Trading game assets on Sui! Explaining the new era of the metaverse

Metaverse Information Bureau | Article Introduction 🎮 Will game items turn into assets?! A thorough explanation of the new era of game asset trading with Sui blockchain! #Metaverse #Sui #GameAsset

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A new era for the metaverse! A thorough explanation of game asset trading, Sui, and smart contracts

Hello, I'm John, your guide to the metaverse. Recently, you've probably heard the words "metaverse" and "NFT games" a lot. Especially in the gaming world, a new marketplace where you can freely buy and sell items and characters you've acquired (these are called "game assets") with other players is garnering attention. This time, I'd like to talk about one of the most anticipated of these.Blockchain technology called "Sui"And supporting it"Smart Contract", and these will come true"Game Asset Marketplace"We will explain this in an easy-to-understand manner even for beginners!

Basic information: This is how game item trading will change in the future!

What are Game Asset Marketplace, Sui, and Smart Contracts?

First, let's get some basic vocabulary out of the way.

Game Assets Marketplace:It is an online marketplace where players can buy and sell digital assets (game assets) such as items, characters, and land obtained in the game directly with each other. It may be easier to understand if you think of it as a gaming version of Mercari.
Sui:"Sui" is attracting attention as the underlying technology of this marketplace. Sui is a new type of "blockchain" (a technology that links and manages transaction records like a chain) designed specifically to facilitate the ownership and management of digital assets. It features high-speed processing and low fees, making it suitable for areas where many transactions occur, such as games.
Smart Contracts:This is a program on the blockchain that automatically executes the contents of a contract when certain conditions are met. For example, when buying and selling game assets, it safely and reliably executes processes such as "when the buyer pays the price, the item is automatically sent to the buyer" without human intervention.

Recently, a P2P (person-to-person) game asset marketplace called "OVERTAKE" built on the Sui blockchain has started beta testing and is attracting attention. Such platforms aim to make trading of game assets more efficient, safe, and low-cost.

The problems with trading game items so far and what Sui and his team will solve

In traditional games, the items you acquire can basically only be used within that game, and it is usually difficult to sell them to other players. Even if you can buy and sell items, it is often through unofficial means (RMT: real money trading) that are not approved by the game company, and there is a risk of fraud and account suspension.

However, by utilizing blockchain technology and smart contracts like Sui, the following issues can be resolved:

Transparency and Safety:Transaction records are published on the blockchain and are extremely difficult to tamper with. Smart contracts allow payment and item transfer to occur simultaneously, greatly reducing the risk of fraud.
True Ownership:Game assets managed on the blockchain will give players a stronger sense of true "ownership" of their assets, not just the game company's wishes. This will also pave the way for a future where assets can be used across different games (cross-game compatibility).
Low fees and P2P trading:Because transactions can be made directly between individuals without the need for intermediaries, fees can be kept low. Platforms like OVERTAKE Marketplace aim to make P2P transactions more efficient.

What makes Sui and the Game Asset Marketplace unique?

The Sui blockchain and the marketplace that runs on it have several distinguishing features:

Scalability and Speed:Sui is designed to be able to process large volumes of transactions quickly (this is called high scalability). This means that even if many users trade at the same time, delays are unlikely to occur, and you can expect a smooth user experience.
Low transaction fees (gas fees):When using blockchain, a fee called "gas fee" is usually charged, but Sui aims to keep this extremely low. This will make it easy to trade small amounts of game items.
Security through the Move language:Sui's smart contracts are written in a programming language called "Move," which is designed specifically for the secure management of digital assets and is considered less susceptible to bugs and vulnerabilities.
Developer Friendly:Sui is also committed to providing an environment that makes it easy for developers to build decentralized applications (dApps) and games, which is expected to lead to the creation of a wide variety of games and services on Sui.

SUI Token Supply: How Does It Affect Prices?

Maximum supply and circulation of SUI tokens

The Sui network uses a native token (a cryptocurrency specific to the blockchain) called "SUI." There are some important points to understand about the economics of this SUI token.

Max Supply:The issuance limit for SUI tokens is set at 100 billion SUI. It will not increase beyond this limit.
Circulating Supply:The amount of SUI tokens actually being traded and used in the market. This will grow over time, but will never exceed the maximum supply.

