Game Channels

Game channels are a form of state channel designed for games played on a blockchain. Instead of recording every move on-chain, which would be slow and costly in fees, players lock funds or game assets in a smart contract, then exchange signed messages directly with each other as the game proceeds. Only the opening deposit and the final outcome are written to the blockchain. If a player cheats or stops responding, the other can submit the latest signed state to the contract, which enforces the correct result. The approach suits turn-based games, betting and casino-style games between a small number of players, and was explored by several early Ethereum gaming projects. Its limits are that all players must stay online and the design works poorly for large, open game worlds. Also see payment channel and GameFi.