Saga: A modular blockchain platform for the gaming industry

Modular blockchain technology provides new ideas for solving the challenges of decentralization, security, and scalability. This innovative approach decentralizes the core functions of the blockchain into specialized networks, including execution, settlement, data availability, and consensus. Compared to traditional blockchains that rely on a single network to handle all operations, modular blockchains separate these tasks, significantly improving the efficiency of each function.

Modularity is seen as an important way to improve blockchain scalability, addressing key issues that many blockchain projects are actively exploring. Since the advent of Celestia, a variety of solutions have emerged in the modularity space, including shared sequencers, validation systems, cross-chain protocols, order flow abstraction projects, as well as rollup frameworks and Rollup as a Service ( RaaS ) and other infrastructure providers.

In this context, Saga stands out as a modular Layer1 platform tailored specifically for the gaming industry, becoming an innovative participant in the field of cryptography.

Overview of Saga

The Saga protocol simplifies the blockchain startup process by providing Chainlet. Chainlet is a dedicated blockchain that developers can easily launch, just like deploying a smart contract. This solution integrates key elements such as data availability, consensus, execution, and settlement, creating a smooth user experience. By integrating these components, Saga not only saves time for developers but also reduces the complexity of modular systems.

The Saga protocol adopts a fully decentralized proof of stake model, ensuring that each Chainlet maintains the same high security standards as the Saga mainnet and uses a unified set of validators.

The influence of Saga is reflected in its rapid growth. In just two years, it has attracted 350 projects, with 80% concentrated in the gaming industry. Strategic partnerships with industry-leading companies further highlight Saga's ability to expand infrastructure and support a wide range of Blockchain applications.

Saga Architecture

Chainlets

The Saga protocol revolutionizes the deployment of Blockchain through the Chainlets product. These are interoperable and customizable automated, high-performance Blockchains within the Saga ecosystem.

Chainlets are protected by the Saga Blockchain and validated through a "cross-chain security" shared security model, enjoying robust security guarantees. This model enables Chainlets to have the same level of security and decentralization as Saga itself, functioning similarly to Cosmos SDK application chains, but without the need to manage a validator set independently.

Chainlets provides developers with a decentralized and secure way to deploy application-specific Blockchains, allowing them to freely choose their preferred virtual machine. This flexibility was showcased at the Saga Multiverse Summit, where the launched Saga Realms enables developers to launch customizable chains with different features and services on Saga.

The process of launching a Chainlet is characterized by its unique permissionlessness. Developers only need to use $SAGA tokens to pay for the setup and maintenance costs of the Chainlet, similar to a subscription service with a cloud service provider, but the payment method is in $SAGA tokens.

security chain

The secure chain is the main source of security for the Saga protocol, built on the Cosmos-SDK. It is responsible for the minting and staking of $SAGA tokens, as well as the penalties for validator misconduct.

platform blockchain

The platform chain is also built on the Cosmos-SDK and serves as a place for developers to launch and manage Chainlets. It brings together multiple security sources, including secure chains, and extends security to Chainlets through the cross-chain verification process (CCV), while reporting any misconduct back to the secure chain for potential penalties.

In the early stages, the platform chain mainly obtains security assurance from the Saga security chain, with plans to incorporate more security sources in the future.

Team and Adoption

The Saga team is led by experienced co-founders:

• Jin Quan: Co-founder and Chief Strategy Officer, former Vice President of Ignite
• Jacob McDorman: Co-founder and Chief Technology Officer, previously co-founded a software consulting company.
• Bogdan Alexandrescu: technology expert and entrepreneur, active in multiple blockchain projects
• Rebecca Liao: Co-founder and CEO, also a co-founder of the global trade Blockchain Skuchain.

As of April 2024, the Saga Innovators Program includes 350 projects, with 80% focused on gaming, 10% on NFTs and entertainment, and 10% on decentralized finance ( DeFi ).

Saga has partnered with several leading blockchain protocols to achieve scalability using Chainlets technology. Major collaborations include XPLA and Com2uS, Celestia Labs, Polygon, and Avalanche.

Saga Origins will launch in March 2024, dedicated to promoting Web3 games to the market. This department provides comprehensive support to game developers, offering services from concept to release.

Token Economics

$SAGA token has multiple uses in the Saga protocol, including paying network validator fees, rewarding staked users, and participating in network governance. The initial issuance is 1 billion $SAGA tokens, of which approximately 90 million (%) were released at the token generation event.

The current market capitalization is $22.5 million, with a fully diluted value of $3.6 billion. The circulating token supply is 90 million, accounting for 9% of the total supply.

Financing Journey

Since its establishment, Saga has undergone several rounds of financing:

• October 2021: Secured $2 million investment from Ignite
• May 2022: Seed round financing of 6.5 million USD
• November 2023: Expanded seed round financing of $5 million

In addition, the launch of Saga on Binance set a record for the platform's launch pool, attracting over $13 billion in funding within 24 hours.

Positive Factors

• The key position of modular technology
• The rise of the game finance industry
• Strategic cooperation with major Blockchain entities
• Obtain important investment support

Challenge

• The market competition is fierce.
• The cryptocurrency market is highly volatile
• Potential regulatory risks

Summary

As an important participant in modular blockchain technology, Saga has enhanced the efficiency, security, and scalability of blockchain through innovation, particularly in the gaming sector. The introduction of Chainlets and its commitment to scalable and interoperable infrastructure make Saga a key entity in meeting current demands and potentially influencing the future development of decentralized applications.