Layer-2 Networks for Games: Do Lower Transaction Fees Solve the Player Experience?

High transaction fees were one of the earliest obstacles facing blockchain games.

When every item claim, marketplace action or crafting operation required a visible network payment, ordinary gameplay could become economically irrational. A player might receive an inexpensive digital item but spend more on the blockchain transaction than the item itself was worth.

Layer-2 networks were presented as the solution.

Instead of executing every transaction directly on Ethereum, an L2 processes activity separately, combines many transactions and ultimately anchors its state or data to Ethereum. This increases throughput and distributes the cost of settlement across many users. Ethereum’s documentation distinguishes rollups, which derive security from the main network, from sidechains and other systems that use separate security assumptions.

The cost reduction has been significant. Dencun introduced blob transactions in March 2024, Pectra expanded blob capacity in May 2025 and Fusaka added PeerDAS in December 2025, allowing Ethereum to support more rollup data efficiently. By 2026, rollups were processing the overwhelming majority of Ethereum transactions at much lower average costs than direct mainnet execution.

That progress makes blockchain games more practical.

It does not automatically make them enjoyable.

Players still face wallets, signatures, network delays, bridges, failed transactions and unfamiliar asset-management concepts. Lower fees solve one source of friction, but the complete player experience depends on how the studio designs everything around the network.

What a Layer-2 Network Actually Changes

A layer-2 network separates transaction execution from final settlement.

Players send transactions to an L2 operator, validator or sequencer rather than directly to Ethereum mainnet. The L2 executes those transactions, organizes them into batches and posts the necessary data or proofs to Ethereum.

Rollups are generally divided into two categories.

Optimistic Rollups

Optimistic rollups assume transactions are valid unless someone submits a successful fraud proof during a defined challenge period.

They offer broad compatibility with Ethereum tools and smart contracts. Existing EVM applications can often move to an optimistic rollup without extensive code changes.

Zero-Knowledge Rollups

ZK-rollups generate cryptographic proofs showing that a batch of state changes was valid. Ethereum accepts the updated rollup state after verifying the proof.

They still need accessible transaction data so independent parties can reproduce the state and users can withdraw without depending entirely on the operator.

Both approaches reduce the amount of expensive mainnet work required per game transaction.

Neither turns a blockchain into a real-time game server.

Lower Fees Remove an Economic Barrier

Lower transaction costs create several practical opportunities for games.

Studios can consider putting selected actions on-chain without asking players to pay several dollars for each one:

  • claiming a collectible;
  • transferring an item;
  • crafting a rare asset;
  • recording a tournament reward;
  • listing an item;
  • settling a marketplace purchase;
  • assigning temporary usage rights.

The lower cost also makes sponsorship more practical. Instead of requiring players to maintain a balance of the network’s gas token, the studio can pay the transaction fees through a relayer or smart-account system.

Gaming infrastructure such as Immutable Passport combines embedded wallets with gas sponsorship and pre-approved transactions intended to remove repeated approval prompts from Unity and Unreal experiences.

This is a major usability improvement.

The player can press “claim” while the infrastructure handles the underlying transaction.

However, the transaction still has a cost, even when the player does not see it.

Gasless for the Player Is Not Gasless for the Studio

A sponsored action transfers the cost from the user to the publisher.

That can be a good business decision. A studio already pays for servers, authentication, analytics and customer support. Blockchain transactions can become another operating expense.

The danger appears when the game places too many routine actions on-chain.

Suppose one active player generates:

  • 20 item claims;
  • 10 crafting operations;
  • 5 marketplace updates;
  • 50 progression records per day.

Even tiny fees can become material when multiplied across hundreds of thousands of accounts. Automated bots may also attempt to consume the studio’s sponsorship budget.

A gas-sponsorship system therefore needs:

  • per-account limits;
  • approved-contract lists;
  • rate limiting;
  • transaction simulation;
  • bot detection;
  • budget alerts;
  • emergency controls.

A lower fee expands the number of practical use cases. It does not remove the need to decide whether a transaction should exist.

