. Stardust's mission is to increase the revenue of authors of such productions. Blockchain has created a paradigm shift in the monetization of video games, transforming games from closed-circuit microtransaction revenue to an open-world meta-economy monetized through the community. The Stardust project makes blockchain technology easily accessible to any developer. This is because it is a platform for authors to create blockchain-based games easily. Like PlayFab (a complete platform for live games with managed game services, real-time analytics and LiveOps), Stardust allows developers to easily create and manage NFTs in their games without needing blockchain code. Notably, the platform is available to everyone, from independent developers to AAA (games with the highest budgeting and promotion). Creating fast, secure, and scalable blockchain-based games is time-consuming and expensive for developers. What does this project offer, and why is it worth knowing? We write about it below!

What problems does Stardust solve? 

The most significant advantages cited by developers when building virtual worlds with the help of Stardust are that:

  • Provides developers with a solution without writing code to create and manage NFTs,
  • Stardust optimizes transactions, making blockchain-based games as fast as non-blockchain games.

What does Stardust provide? 

The Stardust project provides players with wallets powered by Fireblocks. It is a platform for storing, transferring, and settling digital assets. It helps guarantee the best gaming experience. Players are supposed to be able to buy NFTs with a credit card or cryptocurrency easily. The Stardust payment widget allows many different options when purchasing NFTs. The Stardust Dashboard makes it easy for any developer to create game snippets without writing code.

StarDust

As part of navigating Stardust, game developers can:

  • Create NFTs for their productions,
  • Observe players and their inventory,
  • Configure their store,
  • Do without creating wallets, buying cryptocurrencies, or smart contracts.

Stardust API

The Stardust API decouples blockchain from game developers, and creating assets is as simple as a few lines of code. In addition, Stardust provides: 

  • No transaction signing. 
  • No private key management. 
  • Response time of 100ms. 
  • The processing engine takes standardized JSON data and converts it into signed blockchain transactions that are processed instantly. 

This is all to provide game developers with the instant response time they need and then send and settle transactions on the blockchain. With this model and serverless architecture, millions of in-game actions can be processed simultaneously, providing big games with the speed and scalability needed to run games at total capacity. The processing engine is also completely independent of the blockchain, making it possible to process many of them simultaneously. With the Stardust API, game developers can provide trust wallets for users to log in based on username/password or social media.

Stardust payments

There are many solutions in this area - Crypto, Wyre, Ramp, etc. However, game developers need a fully integrated product that allows them to sell their NFTs directly to Fiat rather than the indirect path of Fiat -> Crypto -> NFT. With Stardust's payment widget, with just a few lines of code, developers can start accepting credit cards from Circle, Coinbase Commerce, and other currencies.

Why isn't Stardust building a blockchain? 

Stardust is focused on enabling game developers to create games faster and more efficiently using NFT. Unlike authors who focus on blockchain technology - with Stardust, they can focus 100% of their resources on producing virtual entertainment. This has made Stardust an interesting option for adding value to major development studios, both native web2 and web3. Blockchains are like operating systems - each has unique advantages, disadvantages, and costs. Starting with the scalability dilemma and native web3 user interfaces, developers must consider many new factors during the implementation process. Some productions may require faster transaction speeds, while others may require greater security and flexibility regarding data stored on the blockchain. By maintaining a blockchain-independent approach, Stardust can provide game developers with the option to choose the blockchain that best suits their gaming needs. Fantastic blockchain and scaling solutions are available today - fast, flexible, cheap and secure. Stardust's product is aimed specifically at developers. 

What are Stardust's goals? 

In order for Project Stardust to best serve game developers, certain external theses had to be adopted. Stardust's goal is to make it as easy as possible to capture, manage and trade NFTs so that developers can focus on what they do best - making great games. Amazing blockchains and above-average teams are working on some of the world's most challenging issues. Stardust, as you can see, does not intend to compete with them but mainly to cooperate and work together to make their work easier through flexible and intuitive tools.

