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

Why Your Game's Backend Should Be a Public Good

A technical analysis arguing that open-sourcing core game logic and data as public infrastructure is a superior model for cost, innovation, and player trust in the next generation of games.

introduction
THE ARCHITECTURAL SHIFT

Introduction

Building your game's backend as a public good is a strategic decision that unlocks composability and eliminates platform risk.

Your game's backend is a liability. Proprietary servers create a single point of failure, lock you into a specific tech stack, and prevent your in-game assets from interacting with the wider ecosystem.

A public good backend is composable infrastructure. Deploying logic and state to a general-purpose blockchain like Arbitrum or Solana transforms your game into a permissionless protocol. Other developers can build on top of your game's mechanics.

This inverts the platform relationship. Instead of paying AWS for isolated servers, you contribute to a shared state layer (e.g., an L2 rollup) that benefits from collective security and liquidity. Your game becomes a first-class citizen in a network, not a tenant.

Evidence: Games like Parallel and Pirate Nation run fully onchain, using Arbitrum and Base. Their assets are tradable on Blur and Magic Eden, and their logic is verifiable by anyone, creating inherent trust.

thesis-statement
THE SHIFT

The Core Argument: Backends as a Cost Center, Not a Moat

Proprietary game backends are a financial drain that fails to create defensible value, while shared infrastructure unlocks network effects and superior economics.

Proprietary backends are a cost center. You pay for servers, databases, and engineers to build features like wallets, marketplaces, and leaderboards that every game needs. This is capital misallocation.

Shared infrastructure is a public good. Protocols like Immutable zkEVM and Ronin provide battle-tested, secure backends. Your game inherits liquidity, tooling, and users from the entire ecosystem.

The moat is the game, not the pipes. A game's defensibility comes from its IP, gameplay, and community. Axie Infinity succeeded on Ronin; its moat was the game loop, not its custom sidechain.

Evidence: Building a custom L2 costs millions and takes 18+ months. Deploying on an existing chain like Arbitrum or Polygon is a fraction of the cost and connects you to billions in existing TVL.

GAME INFRASTRUCTURE

The Cost Matrix: Closed vs. Open Backend

A first-principles comparison of backend architectures for onchain games, quantifying the hidden costs of vendor lock-in versus the composable leverage of public infrastructure.

Feature / MetricClosed Backend (Proprietary)Open Backend (Public Good)

Time to Integrate New Chain

3-6 months per chain

1-2 weeks via RPC aggregators (e.g., Chainscore, LlamaNodes)

Protocol Fee Overhead

15-30% revenue share

0% (protocol fees only, e.g., 0.3% on Uniswap)

Data Portability

Max Theoretical TPS

Defined by vendor SLA (e.g., 10k)

Defined by underlying L1/L2 (e.g., 100k+ on Solana)

Innovation Surface

Limited to vendor roadmap

Access to entire DeFi stack (AAVE, Uniswap, EigenLayer)

Settlement Finality

Centralized checkpoint (2-6 sec)

Cryptoeconomic finality (12 sec Ethereum, <1 sec Solana)

Auditability

Opaque, trust-based

Fully verifiable onchain (e.g., via The Graph)

Long-term Cost Trajectory

Increases with scale

Decreases with L1 scaling & competition

deep-dive
THE BACKEND AS PUBLIC INFRASTRUCTURE

The Trust Flywheel: From Suspicion to Sovereignty

Transparent, verifiable backend logic transforms user skepticism into network loyalty and sustainable growth.

Verifiable state transitions are the foundation. A game's core logic must be on-chain or provable via ZKPs to eliminate trust in the operator. This creates an immutable audit trail for every action, from item mints to match outcomes.

Transparency drives composability. An open backend becomes a public good that third-party developers build upon, creating emergent ecosystems like those around Lens Protocol or Uniswap v3. This external innovation is your free R&D.

Sovereignty reduces churn. When players own their assets in self-custodied wallets and interact with permissionless smart contracts, they are not locked into a single platform. This voluntary engagement builds stronger, more valuable loyalty than any walled garden.