Block Time Is Not the Same as Game Responsiveness

Games need immediate feedback.

When a player presses an attack button, the animation should begin immediately. When an item is equipped, the interface should update without waiting for a blockchain block.

An L2 may confirm transactions within seconds, which is fast for financial settlement but slow for moment-to-moment game input.

The correct architecture separates three forms of response:

Local Response

The client immediately shows animation, sound or interface feedback.

Game Confirmation

An authoritative server confirms that the gameplay action was valid.

Blockchain Settlement

The ownership or economic result is written to the network.

This means a game may display a crafted item before final blockchain settlement, while clearly marking it as processing until the transaction succeeds.

The blockchain should not sit inside the control loop of real-time combat, movement or physics.

Fast Inclusion Is Not Final Settlement

A transaction can appear confirmed on an L2 before its state is fully settled on Ethereum.

This distinction matters when assets are valuable or when users are moving funds between networks.

For optimistic rollups, direct withdrawals to Ethereum traditionally require waiting through a challenge period of roughly seven days. Liquidity providers can offer a faster exit by paying the user immediately and later collecting the completed withdrawal, usually in exchange for a fee.

ZK-rollups use validity proofs instead of a fraud-challenge window. Their L2 transactions reach Ethereum-level finality when the proof and state update are accepted by the mainnet contract.

Players should not need to understand the complete proving model during ordinary gameplay.

They do need accurate information when an operation crosses networks or cannot be reversed immediately.

A marketplace interface that says only “complete” may be misleading when the withdrawal is still pending final settlement.

Sequencers Create a Temporary Trust Layer

Many rollups use a sequencer to order transactions and produce L2 blocks.

Centralized sequencing can improve speed and provide predictable transaction ordering. It also creates operational dependency.

A sequencer may experience:

  • downtime;
  • delayed transaction inclusion;
  • censorship;
  • software failure;
  • incorrect configuration;
  • overload during a major launch.

Ethereum’s ZK-rollup documentation notes that many systems rely on a single operator to produce batches. Rollup designs may allow users to bypass a censoring operator by submitting through the Ethereum contract, but that fallback is more technical and expensive than normal L2 use.

A studio should therefore ask:

  • Who operates the sequencer?
  • What happens when it stops?
  • Can users force transactions through another path?
  • Does the game remain playable during an outage?
  • How quickly can the studio detect the problem?
  • Which actions can be queued safely?

The game should not become completely inaccessible because an ownership network is temporarily unavailable.

Security Depends on the L2 Design

Projects sometimes use “Layer 2” as a general marketing label for any faster Ethereum-compatible network.

The security details differ substantially.

Ethereum distinguishes rollups that publish data to mainnet from sidechains, validiums and other systems that store data or secure state through separate mechanisms.

For a game studio, the relevant questions include:

  • Where is transaction data stored?
  • Who can reconstruct the network state?
  • What happens if the operator disappears?
  • Which contracts custody bridged assets?
  • Can users exit without the operator’s permission?
  • Who can upgrade the chain?
  • Which parties can pause transfers?
  • What security is inherited from Ethereum?

A cheaper network may achieve its performance through assumptions that are acceptable for inexpensive cosmetics but inappropriate for a treasury or high-value marketplace.

The studio should evaluate network security according to the value placed at risk.

Shared Layer 2 or Dedicated Game Chain?

A studio can deploy contracts on a shared public L2 or launch a dedicated chain.

Shared Network

The game uses the same infrastructure as many other applications.

Potential benefits include:

  • existing wallets;
  • established block explorers;
  • available liquidity;
  • familiar developer tools;
  • lower operational responsibility;
  • easier interaction with other applications.

The main disadvantages are shared capacity, less control over fees and dependence on network-wide decisions.

Dedicated Chain

The studio or ecosystem operates a network configured for its application.

Arbitrum’s current chain infrastructure allows operators to configure elements including throughput, gas tokens, data availability, governance and validation.

The OP Stack similarly provides open-source components for deploying standardized L2 rollups and building networks of interoperable chains.

