Web3 game development means building a normal game in a normal engine on normal servers, then adding a thin blockchain layer for items that players own and can trade. This guide covers what belongs on-chain, item standards, wallets, chain choice, economy design, store and legal rules, a build process, and lessons from well-known web3 games.
This page is a technical build guide. The guide to choosing a web3 game development company covers staffing, funding and studio selection.
On-chain or off-chain in web3 game development
| Element | Usual place | Reason |
|---|---|---|
| Gameplay, physics, matchmaking | Off-chain, on servers that decide the game state | Needs millisecond response and anti-cheat; block times are far too slow |
| Rare items, characters, land | On-chain, as ERC-721 or ERC-1155 tokens | Players want to own and resell these items |
| Consumables and common loot | Off-chain, with an option to mint on request | Minting every item floods the chain and the market |
| Premium currency | Often off-chain, or an ERC-20 token with care | A tradable token attracts speculators and legal questions |
| Match results and rankings | Off-chain, with optional on-chain proofs for tournaments | Cheaper, and errors are easier to correct |
Some experimental games keep all game state in smart contracts. These fully on-chain games use special frameworks and suit turn-based or slow play, so action games cannot work this way.
Item standards and mechanics
- ERC-1155. One contract holds many item types, both fungible items such as potions and unique items. Batch transfers save gas. Many games use this standard for items.
- ERC-721. Games still use ERC-721 for unique characters and land plots.
- EIP-2981. This standard tells marketplaces the royalty rate. Many marketplaces no longer enforce creator royalties, so do not base your revenue model on royalties.
- Metadata. Store fixed art and attributes on content-addressed storage such as IPFS. Keep stats that change often, such as experience and durability, in the game database and serve them through your API.
- Crafting and upgrades. Mechanics that burn and mint items hold most of the economy bugs and exploits. Test them as carefully as a DeFi contract.
Onboarding without crypto barriers
Most players will not install a browser extension and buy gas tokens to try a game. Current web3 games use these methods instead:
- Embedded wallets. The game creates a wallet at sign-up with email, social login or a passkey, and players who want self-custody can export it.
- Sponsored gas. Smart accounts let the studio pay the fees for in-game actions.
- Session keys. The game signs low-value actions for a limited time, so the player does not see a popup at every move.
- Card or app-store payments. Players pay with normal payment methods, and the game mints the item in the background.
Picking a chain
Games usually choose a low-fee network with tools for games, such as a gaming rollup or app-chain, an Ethereum layer 2, or a high-throughput chain such as Solana. Compare marketplace support, the quality of wallets and SDKs, and where your target players already hold assets.
Treat bridges with caution. On March 23, 2022, attackers stole about $620 million in Ether and USDC from the Ronin bridge used by Axie Infinity, according to Wikipedia's Axie Infinity article. The guide to Axie Infinity-style marketplaces covers what that game did well and badly.
Economy design and the play-to-earn lesson
The 2021 play-to-earn wave paid rewards in tokens whose value depended on new players. Early players earned, token supply grew faster than demand, prices fell and players left. A Reuters report in April 2023 said Axie Infinity's token had fallen 99% from its February 2022 high and that average daily players had dropped from a peak of 2.7 million to about 250,000. Current designs follow these rules:
- The game must be fun without any earning. A game that people play only for money becomes a low-paid job.
- Faucets add currency and items to the game, and sinks remove them. Model both in a spreadsheet or simulation before launch, and include bots in the model.
- Sell cosmetic and convenience items, not items that help a player win.
- Do not promise returns. Marketing a token as income invites securities and consumer-protection problems.
Store rules and legal limits
Store rules decide where a web3 game can be sold.
| Store | Rule for blockchain games |
|---|---|
| Steam | Valve has banned games that use blockchain technology to trade cryptocurrency or NFTs since October 2021. |
| Apple App Store | Under guideline 3.1.1, apps may sell NFTs through in-app purchase and show a user's own NFTs. NFT ownership may not unlock features in the app. |
| Google Play | The blockchain content policy requires a declaration for tokenized assets. Apps may not promote earnings from play or sell a paid chance at an NFT of unknown value. |
Loot boxes that give tradable items can count as gambling in some countries.
Build process
- Build a prototype without blockchain and confirm that players enjoy it.
- Decide which assets go on-chain, and write down why each one gains from player ownership.
- Design the economy with simulations, sinks and anti-bot measures.
- Build the contracts and the sync service that keeps game state and chain state aligned, including handling of chain reorganizations.
- Add wallets and payments with sponsored gas and session keys.
- Audit the contracts, then run a soft launch with limited minting.
Lessons from well-known web3 games
Lists of the best web3 games change often, so the table below names three well-known titles and what each one teaches developers.
| Web3 game | What it is | Lesson for developers |
|---|---|---|
| Axie Infinity | Creature-battling game by Sky Mavis on the Ronin sidechain | Rewards that depend on new players collapse when growth stops, and a bridge is a high-value target. |
| Gods Unchained | Trading card game by Immutable, with cards tied to NFTs | Card games fit item ownership well, because players already collect and trade cards. |
| Off the Grid | Shooter by Gunzilla Games on PS5, Xbox Series X/S and Windows, in early access since October 2024 | A large console game can keep the NFT marketplace optional, according to Wikipedia's Off the Grid article. |
The guides to blockchain game development and NFT gaming platforms cover the wider field.
Frequently asked questions
Which game engine should I use for a web3 game?
The same engines as any other game: Unity, Unreal, Godot or web frameworks. The game connects to the blockchain through SDKs and its backend, not through the engine.
Do players need crypto to play?
No. Embedded wallets, sponsored gas and normal payments let players start at once, and they use self-custody only if they choose to.
Should my game have its own token?
Only if a token solves a real design problem and you can manage the legal and economic risk. Many games use an off-chain currency and on-chain items.
How much does blockchain add to web3 game development cost?
The contracts are often a small share of the budget. Wallet integration, the sync service, economy design, audits and anti-bot work cost more. Together they commonly add several engineer-months to the cost of the game itself.
Can a web3 game be sold on Steam?
Not if it lets players trade cryptocurrency or NFTs. Valve has banned such games since 2021. Some studios sell on consoles or other PC stores, or keep the blockchain features optional.