Pages

Showing posts with label play_to_earn. Show all posts
Showing posts with label play_to_earn. Show all posts

Tuesday, April 11, 2023

Project Awakening, Third-Party Development, And The Blockchain

I possibly found the CEO of CCP Games Hilmar Veigar Pétursson's interview with folks from a16z a bit more interesting than most gamers. I believe as someone who plays video games I was supposed to just automatically write off the interview as blockchain/web3 nonsense and ride off grumbling about out-of-touch people with way too much money in their pockets. But I also write about video games, so when I hear a use-case for the blockchain in video games that doesn't involve real money trading, I sit up and take notice.

EVE Online relies on a community of third-party developers to add functionality to the game that CCP doesn't provide, or didn't until recently. Everything from maps and skill planners to the tools to manage EVE's huge player-run corporations and alliances. When Hilmar refers to the EVE infrastructure written by thousands of coders found on GitHub in the interview, those are the types of projects he referred to. While the ability to charge a real world monetary fee to use a jump bridge network makes headlines, the out-of-game infrastructure that makes EVE playable is of greater value.

The answer I found most intriguing in the interview was Hilmar's answer to the question, "...how does leveraging blockchain technology actually make for a better game?" The first part of the answer made reference to third-party development in EVE Online. If Project Awakening is actually EVE 3.0, as Hilmar implies, then we have a new use-case for the blockchain in gaming. I've transcribed Hilmar's answer below (Some editing has been done to make the answer more readable in text form).

There are a few elements where I could hand-to-heart say it’s a better substrate to do certain things. Number one, there’s a lot of third-party development around EVE Online. It largely takes place through an API gateway. So we have a database which is our persistent storage. Then we have the ability to access that persistent storage through an API gateway which is kind of controlled by keys. And if you have the keys you can sort of execute on behalf of another person and you can kind of get through the API and get through to the data and compose the data, etc. 

Currently we don’t really allow many reads through this system. It’s really only rights and the reason why we are kind of at that level is the pattern is quite powerful. But it does have limitations like metering the amount of executions it can do, etc, etc. So smart contract blockchains actually are a pretty good model where people could create third-party code that runs coexisting with other third-party code under the gas economy that exists on blockchains. That helps with kind of people writing messy code that just costs too many opcodes and things like that. 

So pay for your own execution is actually a useful construct to meter third-party development in an open way in a large persistent storage. This combined with the memory interaction model between smart contracts and the underlying kind of state. I mean it’s a little bit problematic for blockchains in a public way because it just doesn’t scale very well. But there are many tricks we have learned through the development of EVE Online which map very well onto the concept of sharding as people have been using it in a blockchain. So we think we can get a little bit easily around the scalability problem by kind of leaning into sharding as a method to do that. 

Then you have the ability for players themselves to compose elements of the world through writing smart contracts, uploading them, and creating infrastructure for the rest to do as EVE players have already done. You can go to EVE on GitHub. You will see amazing amount of infrastructure created by thousands of people over the past 20 years and that’s amazing. So this is another amazing way to do similar things. so that’s number one.

I included some links to topics I wasn't too sure about. Hilmar tends to talk in buzzwords, which is fine for investors looking to be impressed. But I want knowledge, even if the presentation is meant to attract more funding and investment into a cryptocurrency.

After listening to the presentation a few times now, the question arises. Is the possibility of compensating third-party developers for their efforts a good thing? Over the years, CCP has struggled with ways to let these player-developers monetize their work. At first glance, the idea has promise.

But then I can see a downside. Will players then have to pay real money (or cryptocurreny) to join a player-run organization like a corporation or alliance? These organizations are the social glue that keeps players involved in the game, oftentimes long after the player loses interest in the game itself. Harm player social interaction, harm the game.

We are still in early stages with Project Awakening. Since a lot of people just want to naysay and demonize the concept, I think I have a lot less competition on the subject than I normally would. Admittedly, I have problems figuring out how web3 and blockchain technology is a net positive for MMORPGs. Then again, until Genshin Impact came along, who thought gacha games would become popular in the West?

Thursday, March 31, 2022

Axie Infinity Related Blockchain Ronin Network Hacked For $540 Million

On Tuesday, the Ronin network, which powers the play-to-earn game Axie Infinity, publicly reported a major security breach.