Dark Taverns - the first Stardust game 

Dark Taverns is a free-to-play open-world MMORPG set in a fantasy environment. Players can explore the deep forest and discover mysterious creatures and items, form guilds with friends needed to fight new threats, or explore the world alone. Gamers embark on an unforgettable journey in a new virtual world they can now explore like never before. Backed by a growing 39-person development team of former Ubisoft and NCSoft employees with extensive experience in AAA games, the developer has set itself a challenging task. With the increased emphasis on player ownership, people began to look for answers to what players want to own. In the case of Dark Taverns, the game's titular tavern is the focal point of the world. Players enter the world, meet, rest, and regenerate. The team began to think about how they could create more usability for players. With the development of Web3, the concept of a virtual property went from an idea to reality. Dark Taverns is exploring what this means not only for players but also for that outside of it. There are 10,000 taverns in this virtual world, all of which are available for purchase by interested parties. Players who own a Tavern can customize its appearance, rent rooms, and hold meetings and events. The boss determines changes in tavern settings. They can have public areas that anyone can enter or be pretty private. The latter can be not only a ticket to an event but also an invitation for people outside that game area to log in and enter a private room. A tavern is a virtual space that is not only a central point of entertainment but also a place for various virtual experiences. Owners can plan concerts, comedian appearances, or gatherings for both in-game and out-of-game guests.

First good game with full Web3 functionality

With the popularity of Web3, the Dark Taverns team immediately began exploring the possibilities of the technology. Today, the team can program all the elements of Web3 on its own. Co-founder, architect, and game developer Tony Hobda said: "We knew how to do it, but finding the best way to program Web3 made it a lot less effort. Dark Taverns wants to let players experience the benefits of blockchain-based gameplay without making it mandatory or the game's focus. Players can acquire or buy items they have the right to resell in the ecosystem or mint an item and sell it on the market. Stardust is a new Web3 platform focused on the Metaverse, specifically creating solutions that integrate blockchain services, such as NFT, with video games. Its latest collaboration is "Tilting Point," an independent developer's production for mobile devices. "Tilting Point," which previously created gameplay with a free-to-play model with transactions inside, is now moving to a play-to-pay model in which players can win NFTs by entering into a virtual world competition.

Stardust WEB 2 and WEB 3 

Web2 refers to the version of the Internet that most of us are familiar with today. The Internet is dominated by companies that provide services in exchange for personal information. In the context of Ethereum, Web3 refers to decentralized applications running on the blockchain. These allow anyone to participate without making money from their data.

The benefits of WEB 3 are as follows:

  • Everyone on the network has permission to use the service - in other words, no licenses are required,
  • No one can take away a user's right to participate in web3,
  • ETH tokens as forms of payment - an additional benefit is the flexibility of this solution, which allows for expansion and programming of further functionality.

WEB 3 disadvantages: 

Web3 now has some limitations. First, scalability - transactions in web3 are slower because they are decentralized. State changes, such as payments, must be processed by "miners" and distributed across the network. 

Second, UX -interaction with web3 applications may require additional steps, software, and education. This can present some obstacles. And third, cost - most successful applications place tiny pieces of code in the blockchain because it is expensive.

The future of blockchain-based gaming

The gaming sector itself is growing faster than the film industry. So it's no surprise that NFT and blockchain are being used to improve the industry. As of today, there are more than 1,450 games that have been developed on blockchain technology. The success of significant titles, e.g., Axie Infinity, shows that the cryptocurrency and gaming industries complement each other well. Unfortunately, larger gaming studios are holding back on investing in and producing such titles due to cryptocurrency laws and regulations. Let's hope that the situation will change to a more liberal one in time. 

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Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.

source: https://www.canva.com/design/DAFDTNKsIJs/8Ky9EoJJI7p98qKLIu2XNw/view#7

Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics

Summary

The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

FAQ

What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.

What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Karolina

18 Mar 2024
What is Berachain? 🐻 ⛓️ + Proof-of-Liquidity Explained

Enter Berachain: a high-performance, EVM-compatible blockchain that is set to redefine the landscape of decentralized applications (dApps) and blockchain services. Built on the innovative Proof-of-Liquidity consensus and leveraging the robust Polaris framework alongside the CometBFT consensus engine, Berachain is poised to offer an unprecedented blend of efficiency, security, and user-centric benefits. Let's dive into what makes it a groundbreaking development in the blockchain ecosystem.

What is Berachain?

