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gaming-and-metaverse-the-next-billion-users
Blog

Why Emergent Gameplay Requires an Open State Layer

This post argues that the complex, player-driven worlds promised by 'Web3 gaming' are impossible on closed servers. True emergence is a property of open, composable state—a condition only blockchains like Ethereum, with frameworks like MUD and Dojo, can provide.

introduction
THE OPEN STATE THESIS

Introduction

Emergent gameplay in onchain games is impossible without an open, composable, and persistent state layer.

Emergent gameplay requires composability. Onchain games are not applications; they are open-state systems where every action and asset is a public primitive. This allows players and developers to build on top of the core game logic, creating unanticipated mechanics like permissionless mods and cross-game economies.

Closed state kills emergence. A game with a proprietary backend or a fragmented asset layer (e.g., assets locked in a single L2) creates walled gardens. This is the architectural failure of Web2 gaming, replicated by chains treating games as siloed dApps instead of public infrastructure.

The standard is persistent global state. True emergence needs a canonical state root that any client or contract can trustlessly read and write to, akin to how Ethereum L1 functions for DeFi. Solutions like MUD Engine and Dojo Engine are frameworks built on this principle, but the underlying chain must guarantee state availability and atomic composability.

Evidence: The 10,000+ active entities in a single Dark Forest universe demonstrate the combinatorial explosion of player strategies made possible by open state. Conversely, games on app-specific rollups without a shared data layer see zero emergent external integrations.

thesis-statement
THE FOUNDATION

The Core Argument: Emergence is a Network Effect of State

True emergent gameplay requires a composable, open state layer that applications cannot monopolize.

Emergence requires open state. Gameplay emerges from the unplanned interaction of independent agents. This is impossible if application logic and state are siloed within a single contract or rollup. The network effect of state only materializes when any agent can read and write to a shared, permissionless ledger.

Silos prevent composability. A game on Solana cannot natively read the state of an NFT on Ethereum. A DeFi strategy on Arbitrum cannot directly use a token from Polygon. This fragmentation is the antithesis of emergence. Projects like LayerZero and Axelar exist to bridge these state silos, proving the demand for a unified layer.

Monopolized state kills innovation. When a game publisher controls all in-game assets and logic, they become the sole arbiter of value and interaction. The emergent economies of EVE Online or Second Life were constrained by this centralization. In contrast, an open state layer like Ethereum allows for permissionless building on top of existing assets, creating unpredictable outcomes.

Evidence: The Total Value Locked (TVL) in cross-chain bridges exceeds $20B. This capital is voting for a unified state layer. Protocols like Across and Stargate are market signals that developers and users are paying a premium to escape walled gardens.

GAME DESIGN PRIMITIVE

Architecture Showdown: Closed Server vs. Open State Layer

Compares the core architectural primitives for on-chain games, highlighting why an open state layer is a prerequisite for emergent gameplay and composability.

Architectural FeatureClosed Server (Web2 / Rollup-Centric)Open State Layer (Fully On-Chain)

State Read/Write Access

Permissioned API (Whitelist)

Permissionless Smart Contract

State Forkability

On-Chain Composability

Limited to Outputs (e.g., NFTs)

Full State (Assets & Logic)

Modding & Third-Party Clients

❌ Bannable

✅ Inevitable

Protocol Revenue Capture

100% to Game Publisher

Shared with Infra (e.g., L2 sequencer fees)

Example Primitives Enabled

Leaderboards, Loot Boxes

Autonomous Agents, On-Chain AMMs for in-game assets, Fully on-chain game engines like MUD & Dojo

Development Overhead

High (Custom backend, anti-cheat)

High (Novel game mechanics, exploit resistance)

Canonical Example

Axie Infinity Origins, Most AAA Studios

Dark Forest, Primodium, Loot Survivor, fully on-chain worlds

deep-dive
THE OPEN STATE LAYER

Why Composability is Non-Negotiable

Emergent gameplay in onchain applications requires an open, shared state layer that protocols can read from and write to without permission.

