Blockchain Gaming & Toshimon as a State Channel Application

“This is likely the most complex game yet to be implemented as a state channel application.”

What is a “Blockchain Game”?

Buzzwords and acronyms have proven to be extremely fashionable in the crypto space and are used frequently as marketing tools. Whether it be DeFi, P2E, Web3, or the cringiest of all, WAGMI, every project finds a way to tie one of these popular phrases into their messaging. We’ve noticed, and you probably have too, that these terms are often used to mislead rather than to inform.

While we have strong opinions on many of the popular buzzwords, we want to take a moment to discuss the use of the phrase “blockchain game” and how it pertains to Toshimon.

Primarily, the phrase is attached to many NFT projects. These projects typically create gaming environments that feature integrations allowing their players to use the NFTs that they own as in-game avatars. While we acknowledge that this is a great feature and one of the most obvious utilities of NFTs, we do not believe that it is enough to justify the “blockchain game” label.

So what does justify a product labeling itself as a blockchain game? Wikipedia defines the term as follows:

“A blockchain game (also known as a NFT game or a crypto game) is a video game that includes elements that use cryptography-based blockchain technologies. Blockchain elements in these games are most often based on the use of cryptocurrency or non-fungible tokens (NFTs) which players can buy, sell, or trade with other players, with the game publisher taking a fee from each transaction as a form of monetization.”

We disagree with this definition and argue that the simple involvement of a blockchain-based asset within a game is not enough to justify the label of “blockchain game”. We could have accepted this definition, labeled Toshimon as a blockchain game, and justified it with the current beta stage integrations. After all, Toshimon NFTs can already be used for in-game battling and $TOSHI tokens for ToshiFusion. Instead, we’ve decided to take things up a notch, raise the standard, and build the infrastructure that will truly classify Toshimon as a blockchain game.

Our ideal version of a blockchain game is one that doesn’t just utilize blockchain assets, but also records game data, player actions and disputes on-chain. Enabling this allows for every battle and its corresponding result(s) to be recorded on the public ledger, ultimately adding a level of security and verifiability that has yet to be achieved in the gaming industry. In most cases, relaying such quantities of data to a blockchain could impose exorbitant transaction fees which would oppose Toshimon’s commitment to a low barrier of entry. State channels fix this.

What is a state channel?

A state channel is a blockchain scaling solution that allows for users to interact with each other in a secure, off-chain environment. Transactions within these channels are recorded chronologically, and once the interaction is completed both users sign to confirm the outcome, or final state. The final state is then settled on-chain and any funds are distributed as intended.

Ethereum.org documentation provides a great example of the basic state channel to help readers better understand:

State channel are perhaps best explained through an example, such as a game of tic tac toe:

1) Create a multisig smart contract “Judge” on the Ethereum main-chain that understands the rules of tic-tac-toe, and can identify Alice and Bob as the two players in our game. This contract holds the 1ETH prize.

2) Then, Alice and Bob begin playing the game, opening the state channel. Each move creates an off-chain transaction containing a “nonce”, which simply means that we can always tell later in what order the moves happened.

3) When there’s a winner, they close the channel by submitting the final state (e.g. a list of transactions) to the Judge contract, paying only a single transaction fee. The Judge ensures that this “final state” is signed by both parties, and waits a period of time to ensure that no one can legitimately challenge the result, and then pays out the 1ETH award to Alice.

Toshimon as a State Channel Application

In relation to Toshimon, state channels provide a way of enforcing the rules of the game while minimizing on-chain actions. This enables on-chain settlements and verifiability with the benefit of minimal transaction fees. Furthermore, state channels allow users to wager ETH, NFTs, and/or other tokens on the outcome of battles without relying on trust or any third-party custodian.

Once Toshimon is fully released as a state channel application, battles and game rules will look slightly different than they do in the beta. When two users wish to battle they will initiate the challenge and each select five Toshimon that they want to battle with. Players may also each bring up to five items (potions, boosts, etc) and five Toshimon Move Modules (TMMs). All of these selections must be made before the battle begins. As previously stated, battles take place within the state channel, so the NFTs that you and your opponent select and agree on will be the only ones available in battle.

In addition to agreeing on the NFTs and desired wagering funds, players must also agree on the rules of battle. The rules will be defaulted to those set by the Toshimon team, however players will be permitted to alter the rules so long as both parties agree. This may take the form of deck-wide HP boosts to increase battle length, disabling status effects, banning certain items, or whatever other game dynamics you’d like to change. We believe that this not only adds depth to the game, but is also a necessary step to justify labeling Toshimon as a decentralized game.

Once players have come to agreement and assets are deposited into the state channel, the battle can begin. The use of the state channel allows you to battle seamlessly, without having to sign transactions for every single action you take in battle. Instead, users only need to sign two transactions: the initial one to open the state channel and the final one to close the channel. Everything in between is instantaneous and free!

More to Come

This article was meant to be a brief overview of state channels and provide insight into how and why we are expanding the development of Toshimon. We firmly believe that we are raising the standards of the blockchain gaming space and setting an example for other projects. Our commitment to decentralization and ‘staying true to the chain’, if you will, does not stop here. We will be releasing more long format posts, like this, detailing some of the hidden intricacies of Toshimon among other developmental aspects that are in the works!

Thanks for reading! We encourage you to reach out with questions/feedback by joining our Discord or following us on Twitter. For licensing, sales, or other business inquires contact us by mail at team@toshimon.io.