Evidence: Games with opaque backends face constant accusations of manipulation. Axie Infinity's Ronin bridge hack demonstrated the catastrophic cost of centralized trust. In contrast, Dark Forest's fully on-chain, ZK-proven universe has cultivated a deeply invested, self-policing community.

case-study
WHY YOUR GAME'S BACKEND SHOULD BE A PUBLIC GOOD

Protocol Spotlight: Builders Proving the Model

These protocols demonstrate that decentralized infrastructure isn't just cheaper and faster—it fundamentally changes the economic model of building and scaling applications.

01

The Problem: Centralized RPCs Are a Single Point of Failure

Game servers rely on centralized RPC providers like Alchemy or Infura, creating censorship risk and unpredictable pricing. A single API endpoint failure can take your entire game offline.

  • Decentralized RPC Networks like POKT Network and Lava Network distribute requests across thousands of independent node operators.
  • Guaranteed Uptime via cryptoeconomic slashing, achieving >99.9% service-level agreements (SLAs).
  • Cost Predictability: Pay with staked tokens or stable credits, avoiding vendor lock-in and opaque enterprise pricing.
>99.9%
Uptime SLA
-70%
vs. Enterprise
02

The Solution: Decentralized Matchmaking as a Credible Neutral Layer

Centralized matchmaking servers are vulnerable to exploits, region-locking, and can be gamed by bad actors. They also capture all the value of player coordination.

  • **Protocols like Axie Infinity's Ronin and Immutable X use a decentralized validator set for game state and match logic.
  • Provably Fair: Game logic and random number generation (RNG) are executed on-chain or via verifiable off-chain systems like Cartesi or Offchain Labs' Arbitrum.
  • Monetize the Protocol, Not the Service: Developers earn from the public good's tokenomics, not from renting server time.
0ms
Trust Delay
$2B+
Chain TVL
03

The Problem: In-Game Economies Are Walled Gardens

Assets and currency are trapped in proprietary databases. This kills composability, prevents real ownership, and makes economies fragile to developer decisions.

  • Public Good Ledgers like Ethereum L2s (Optimism, Arbitrum) and app-chains (via Polygon CDK, Arbitrum Orbit) turn your economy into an open, programmable layer.
  • Instant Liquidity: Assets can be listed on Blur, OpenSea, or Uniswap the moment they're minted.
  • Composable Fixtures: Integrate Chainlink Oracles for real-world data or Aave for in-game lending pools without asking permission.
100%
Asset Portability
$10B+
Composable Liquidity
04

The Solution: Verifiable Cloud Saves & Anti-Cheat

Player progress is stored on company servers, which can be wiped or manipulated. Anti-cheat is a cat-and-mouse game of client-side detection.

  • **Storage Protocols like Arweave and Filecoin provide permanent, decentralized save-file storage. Players truly own their progress.
  • On-Chain Proofs: Use zk-SNARKs (via RISC Zero or SP1) to verify game state transitions and player actions off-chain, providing cryptographically guaranteed anti-cheat.
  • Shift the Burden: Cheaters must now attack cryptographic proofs, not just bypass client software.
∞ Years
Data Persistence
100%
Proof-Based
05

The Problem: You're Rebuilding Auth & Payments From Scratch

Every game studio spends millions reinventing login systems, payment processors, and fraud detection. This is pure overhead that doesn't improve gameplay.

  • Use Public Good Primitives: Privy or Dynamic for embedded wallets, Stripe-like crypto onramps, and World ID for Sybil-resistant proof-of-personhood.
  • Unified Identity: A player's wallet becomes their cross-game identity, reputation, and inventory—see Ethereum Attestation Service (EAS) for portable credentials.
  • Global Payments: Accept any token; settle in stablecoins via Circle's CCTP or LayerZero's OFT standard.
-90%
Dev Time
200+
Countries Served
06

Redstone: Proving the Modular Execution Model for On-Chain Games

Fully on-chain games like Dark Forest and Primodium need ultra-fast, cheap state updates that Ethereum L1 can't provide. Rollups are the answer, but general-purpose ones are too expensive for constant micro-transactions.