Composability is permissionless integration. It is the property that allows any smart contract to call any other smart contract, creating a single, shared state machine. This is the antithesis of the walled-garden model of Web2, where APIs are gated and innovation is siloed.

Emergent gameplay requires open state. Games like Dark Forest demonstrated that the most compelling strategies arise when independent agents build tools on top of a public game state. This is impossible if the game's core logic and assets are locked in a proprietary client-server architecture.

The counter-intuitive insight is that security scales with openness. A permissioned environment like a private chain or a gated API appears safer but stifles the network effects that secure the system. The composability of Ethereum and Solana creates a competitive ecosystem where the best code wins, attracting more capital and developers, which in turn hardens the network.

Evidence: DeFi's money legos. The explosive growth of DeFi was not planned by a single team. It emerged from the composable interaction of protocols like Uniswap (liquidity), Aave (borrowing), and Yearn (yield aggregation). A user's collateral in MakerDAO can be leveraged in Compound and then swapped via 1inch in a single atomic transaction—this is the power of an open state layer.

protocol-spotlight
WHY EMERGENT GAMEPLAY REQUIRES AN OPEN STATE LAYER

Builders on the Frontier: Open State in Action

Closed state creates walled gardens; open state enables permissionless composability that unlocks novel applications.

01

The Problem: DeFi's Liquidity Silos

Fragmented liquidity across Ethereum L2s and alt-L1s creates arbitrage opportunities but locks capital. Bridges are slow and expensive, making cross-chain yield farming a logistical nightmare.\n- $2B+ in locked liquidity on major bridges\n- ~15 min finality for optimistic bridges\n- No atomic execution across chains

$2B+
Locked in Bridges
~15 min
Bridge Latency
02

The Solution: Intent-Based Settlement (UniswapX, CowSwap)

Separates order expression from execution. Users submit signed intents ("I want this token at this price"), and a network of solvers competes to fulfill it across any liquidity source.\n- Permissionless solver network drives execution efficiency\n- MEV protection via batch auctions\n- Gasless signing for improved UX

~$10B+
Volume Processed
-90%
Failed Trades
03

The Problem: On-Chain Gaming's Closed Economies

Game assets and logic are trapped in a single smart contract or chain. Players cannot use their NFT sword as collateral in a lending protocol or trade it on a secondary market without explicit, pre-built integrations.\n- Zero composability with external DeFi\n- Developer bottleneck for every new integration\n- Limited asset utility reduces player ownership

0
Native Composability
100%
Dev-Dependent
04

The Solution: Autonomous Worlds & Loot-Style Primitives

Fully on-chain games with open, immutable state and rules. Assets are base-layer NFTs; anyone can build clients, mods, or financial layers on top.\n- Loot NFTs spawned an ecosystem of 50+ projects\n- Dark Forest proved ZK-based open-world mechanics\n- ERC-6551 turns any NFT into a token-bound wallet

50+
Ecosystem Projects
ERC-6551
Token Standard
05

The Problem: Cross-Chain Smart Contract Incompatibility

A contract on Ethereum cannot natively read or write state to Avalanche. Oracles and bridges are centralized points of failure and add latency, breaking synchronous composability.\n- LayerZero, Wormhole, Axelar as trusted relayers\n- ~$1B+ in bridge hacks since 2022\n- Impossible to build a native cross-chain AMM

$1B+
Bridge Hack Value
~3-5s
Oracle Latency
06

The Solution: Universal State Layers (Hyperliquid, Eclipse)

Sovereign chains or L2s that natively aggregate state from multiple execution environments. A single application can have components running optimally on different VMs, synchronized via a shared settlement layer.\n- Hyperliquid L1 uses its own VM for perpetuals\n- Eclipse enables Solana VM on any rollup\n- Shared sequencers for cross-rollup atomicity

1s
Block Time Target
Multi-VM
Execution
counter-argument
THE ARCHITECTURAL IMPERATIVE

Refuting the Objections: Latency, Cost, and Curation

Common criticisms of open state layers are based on a flawed, application-centric view of blockchain's potential.

