Definition ∞ On-chain games are digital games where core gameplay logic, rules, and asset ownership are directly recorded and executed on a blockchain. This architecture provides verifiable transparency, censorship resistance, and true digital property rights for players. Unlike traditional games, every significant action and state change is a transaction, maintained by the distributed ledger. Such games offer a novel model for player interaction and economic participation within virtual worlds.
Context ∞ The discussion surrounding on-chain games frequently involves challenges related to blockchain scalability, high transaction costs, and latency, which can hinder complex gameplay. Developments in Layer 2 solutions and specialized gaming blockchains are crucial for improving performance and reducing operational expenses. Monitoring advancements in this sector offers insight into the future of digital ownership, virtual economies, and decentralized entertainment.
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