How supply affects price (general economic principles)

Generally, the price of crypto assets is determined by the balance of supply and demand. In the case of SUI tokens,

Limited supply:Because the maximum supply is fixed, if the use of the Sui network expands and demand for SUI tokens increases, their scarcity value may increase, which could lead to an increase in price (although this is not guaranteed).
Increase in circulation:The pace at which new tokens are brought onto the market also impacts the price: a sudden increase in supply can temporarily put downward pressure on the price.

SUI tokens are used to pay transaction fees (gas fees) on the SUI network, vote to decide the network's operating policy (governance), staking (a mechanism for depositing SUI to contribute to the security of the network and earn rewards), etc. The more these uses increase, the greater the demand for SUI tokens is likely to be.

note:This is merely an explanation of general economic principles and does not guarantee the future price of SUI tokens. Investment decisions should be made carefully and at your own risk.

Technical details: the magic of blockchain and smart contracts

What is Blockchain? A Beginner's Guide

First, let's briefly review the "blockchain" (distributed ledger technology) that underpins Sui. Blockchain is a technology that manages data by consolidating many transaction records into units called "blocks" and linking them in chronological order like a "chain."

The great thing about this technology is that

Decentralized (distributed):Instead of data being centrally managed by a specific administrator (such as a bank or large corporation), it is stored and managed in a distributed manner across many computers around the world.
Extremely difficult to tamper with:It is technically very difficult to tamper with the information in a block once it has been added to the chain. Even if someone tries to tamper with it, many other computers will detect that something is wrong.
Highly transparent:In many blockchains, transaction records are made public (with personal information anonymized) so that anyone can verify their legitimacy.

This property enables blockchain to achieve secure and transparent transactions without the need for a "trusted third party."

Sui Blockchain: Fast, Cheap and Great for Gaming!

Sui is a type of "layer-1 blockchain" (an independent foundation blockchain that does not rely on other blockchains). It was designed from the ground up specifically to streamline the ownership and management of digital assets. It was developed by experienced engineers who previously worked on the digital currency project "Diem" (formerly Libra) and the wallet "Novi" at Meta (formerly Facebook).

The main features of Sui are:

Object-centric data model:Sui treats data as "objects." For example, swords, shields, and characters in a game are all managed as independent objects, making it very easy to transfer ownership.
Speedup through parallel processing:Unrelated transactions can be processed simultaneously (in parallel) without waiting for each other. This significantly increases the throughput of the entire network (the amount of transactions that can be processed per unit time), and is expected to make applications with a large number of interactions, such as games, more comfortable to use.
Low transaction fees (gas fees):Through its efficient design, it aims to keep transaction costs low, which is a huge benefit for users who frequently trade small amounts of game assets.

Smart Contracts and the Move Language: The Key to Secure Automated Trading

Smart contracts are the core technology for realizing services such as the game asset marketplace on the Sui blockchain. It is easy to understand if you think of them as "automatic contract execution programs."

For example, let's say you put a rare sword up for sale on the OVERTAKE Marketplace. When a buyer is found and pays the specified SUI token, the smart contract detects it, automatically transfers ownership of the sword to the buyer, and transfers the SUI token to you. This series of steps is executed automatically and immutably by program, so you can trade safely without worrying about fraud.

Sui's smart contracts are written in a programming language called "Move". Move was originally developed for Meta's Diem project and is designed with an emphasis on the security and expressiveness of digital assets. In particular, it has the following features:

Resource-oriented:In Move, digital assets (e.g. SUI tokens and NFTs) are treated as "resources". Resources are strictly controlled at the language level to ensure they cannot be copied, destroyed, or duplicated. This allows you to reliably express ownership of unique digital items such as game assets.
safety:It has a wealth of features to prevent bugs and vulnerabilities, such as static typing and an ownership system, helping to develop safer smart contracts.

With these technological backgrounds, the game asset marketplace on Sui enables free transactions between players with an unprecedented level of safety and efficiency.

Team and Community: The reliability and vibrancy of the Sui ecosystem

The reliability of the Sui development team "Mysten Labs"

The Sui blockchain is being developed by a company called "Mysten Labs." As mentioned above, the team members are former top engineers and researchers who were deeply involved in the research and development of the digital currency project "Diem" and the wallet "Novi" at Meta (formerly Facebook).