Latency is a feature, not a bug. The perceived slowness of global state finality is the necessary cost for universal composability. High-frequency applications like games will run on dedicated L2s or sidechains, using the open layer as a settlement and asset registry, similar to how UniswapX uses Ethereum for finality.

Cost objections misunderstand economic scaling. Transaction fees on the base layer are for state finality and security, not routine gameplay. The economic model mirrors Ethereum's rollup-centric roadmap, where expensive L1 secures cheap L2 activity. The base layer cost anchors the value of all derivative state.

Curation does not require a closed garden. An open state layer enables permissionless innovation at the edges, where curation happens via social layers, DAOs, or client-side filters. This is the modular web3 stack in practice: shared data availability (Celestia, EigenDA), execution (Arbitrum, Optimism), and a sovereign settlement layer.

Evidence: The failure of closed ecosystems like early appchains proves the point. Their lack of composable liquidity and users forced a pivot to shared security models (Polygon Supernets, Avalanche Subnets), converging on the open state layer pattern.

FREQUENTLY ASKED QUESTIONS

FAQ: For the Skeptical Game Developer

Common questions about why emergent gameplay requires an open state layer.

An open state layer is a shared, permissionless database (like a blockchain) where any developer can read and write game state. This allows assets and logic from different games to interact, creating emergent, unplanned gameplay. Think of it as a public API for game state, enabling composability between titles built on the same layer, such as Ethereum or Solana.

takeaways
WHY GAMES CAN'T SCALE WITHOUT IT

TL;DR: The Open State Mandate

Closed, siloed game states are the single biggest bottleneck to emergent, player-driven economies and composable experiences.

01

The Walled Garden Problem

Every major web2 game is a silo. Assets and logic are trapped in a private database, making player-driven economies impossible and stifling innovation.

  • Zero Composability: A Fortnite skin can't be used in Roblox. A WoW sword can't be sold on an open market.
  • Developer Lock-In: Studios must build every feature from scratch, slowing iteration to a crawl.
100%
Siloed
0%
Portable
02

Solution: A Shared, Verifiable Ledger

An open state layer (like a modular L2 or appchain) acts as a canonical source of truth for game assets and logic, enabling permissionless read/write access.

  • True Asset Ownership: Players hold provable, portable assets in their own wallets, enabling real secondary markets.
  • Composable Primitives: Developers can build on top of existing game logic and assets, accelerating innovation.
24/7
Uptime
Global
Liquidity
03

The Flywheel of Emergent Gameplay

Open state creates a positive feedback loop where player actions become new game features, attracting more players and developers.

  • Player as Co-Creator: Mods, tournaments, and economies emerge organically from the player base.
  • Protocols Over Platforms: Value accrues to the open network and its participants, not a single corporate entity.
10x+
Engagement
New Genres
Created
04

The Infrastructure Stack (Ronin, Immutable, MUD)

Specialized chains and frameworks are proving the model. They provide the high-throughput, low-cost execution layer for open-state games.

  • Ronin: Built for Axie Infinity, processes ~15M daily transactions.
  • Immutable zkEVM: Offers gas-free trading and ~4000 TPS.
  • MUD Engine: An ECS framework making on-chain game state manageable.
4000+
TPS
$0
Gas Fees
05

The Interoperability Mandate

For the ecosystem to reach its potential, open game states must communicate. This requires standardized asset protocols and cross-chain messaging.

  • ERC-6551: Turns NFTs into smart contract wallets, enabling complex asset bundles.
  • LayerZero & CCIP: Secure messaging protocols allowing assets and state to flow between chains.
Multi-Chain
Assets
Secured
Messaging
06

The Economic Reality Check

Open state isn't free. It trades centralized efficiency for decentralized resilience and innovation. The trade-offs are real.

  • Higher Latency: On-chain consensus adds ~2-5 second finality vs. sub-100ms in closed servers.
  • Upfront Complexity: Developers must architect for public state from day one.
2-5s
Latency
Steeper
Learning Curve
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