Overview

Berachain is an EVM-compatible Layer 1 (L1) blockchain that stands out through its adoption of the Proof-of-Liquidity (PoL) consensus mechanism. Designed to address the critical challenges faced by decentralized networks. It introduces a cutting-edge approach to blockchain governance and operations.

Key Features

  • High-performance Capabilities. Berachain is engineered for speed and scalability, catering to the growing demand for efficient blockchain solutions.
  • EVM Compatibility. It supports all Ethereum tooling, operations, and smart contract languages, making it a seamless transition for developers and projects from the Ethereum ecosystem.
  • Proof-of-Liquidity.This novel consensus mechanism focuses on building liquidity, decentralizing stake, and aligning the interests of validators and protocol developers.

MUST READ: Docs

EVM-Compatible vs EVM-Equivalent

EVM-Compatible

EVM compatibility means a blockchain can interact with Ethereum's ecosystem to some extent. It can interact supporting its smart contracts and tools but not replicating the entire EVM environment.

EVM-Equivalent

An EVM-equivalent blockchain, on the other hand, aims to fully replicate Ethereum's environment. It ensures complete compatibility and a smooth transition for developers and users alike.

Berachain's Position

Berachain can be considered an "EVM-equivalent-plus" blockchain. It supports all Ethereum operations, tooling, and additional functionalities that optimize for its unique Proof-of-Liquidity and abstracted use cases.

Berachain Modular First Approach

At the heart of Berachain's development philosophy is the Polaris EVM framework. It's a testament to the blockchain's commitment to modularity and flexibility. This approach allows for the easy separation of the EVM runtime layer, ensuring that Berachain can adapt and evolve without compromising on performance or security.

Proof Of Liquidity Overview

High-Level Model Objectives

  • Systemically Build Liquidity. By enhancing trading efficiency, price stability, and network growth, Berachain aims to foster a thriving ecosystem of decentralized applications.
  • Solve Stake Centralization. The PoL consensus works to distribute stake more evenly across the network, preventing monopolization and ensuring a decentralized, secure blockchain.
  • Align Protocols and Validators. Berachain encourages a symbiotic relationship between validators and the broader protocol ecosystem.

Proof-of-Liquidity vs Proof-of-Stake

Unlike traditional Proof of Stake (PoS), which often leads to stake centralization and reduced liquidity, Proof of Liquidity (PoL) introduces mechanisms to incentivize liquidity provision and ensure a fairer, more decentralized network. Berachain separates the governance token (BGT) from the chain's gas token (BERA) and incentives liquidity through BEX pools. Berachain's PoL aims to overcome the limitations of PoS, fostering a more secure and user-centric blockchain.

Berachain EVM and Modular Approach

Polaris EVM

Polaris EVM is the cornerstone of Berachain's EVM compatibility, offering developers an enhanced environment for smart contract execution that includes stateful precompiles and custom modules. This framework ensures that Berachain not only meets but exceeds the capabilities of the traditional Ethereum Virtual Machine.

CometBFT

The CometBFT consensus engine underpins Berachain's network, providing a secure and efficient mechanism for transaction verification and block production. By leveraging the principles of Byzantine fault tolerance (BFT), CometBFT ensures the integrity and resilience of the Berachain blockchain.

Conclusion

Berachain represents a significant leap forward in blockchain technology, combining the best of Ethereum's ecosystem with innovative consensus mechanisms and a modular development approach. As the blockchain landscape continues to evolve, Berachain stands out as a promising platform for developers, users, and validators alike, offering a scalable, efficient, and inclusive environment for decentralized applications and services.

Resources

For those interested in exploring further, a wealth of resources is available, including the Berachain documentation, GitHub repository, and community forums. It offers a compelling vision for the future of blockchain technology, marked by efficiency, security, and community-driven innovation.

FAQ

How is Berachain different?

  • It integrates Proof-of-Liquidity to address stake centralization and enhance liquidity, setting it apart from other blockchains.

Is Berachain EVM-compatible?

  • Yes, it supports Ethereum's tooling and smart contract languages, facilitating easy migration of dApps.

Can it handle high transaction volumes?

  • Yes, thanks to the Polaris framework and CometBFT consensus engine, it's built for scalability and high throughput.