LONDON, March 29 (Reuters) - Blockchain project Ronin said on Tuesday that hackers stole cryptocurrency now worth almost $615 million from its systems, in what would be one of the largest cryptocurrency heists on record.

The project said that unidentified hackers on March 23 stole some 173,600 ether tokens and 25.5 million USD Coin tokens. At current exchange rates, the stolen funds are worth $615 million, but they were worth some $540 million at the time of the attack.

This makes it the second-largest crypto theft on record, according to blockchain analysis firm Elliptic.

Ronin is used to power the popular online game Axie Infinity, which uses non-fungible tokens (NFTs) and is the biggest NFT collection by all-time sales volume, according to NFT market tracker CryptoSlam.

Ronin said in a blog post that the hacker had used stolen private keys - the passwords needed to access crypto funds - to make off with the funds.

A lot of reporting is using the higher number over $600 million, but I will use the valuation on the day of the hack. According to Axie Infinity publisher Sky Mavis Ltd., the funds are still in the hacker's crypto-wallet. The publisher also stated the hack occurred due to social engineering, not a technical flaw in the Ronin network. But reading a blogpost from Ronin leaves me wondering exactly the social engineering involved. To me, a little bit of human error was involved, leaving an attack vector open to potential hackers. For those interested in the technical details, the blogpost included details of the attack.

Sky Mavis’ Ronin chain currently consists of 9 validator nodes. In order to recognize a Deposit event or a Withdrawal event, five out of the nine validator signatures are needed. The attacker managed to get control over Sky Mavis’s four Ronin Validators and a third-party validator run by Axie DAO. 

The validator key scheme is set up to be decentralized so that it limits an attack vector, similar to this one, but the attacker found a backdoor through our gas-free RPC node, which they abused to get the signature for the Axie DAO validator.  

This traces back to November 2021 when Sky Mavis requested help from the Axie DAO to distribute free transactions due to an immense user load. The Axie DAO allowlisted Sky Mavis to sign various transactions on its behalf. This was discontinued in December 2021, but the allowlist access was not revoked. 

Once the attacker got access to Sky Mavis systems they were able to get the signature from the Axie DAO validator by using the gas-free RPC. 

We have confirmed that the signature in the malicious withdrawals match up with the five suspected validators.

The blogpost detailed 6 steps the company took as a result of the security breach.

  1. We moved swiftly to address the incident once it became known and we are actively taking steps to guard against future attacks. To prevent further short term damage, we have increased the validator threshold from five to eight.
  2. We are in touch with security teams at major exchanges and will be reaching out to all in the coming days. 
  3. We are in the process of migrating our nodes, which is completely separated from our old infrastructure.
  4. We have temporarily paused the Ronin Bridge to ensure no further attack vectors remain open. Binance has also disabled their bridge to/from Ronin to err on the side of caution. The bridge will be opened up at a later date once we are certain no funds can be drained. 
  5. We have temporarily disabled Katana DEX to due to the inability to arbitrage and deposit more funds to Ronin Network. 
  6. We are working with Chainalysis to monitor the stolen funds.

The Washington Post reported that the breach was noticed days before Ronin became aware of the hack. 

Since tokens fluctuate in value, breaches can have an effect on trading. The crypto community on Tuesday was abuzz about the action of “Cobie,” an enigmatic crypto figure (real name: Jordan Fish). He generated an intense back and forth on Twitter when he said he had taken short positions on a large number of NFTs from the game last week because he perceived security flaws.


Since The Nosy Gamer is a blog dedicated to video games, I should at least mention a little about a game I have only recently heard of. The Wall Street Journal gave a description.

“Axie Infinity,” launched in 2018, is part of a small but fast-growing number of so-called play-to-earn games. Also known as blockchain games, they largely center on the buying, trading and selling of virtual assets backed by nonfungible tokens, or NFTs. The games are considered an early foray into the metaverse, a more immersive future version of the internet where people are expected to work, learn and be entertained.

“Axie Infinity” had more than 1.7 million daily users in February, according to Sky Mavis. In it players collect digital pets called Axies that they use to compete in battles. They can sell and trade the creatures for digital currency. Some Axies are worth more than others.

Finally, since I haven't written any posts explaining what NFTs and play-to-games are, I'll conclude this post with a video put together by the Wall Street Journal. Enjoy!