  • Redstone is an OP Stack L2 built specifically for high-throughput on-chain gaming and autonomous worlds.
  • Sunodo-style Hyperplays allow game developers to deploy their own dedicated application-specific rollup in minutes, sharing security with Ethereum.
  • Economic Model: Games pay for blockspace in ETH, not a proprietary token, aligning with Ethereum's public good ethos while achieving ~100ms block times and <$0.001 transaction fees.
<$0.001
Avg. Tx Cost
~100ms
Block Time
counter-argument
THE STRATEGIC MISFIRE

Steelmanning the Opposition: "But What About Our IP?"

Treating backend logic as proprietary IP is a strategic error that sacrifices network effects for illusory control.

Proprietary backends create walled gardens. Your game's competitive edge is the player network, not the matchmaking algorithm. Closed systems like traditional MMOs force you to shoulder 100% of infrastructure cost and security risk, limiting scale.

Public goods commoditize your complements. Open-source your game state logic on a shared settlement layer like Arbitrum or Solana. This lets you focus capital on content and UX, while the base layer (e.g., the EVM) handles security and composability for free.

IP is in the assets, not the plumbing. Your true defensible IP is the art, narrative, and character designs stored as verifiable assets on-chain or in decentralized storage like Arweave/IPFS. The backend is just a utility.

Evidence: Look at Loot and Parallel. Their value is the NFT assets and community lore. The game clients that use them are interchangeable front-ends to a shared, open game state, demonstrating that open infrastructure multiplies ecosystem value.

risk-analysis
CRITICAL RISKS FOR GAME DEVS

The Bear Case: Where Public Goods Can Fail

Public goods are not a panacea; misapplied, they can cripple your game's core loop and business model.

01

The Tragedy of the Commons: Unmanaged State Bloat

Shared state is a finite resource. Without proper fee markets or state rent, a popular game can be griefed or made prohibitively expensive for users.

  • Unchecked Growth: A single popular NFT collection can bloat the shared state, increasing sync times and costs for all apps.
  • Free Rider Problem: Bad actors can spam the chain with low-value transactions, congesting the network your game depends on.
1000x
State Growth
$10+
Avg. TX Cost
02

The Sovereignty Trap: Forking and Value Capture

Your game's logic and assets live on a public, forkable ledger. A competitor can copy your entire on-chain state and front-end, creating a vampire attack.

  • Zero-Barrier Cloning: Unlike proprietary AWS infrastructure, your game's core rules are transparent and replicable.
  • Fee Extraction: The underlying L1/L2 (e.g., Ethereum, Arbitrum) captures the economic rent from your game's activity, not you.
0
Fork Cost
>90%
Value Leak
03

The Performance Ceiling: Consensus Overhead

Public blockchains prioritize decentralization and security over raw speed. Your game's backend is bottlenecked by global consensus, not engineering.

  • Latency Floor: Finality times are measured in seconds or minutes, not milliseconds, ruling out twitch-based gameplay.
  • Throughput Limits: Even high-performance L2s like Solana (~5k TPS) are orders of magnitude slower than centralized game servers.
~2s
Finality Time
<1k TPS
Per-Shard Limit
04

The Upgrade Hell: Governance Paralysis

Changing core game mechanics requires navigating public, politicized governance (e.g., DAOs) or complex multi-sigs, not a product manager's decision.

  • Slow Iteration: Bug fixes and balance patches are subject to proposal timelines and voter apathy.
  • Hostile Takeovers: Token-weighted governance can let whales vote against the game's health for personal profit.
30+ days
Upgrade Cycle
<10%
Voter Turnout
05

The Oracle Problem: Off-Chain Is Still Centralized

Games need real-world data (sports scores, weather) and secure randomness. Public goods often rely on centralized oracles (Chainlink, Pyth), reintroducing a single point of failure.