They have extensive experience and expertise in the fields of blockchain technology, programming languages, distributed systems, and cryptography, and their technical capabilities are highly regarded in the industry. The fact that development is led by a team with such a strong background is one of the major factors behind the reliability of the Sui project.

Sui has also successfully raised funds from well-known venture capital firms such as Andreessen Horowitz (a16z) and Coinbase Ventures, indicating high expectations for its future potential.

Vibrancy of the Sui community and ecosystem

Although Sui is a relatively new blockchain, its innovative technology and promise have led to a rapidly growing community of developers and users.

Developer Community:Sui's official documentation and tools are being developed, and more and more developers are learning the Move language. Hackathons and workshops are being held around the world, giving birth to new ideas and projects.
Project diversity:On Sui, projects in various fields such as games (GameFi), DeFi (decentralized finance), NFT marketplaces, social media, etc. OVERTAKE, a marketplace specializing in game assets, is one of them.
User Community:On social media such as Twitter (now X), Discord, and Telegram, information exchange and discussion about Sui is taking place actively. More and more users are following the latest information and project progress.

A vibrant ecosystem is crucial for blockchain technology to be put to practical use and develop. In the case of Sui, supported by a strong technical foundation and an enthusiastic community, we can expect to see many more exciting applications emerge in the future.

Use cases and future prospects: Sui's potential goes beyond just games

Current main use cases: Game asset trading and NFTs

At present, the main use cases for the Sui blockchain that are attracting attention are the gaming sector and NFTs (non-fungible tokens).

P2P trading of game assets:Platforms such as the OVERTAKE Marketplace are on the rise that allow players to buy and sell items and characters they have acquired in-game securely and directly on the Sui blockchain, giving players a new way to convert their efforts and achievements into monetary value.
Issuing and buying and selling NFTs:Not only game assets, but also various things such as digital art, collectibles, memberships, etc. are issued and traded on Sui as NFTs. Sui's object-centric model is suitable for expressing and managing the rich characteristics of each NFT.
GameFi:New types of games that combine gameplay and finance, such as games with a "play-to-earn" model, are being developed on Sui.

Future possibilities: DeFi, cross-games, and the expansion of the metaverse economy

Sui's potential is not limited to games and NFTs. Its high-performance architecture is expected to be used in a wider range of fields.

DeFi (Decentralized Finance):Sui's high processing power and low fees make it attractive as the foundation for various DeFi protocols, including lending, decentralized exchanges (DEXs), and stable coins. DEX aggregators such as Cetus Protocol also run on Sui. The integration of GameFi and DeFi, such as loans secured by game assets, is also expected to progress.
Cross-Game Assets and Interoperability:In the future, it is expected that "interoperability" will be realized, where assets acquired in one game can be used in another game via the Sui blockchain. This will enrich the metaverse experience beyond the boundaries of games.
Digital Identity and Proof of Ownership:Sui's technology could be applied not only to game assets, but also to digital identities such as educational background, work history, and qualifications, as well as to proving ownership of real-world assets such as real estate.
More complex on-chain logic:Sui's capabilities allow for more complex logic and interactions to be executed on-chain (on the blockchain) than simply transferring assets, which could lead to innovative decentralized applications never before possible.

Sui has the potential to become one of the foundational platforms in a future where digital assets play a key role in every aspect of our lives.

Comparison with the competition: What makes Sui different?

Sui's strengths: speed, low cost, Move language

There are already many Layer 1 platforms in the blockchain world (e.g. Ethereum, Solana, Avalanche, etc.), so what is Sui's unique strength among them?

Massive scalability and low latency:Sui is said to have the potential to process hundreds of thousands of transactions per second thanks to its unique consensus algorithm (a method for approving transactions) and parallel processing architecture. This allows for smooth operation even in large-scale applications, making it particularly suitable for games that require real-time processing.
Predictable Low Gas Bills:Many blockchains have the problem of gas fees skyrocketing when the network becomes congested, but Sui has introduced mechanisms to stabilize and keep gas fees low, such as separating storage fees from processing fees.
High security and expressiveness with the Move language:As mentioned above, the Move language is specifically designed for the secure handling of digital assets, making it easier for developers to build smart contracts with more secure and complex asset logic.
Object-centric model:Because assets can be directly handled as "objects", you can intuitively and efficiently manage ownership and combine assets. This is especially useful for game assets that have a variety of items and attributes.