A dedicated chain may offer:

  • predictable block space;
  • custom gas policy;
  • game-specific permissions;
  • controlled upgrade scheduling;
  • specialized execution;
  • isolated performance.

It also turns the studio into a network operator.

The team may become responsible for:

  • sequencer availability;
  • node infrastructure;
  • data publication;
  • upgrades;
  • monitoring;
  • bridge operations;
  • incident response;
  • ecosystem integrations.

Launching a chain can be technically easier than operating one reliably for several years.

Application Chains Can Reduce Competition for Block Space

A dedicated game chain does not compete directly with unrelated applications for every block.

This can make costs and throughput more predictable during:

  • major content releases;
  • asset claims;
  • tournament rewards;
  • marketplace events;
  • large minting campaigns.

Application-specific L2s can also provide efficiencies for systems managing large numbers of assets, which Ethereum identifies as one benefit of the broader L2 model.

However, isolated capacity creates another risk: the game must generate enough useful activity to justify maintaining the network.

A chain with very few users may offer excellent theoretical throughput while creating unnecessary operational cost and fragmented liquidity.

Interoperability Remains a UX Problem

The Web3 ecosystem contains many networks.

A player’s assets may exist on one L2 while marketplace liquidity, stablecoins or external applications exist on another. Moving between them can require a bridge.

Bridging creates several forms of friction:

  • selecting the correct source and destination;
  • waiting for settlement;
  • paying fees on more than one network;
  • receiving wrapped versions of assets;
  • understanding which token pays gas;
  • accepting bridge-contract risk.

Optimism is developing Superchain interoperability to make connected OP Stack chains behave more like one network. Its design targets direct cross-chain messaging among chains sharing a common security model, although the official documentation describes the rollout as iterative rather than universally complete.

Interoperability infrastructure can improve over time.

Studios should still avoid making a bridge part of mandatory first-session onboarding.

Players Should Not Need to Switch Networks Manually

A player should not need to understand chain IDs, RPC endpoints or wrapped gas tokens to play a game.

A modern onboarding system should:

  1. Create or connect the correct wallet.
  2. Select the required network automatically.
  3. Sponsor initial transaction fees.
  4. display balances in familiar game terms.
  5. Explain meaningful transfers only when needed.

Manual network switching may remain available for experienced users, but it should not be the default path.

A low-cost L2 accessed through a confusing external wallet can still provide a worse experience than a more expensive network hidden behind a strong account system.

Lower Fees Can Encourage Bad Architecture

When transactions become inexpensive, teams may be tempted to put more game state on-chain.

The reasoning appears logical:

  • fees are low;
  • blocks are faster;
  • activity is transparent;
  • the game can claim greater decentralization.

But low cost does not make every state transition valuable.

Recording frequent gameplay actions may create:

  • unnecessary latency;
  • larger indexing requirements;
  • more failure conditions;
  • permanent public activity history;
  • higher sponsorship costs;
  • harder migrations;
  • contract upgrade risk.

Studios should continue using conventional databases and authoritative servers for state that does not benefit from public ownership or verification.

The correct question is not whether the L2 can process the action.

It is whether processing the action on-chain creates a meaningful player benefit.

Transaction Batching Improves More Than Fees

A game marketplace interaction may require several operations:

  1. Approve payment.
  2. Exchange a currency.
  3. Purchase the asset.
  4. Transfer ownership.
  5. Record the completed order.

Presenting these as separate wallet prompts creates a poor experience even when every transaction costs less than one cent.

Batching can combine related operations into one player-visible action.

The interface should communicate the outcome:

Purchase this item for the displayed amount.

It should not force players to interpret each underlying contract call.

Low network fees work best when combined with:

  • smart accounts;
  • transaction batching;
  • session permissions;
  • gas sponsorship;
  • human-readable confirmations.

These systems solve different parts of the experience.

Pre-Approved Transactions Need Strict Limits

Some gaming wallets allow players to pre-approve a defined class of transactions so gameplay is not interrupted by repeated signature requests.

