THEBLOCK.CO1THECOALESCENCEOFBLOCKCHAIN,GAMINGANDAITHEBLOCK.CORESEARCHEDBY23TheBlockProisTheBlock’spremiumproductportfoliodesignedtohelpinstitutionsevaluateopportunitiesindigitalassets.Pro’sresearch,news,anddataproductsarepoweredbyteamsofsubjectmatterexpertsdeeplyentrenchedinthedigitalassetecosystemwhodeliveractionableintelligencesobusinessescanmakeinformeddecisions.TheBlockResearchproducesresearchcontentcoveringthedigitalassets,fintech,andfinancialservicesindustries.ContactEmail:research@theblock.coTwitter:@TheBlock__RESEARCHEDBYACKNOWLEDGEMENTSLEADAUTHOREDITORAUTHORWewouldliketothankeveryoneatTheBlockwhoassistedwiththisreport-designteam:ZoeEllyseDelRosario;researchteam:GeorgeCalleandStevenZheng.Wearealsogratefultothosethatsharedtheirvaluableperspectivesthroughinterviewsforthisreport:YoniBen-Shimon(NIMNetwork)NateBenish(NIMNetwork)SebastienBorget(Sandbox)JesseEisses(Nosana)MichaelHeinrich(0G)SandeepNailwal(Polygon)Theauthorsofthisreportmayholdtokensmentionedinthisreport.PleaserefertoTheBlock’sfinancialdisclosurespageforauthortokenholdings.ArnoldTohResearchAnalystTwitter|LinkedInIvanWuResearchAnalystTwitter|LinkedInMarcelBluhmDirector,ResearchReportsTwitter|LinkedInACKNOWLEDGEMENTSTHECOALESCENCEOFBLOCKCHAIN,GAMINGANDAITHEBLOCK.CORESEARCHEDBY45Thisreportexplorestheemergingintersectionofblockchaingamingandblockchain-basedartificialintelligence(AI),examininghowthesetechnologiesarereshapingthecryptoecosystem.Blockchaingaming,alongwithitsheavyuseofnon-fungibletokens(NFTs),offersplayerstrueownershipofin-gameassets,securetransactions,andnovelplay-to-earnmodels.Simultaneously,blockchainAIenhancesgamingexperiencesbydecentralizingdecision-makingandautomatingsmartcontractinteractions,introducinginnovativegameplaythatfeaturesAIvsAImechanics.TheconvergenceofbothAIandgamingonblockchainhasthepotentialtotransformnotonlygameplayexperiencesbutalsotheunderlyinginfrastructureofvirtualeconomies.Thisreportanalyzesexistingprotocolsinthesesectors,technologicaltrends,andthepotentialforfuturedevelopments,highlightingtheopportunitiesandchallengesattheintersectionbetweenthetworapidlygrowingdomains.ItoffersinsightsintohowblockchaingamingandAIcanbringanewparadigmfordecentralizedgamingexperienceswhilepushingtheboundariesofAIcapabilities.ABSTRACTTABLEOFCONTENTS6PART1:INTRODUCTION10PART2:THECOALESCENCEOFBLOCKCHAIN,GAMINGANDAI112.1GamingonBlockchain312.2AIonBlockchain2.3AIxGamingonBlockchain462.4TakingStock:TheStateofGamingandAIonBlockchainRails57PART3:THEFUTUREOFBLOCKCHAINGAMINGANDAI60PART4:CONCLUSION70APPENDIX723.1BlockchainGamingXAI’sDiamondInTheRough623.4Primeron“AIAgents”683.2DevelopmentalFrameworks643.3UserExperience652.1.1KeyEcosystemPlayers122.2.1KeyEcosystemPlayers312.3.1KeyEcosystemPlayers472.3.2UseCasesforOnchainAIXGaming542.1.2UseCasesforBlockchainGaming282.2.2UseCasesforBlockchainAI43TABLEOFCONTENTSTHECOALESCENCEOFBLOCKCHAIN,GAMINGANDAITHEBLOCK.CORESEARCHEDBY67PART1INTRODUCTIONTheadoptionofblockchaintechnologyingamesandAInetworksdemonstratesitspracticalapplicationsbeyondcryptocurrencies.ThegameAxieInfinityandthedecentralizedmachinelearningnetworkBittensordemonstrateblockchaintechnology’spracticalapplicationsbeyondcryptocurrencies.Gamedevelopersincorporateblockchainelementsprimarilyforassettokenizationandincentivemechanisms.Byconvertingin-gameassetsintonon-fungibletokens(NFTs),gamescre...