Comparison with other platforms (simplified version)

Let's compare it with some of the major platforms.

Ethereum:It is the original smart contract platform and has the largest developer community and ecosystem. However, scalability issues and high gas costs have been a long-standing problem (though Layer 2 solutions are improving this). Sui is designed to solve these issues from the ground up.
Solana:Known for its high throughput and low fees, it is popular in the NFT and GameFi sectors. Sui also aims for high performance, but has a different approach, such as adopting the Move language and an object-centric model. Sui is particularly characterized by its design that places importance on asset ownership and safety.
BNB Chain (formerly Binance Smart Chain):It has gained many users with its low fees and fast transactions, but it has also been criticized for being relatively centralized. Sui aims to achieve high performance in a more decentralized way.

While each platform has its pros and cons, and the best choice will vary depending on your use case, Sui is a strong contender in this space, as it aims to fundamentally improve the experience of owning, managing, and trading digital assets, particularly gaming assets and NFTs.

Risks and Cautions: What you need to know

Sui and the game asset marketplace are very attractive, but new technologies always come with risks and things to be careful about. In order to use them wisely, please understand the following points.

Price fluctuation risk (volatility)

Crypto assets, including SUI tokens, are known to have very large price fluctuations (high volatility). Values can rise and fall sharply. The value of game assets can also fluctuate significantly depending on the popularity of the game and market demand. It is important to participate within the scope of your surplus funds and with a full understanding of the risks.

Risk of fraud and phishing

Unfortunately, the world of cryptocurrencies and NFTs is full of fraudulent projects and phishing (a method of stealing personal information and assets by directing users to fake sites). Be sure to take basic security measures such as bookmarking official websites, not clicking on suspicious links, and never sharing your private key or passphrase with others. When using a new marketplace or wallet, it is important to thoroughly check its reliability.

Uncertainty about laws and regulations

Legal regulations regarding cryptocurrencies and NFTs are still in the process of being developed in various countries around the world. It is necessary to take into consideration the possibility that new regulations will be introduced in the future and the market environment will change. Be sure to check with experts and the latest information regarding tax treatment.

Smart contract vulnerability risk

Smart contracts are very useful technology, but as they are programs, there is a possibility that bugs and design flaws (vulnerabilities) may exist. In the past, there have been cases where vulnerabilities in smart contracts were exploited in DeFi protocols, resulting in the leakage of funds (for example, there have been cases where vulnerabilities were exploited in the past in Cetus Protocol, a DEX aggregator on Sui). One way to judge whether a smart contract is subject to reliable audits and check the track record of the development team is to check, but this does not completely eliminate the risk.

The key to enjoying this new world is to stay up to date and make careful decisions.

Expert opinion and analysis: Expectations for Sui and Overtake

Many experts and industry insiders have expressed high expectations for the Sui blockchain and game asset marketplaces such as Overtake that are being developed on it.

Sui's technical advantages:Articles such as Forbes Digital Assets and CoinStats have introduced Sui as "a layer-1 blockchain designed to optimize speed, scalability, and low transaction costs" and "a high-performance platform meticulously designed for the enhancement of digital assets." In particular, the security and productivity improvements of the Move language are evaluated as significantly lowering the learning curve of Web3 (the decentralized web) (from the Sui.io blog).
OVERTAKE Marketplace Innovation:OVERTAKE is a Sui-based P2P trading platform that focuses specifically on gamers. According to a blog post by Sui.io and Blockchain.News, OVERTAKE aims to make P2P trading of digital game assets "much more efficient, secure, and cost-effective," and has launched an open beta after a closed beta test. The locking of funds and items using smart contracts, and the automatic swap function when trading conditions are met, are attracting attention as mechanisms to ensure safety without additional efforts (X, @overtake_world).
Committed to true asset ownership and transparency:An article on AInvest.com reports that the OVERTAKE Marketplace aims to "revolutionize the gaming industry by enabling true asset ownership and cross-game compatibility." A post on Binance Square also states that OVERTAKE employs a smart contract custody mechanism and is "a true on-chain virtual goods marketplace that completely eliminates black markets and high-fee exchanges."