This can be useful for low-risk actions such as claiming free items or interacting with a specific game contract. Immutable’s wallet documentation explicitly supports pre-approved transactions without repeated pop-ups in Unity and Unreal integrations.

Permissions should be restricted by:

  • contract;
  • function;
  • value;
  • duration;
  • asset type;
  • transaction count.

A session should not receive unlimited transfer authority merely to make the interface smoother.

Higher-value operations should still require explicit confirmation.

Failure States Still Need Product Design

An L2 transaction can fail because of:

  • insufficient gas sponsorship;
  • an expired signature;
  • incorrect nonce;
  • overloaded RPC service;
  • contract rejection;
  • sequencer downtime;
  • wallet-session failure;
  • asset-state conflict.

The game must communicate what happened.

Useful states include:

  • processing;
  • confirmed;
  • delayed;
  • retry available;
  • failed with no assets changed;
  • support required.

The system must also prevent duplicate outcomes.

When a player retries a reward claim, the backend and smart contract should recognize that the original reward has already been granted or remains pending.

Cheap transactions do not make transaction-state management optional.

What Games Should Actually Place on an L2

Game systemRecommended approach
Character movementOff-chain
Real-time combatAuthoritative game server
Temporary quest progressOff-chain
MatchmakingOff-chain
Transferable cosmetic ownershipL2
Marketplace settlementL2
Limited collectible issuanceL2
High-value tournament rewardL2
Ordinary experience pointsOff-chain
Frequent crafting of common itemsUsually off-chain
Rare transferable crafting outputHybrid or L2
Public creator revenue distributionL2
Personal player dataPrivate off-chain storage

An L2 should host the ownership and settlement systems that need it, not the entire game loop.

How Studios Should Evaluate a Network

A studio should run a realistic test rather than comparing only advertised transaction fees.

The test should measure:

Transaction Experience

How long does a normal action take from the player’s perspective?

Total Cost

What does the studio pay for execution, data, relaying, infrastructure and failed transactions?

Availability

What happens when the sequencer, RPC provider or indexer is unavailable?

Security

Which parts of the system depend on Ethereum, and which depend on separate operators?

Exit Path

Can players move assets without relying entirely on the original studio or network operator?

Tooling

Are wallets, explorers, SDKs, indexers and marketplace integrations production-ready?

Operational Responsibility

Who manages upgrades, monitoring and emergency response?

Player Abstraction

Can ordinary players use the game without understanding the network?

The cheapest individual transaction may not produce the lowest total product cost.

Final Assessment

Layer-2 networks solve one of blockchain gaming’s most important infrastructure problems.

They reduce transaction costs, increase throughput and make gas sponsorship, asset claims and frequent marketplace activity economically practical. Ethereum’s rollup-centered roadmap has continued expanding blob capacity and lowering the cost of posting L2 data.

But cheaper transactions are only one component of player experience.

Players also need:

  • familiar accounts;
  • embedded wallets;
  • invisible gas management;
  • immediate game feedback;
  • limited approval prompts;
  • clear settlement states;
  • safe recovery;
  • simple movement between ecosystems.

An L2 cannot correct a game that requires manual network switching, repeated signatures and bridge transactions before the tutorial.

The strongest blockchain games will treat layer 2 as settlement infrastructure rather than the main player-facing feature.

The network should make ownership inexpensive and reliable.

The game must make that ownership understandable, optional and worth using.

Author

  • Jasmine Domingos

    Jasmine Domingos is a fervent NHL supporter who knows exceptionally about the sport and its players. She has followed the NHL since she was a young girl and has devoted many hours to researching the sport's history, rules, and culture. Jasmine continues to inspire and engage fans worldwide thanks to her passion for the game, knowledge, and dedication, making her an incredible asset to the NHL fan community.

Jasmine Domingos

Jasmine Domingos is a fervent NHL supporter who knows exceptionally about the sport and its players. She has followed the NHL since she was a young girl and has devoted many hours to researching the sport's history, rules, and culture. Jasmine continues to inspire and engage fans worldwide thanks to her passion for the game, knowledge, and dedication, making her an incredible asset to the NHL fan community.