Introduction
Tilted recently hosted a thought-provoking AMA session, Scaling the Future: Innovations in Layer 2 Solutions for GameFi, where leading figures from the blockchain and gaming worlds came together to explore the transformative role of Layer 2 technologies in GameFi.

Tilted held this discussion to promote its L2 on BNB Chain, purpose built for Web2 RWAs.

The discussion highlighted innovative solutions to challenges around network congestion, transaction costs, and scalability. Let’s dive into the insights shared by our distinguished speakers:

• Sarah – Co-founder & COO, Tilted
• Cava – Contributor, Ops Team at TunaChain
• Nathan Lostetter – Co-founder/Author, BattleBrainz
• Darrel Wijaya and Javier Tan – Co-founders, Creo Engine

Key Takeaways

1. Managing Transaction Fees in a Volatile GameFi Environment
   The first discussion point tackled transaction fee volatility, which often intensifies during network congestion. Speakers agreed that batching transactions provides a powerful cost-reduction solution, particularly in high-volatility periods. Layer 2 solutions, like rollups, enable transactions to be processed off the main chain, which alleviates congestion while keeping costs in check—a significant advantage for GameFi’s frequent microtransactions.
2. Avoiding Congestion Transfer to Layer 2
   Speakers explored the potential for Layer 2 congestion to impact Layer 1 chains. Rollups came to the forefront as a solution, with transactions processed off the main chain and periodically updated to Layer 1 for security. This design choice prevents congestion from merely shifting to Layer 2 while maintaining the scalability that games require.
3. ZK-Rollups vs. Optimistic Rollups in GameFi
   For scalability, Layer 2 solutions commonly employ rollups. However, there’s a decision to be made between Optimistic and ZK-Rollups. The consensus among panelists was that ZK-Rollups are the optimal choice for fast-paced GameFi projects, as they offer faster transaction finality and enhanced security through cryptographic proofs. Nonetheless, the ultimate choice depends on each project’s specific needs, balancing trade-offs in speed and security.
4. Balancing Decentralization and Centralization in GameFi
   A critical question explored was how Layer 2 can support decentralized GameFi environments while managing off-chain data. Speakers suggested that developers carefully assess which elements of their games can be fully decentralized and where centralization may still be necessary. This nuanced approach ensures decentralization without compromising the quality of the gaming experience, especially in cases where gameplay logic or state transitions require off-chain processing.
5. The Future of Full Decentralization in GameFi
   As blockchain technology advances, many panelists believe that achieving full decentralization in GameFi without compromising gameplay will become more feasible. Layer 2 solutions continue to evolve, and the hope is that, eventually, decentralization will extend to all aspects of GameFi while still delivering an optimal user experience.

Closing Thoughts
The AMA illuminated the ways Layer 2 innovations are shaping the future of GameFi, addressing the challenges of scalability, transaction costs, and decentralization. By leveraging these cutting-edge solutions, Tilted and other leaders in the GameFi space are set to deliver a gaming experience that is fast, affordable, and decentralized, paving the way for a new era in blockchain-based gaming.

Stay tuned for more insights and discussions as Tilted continues to explore the future of GameFi and decentralized gaming.