These analyses suggest that Sui and the services that use it have the potential to significantly change the future of game asset trading. In particular, the realization of highly transparent P2P trading and true digital asset ownership by users has been a long-held dream for many gamers.

Latest News and Roadmap Highlights

Things are moving very fast in the Sui ecosystem and game assets. Here are some recent notable news and developments.

OVERTAKE Marketplace Open Beta Begins:The big news is that OVERTAKE, a Sui-based P2P game asset trading protocol, has begun open beta testing (OBT) (Source: Medium @overtake-world, blog.sui.io). This allows more users to experience safe and efficient game asset trading on Sui. Many transactions have been completed since the first day, showing the size of the potential market.
Continued growth of Sui Network:Since the launch of the Sui mainnet (2023), the network has been running stably, with an increasing number of transactions and active wallets. Many new dApps (decentralized applications) and games have been developed and launched on Sui, and the entire ecosystem continues to expand.
Move language evolution and improved developer support:The Sui development team is committed to improving the Move language and enhancing development tools, helping developers build applications on Sui more easily and safely, which is expected to accelerate innovation.
Seeking collaboration with major game publishers:Platforms like Sui and OVERTAKE aim to work directly with game publishers to enable seamless interaction with in-game assets (Source: X, @JayLovesPotato), which will make game assets even more liquid and valuable.

Sui's roadmap includes plans to continue improving network performance, security, and developer experience. Sui's role as the foundation for DeFi and other Web3 applications, not just in the gaming sector, will become increasingly important.

FAQ: Metaverse game trading questions answered!

Q1: What's the point of a metaverse game asset marketplace?: A1: In traditional games, the items you obtain only have value within the game, and buying and selling of those items is prohibited. However, in the metaverse game asset marketplace, by using blockchain technology (e.g. Sui) and smart contracts,You can safely and freely buy and sell the items (assets) you acquire in the game with other players, just like real-world goods.This means that playing games can potentially lead to direct revenue.
Q2: What makes Sui different from other blockchains? What makes it especially great for games?: A2: Sui isA new blockchain designed specifically for situations where many "things" (assets) are exchanged frequently, such as games.The features are:Fast transaction processing speedと"Low fees"And"Move" is a highly secure programming languageThis allows game players to buy and sell items at low cost and without stress, and record various in-game actions on the blockchain. The big difference is that it is designed to make the management and trading of game assets smoother than many other blockchains.
Q3: Smart contracts sound complicated. Are they really safe?: A3: A smart contract is a program that is executed automatically according to pre-determined rules. For example, a contract such as "When person A pays, person B's item will be automatically sent to person A" can be executed without human intervention. The Move language used in Sui is designed to make these programs safe. However,There is always a possibility that bugs (defects) may be present in any program.Therefore, it is important to choose a reliable marketplace and make sure that the developer is properly audited. Although it is not completely risk-free, it is much safer than traditional person-to-person transactions.
Q4: What should I do specifically to start trading game assets on Sui?: A4: First, you need to create a wallet (a digital wallet to store crypto assets and NFTs) compatible with the Sui network. Next, deposit SUI tokens (used for transaction fees and purchases) into that wallet. Then, access a game asset marketplace on Sui, such as OVERTAKE, connect your wallet, and you will be able to view, buy and sell items. Please follow the instructions for each marketplace to proceed.It is recommended to try a small amount at first..

Summary: The future of gaming opened up by Sui and smart contracts

This time, we explained the "Game Asset Marketplace," which is the key to a new gaming experience in the metaverse era, the "Sui Blockchain" that supports it, and the "Smart Contract" that enables safe transactions. These technologies are fundamentally changing the way we "own" and "trade" game items.

Sui's high-speed, low-cost processing capabilities and the robust security of the Move language provide a more comfortable and safe trading environment for gamers. Platforms like OVERTAKE have emerged as a concrete example of this and are already attracting a lot of attention.

Of course, new technology always requires learning and caution. However, by understanding its potential, you will be able to enjoy the future of the metaverse and Web3 games even more. I hope this information will help you on your adventure.

Disclaimer:This article is for informational purposes only and does not recommend investing in any particular financial product or cryptocurrency. Investment decisions should be made at your own risk and after thorough research (DYOR – Do Your Own Research).

Metaverse Revolution: Sui Blockchain brings a new era of gaming asset trading!