  • Trust Assumption: Your game's fairness depends on a small set of attested data providers.
  • Cost Proliferation: Every off-chain fetch adds latency and direct API cost, negating the "free" backend promise.
~500ms
Oracle Latency
$0.10+
Per-Request Cost
06

The Compliance Black Hole: Irreversible Actions

Immutability is a bug for game operators. You cannot roll back a catastrophic exploit, comply with a legal takedown request, or ban a malicious user without forking the entire chain.

  • No Emergency Stop: A smart contract hack drains the in-game treasury; funds are permanently gone.
  • Regulatory Risk: Hosting certain content on a public ledger may create unmanageable legal liability for the studio.
$2B+
Game Exploits (2023)
0
Rollback Ability
future-outlook
THE PUBLIC GOOD BACKEND

The Inevitable Stack: What's Next (2025-2026)

The competitive edge for the next generation of applications will be built on shared, credibly neutral infrastructure.

Your competitive edge is composability. Proprietary backends create walled gardens that stifle innovation. A public good backend built on protocols like Particle Network's Universal Accounts or EigenLayer AVSs turns your game into a permissionless platform for third-party developers and modders.

The cost structure inverts. You stop paying for servers and start monetizing ecosystem activity. Shared sequencers like Espresso or Astria provide cheap, high-throughput execution, while data availability layers like Celestia and EigenDA decimate storage costs versus monolithic chains.

Interoperability becomes a default feature. Your in-game assets move across chains via intent-based bridges like Across without custom integrations. A user's Universal Account from another app works in your game, eliminating onboarding friction.

Evidence: The modding economy for games like Skyrim is valued at billions. Onchain, this is amplified by permissionless composability—imagine a DEX like Uniswap automatically listing your game's tokenized items because the contracts are standard and open.

takeaways
THE PUBLIC GOOD BACKEND

TL;DR for the Time-Poor CTO

Your game's backend is a cost center and a single point of failure. Onchain infrastructure turns it into a competitive moat.

01

The Problem: The Black Box Backend

Your proprietary server is a liability. It's a single point of failure for exploits and downtime, requires massive CapEx for scaling, and locks player assets in a walled garden. Every new feature is a dev sprint.

99.9%
Your SLA Risk
$1M+
Annual Opex
02

The Solution: Ethereum as Your State Machine

Deploy game logic as smart contracts. The blockchain becomes your canonical, globally consistent database. Player assets are self-custodied tokens (ERC-20, ERC-721). Game state updates are cryptographically verifiable events.

100%
Uptime
Zero-Trust
Verification
03

The Leverage: Composable Liquidity & Assets

Your in-game economy plugs into the $2T+ crypto asset universe. Player skins become tradable on OpenSea. Currency becomes swapable on Uniswap. This isn't interoperability—it's instant market integration without a single bizdev call.

$2T+
Liquidity Pool
0
Integration Cost
04

The Reality: L2s & AppChains for Scale

Ethereum L1 is too slow. Deploy on an EVM-compatible L2 like Arbitrum or Optimism for ~$0.01 transactions and ~2s finality. For hyper-optimized control, launch a dedicated appchain with Polygon CDK or Arbitrum Orbit.

~2s
Finality
<$0.01
Tx Cost
05

The Shift: From Ops to Protocol Design

Your team stops managing servers and starts designing incentive mechanisms. Focus on tokenomics, DAO governance for updates, and smart contract security audits. The community runs the infrastructure.

-70%
Ops Headcount
Community
Powered
06

The Proof: Immutable's $GODS & Illuvium

Immutable processes millions of trades with zero gas fees for users via its L2. Illuvium's entire game economy and governance runs on-chain. They don't have a backend team; they have a protocol team.

Millions
Zero-Gas Txs
Fully Onchain
Economy
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10+
Protocols Shipped
$20M+
TVL Overall
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Why Your Game's Backend Should Be a Public Good | ChainScore Blog