Saga: A modular Layer 1 platform built for the gaming industry

Introduction

Modular blockchain technology provides innovative solutions to the challenges of decentralization, security, and scalability. This approach disperses the fundamental functions of blockchain into specialized networks, including execution, settlement, data availability, and consensus. Unlike traditional blockchains, the modular architecture significantly enhances the efficiency of each function by separating these tasks.

Since the rise of the modularity concept, various solutions have emerged in this field, including shared sequencers, verification systems, cross-chain protocols, order flow abstraction projects, as well as rollup frameworks and Rollup as a Service (RaaS) infrastructure providers.

In this innovative field, Saga stands out as a modular Layer1 platform designed specifically for the gaming industry, becoming a new star in the field of cryptographic technology.

Overview of Saga

The Saga protocol simplifies the blockchain launch process through its unique Chainlet technology. A 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, providing developers with a seamless user experience. By integrating these components, Saga not only saves development time but also reduces the complexity of modular systems.

Saga operates on a fully decentralized proof-of-stake model, ensuring that each Chainlet maintains the same high security standards as the Saga mainnet and uses the same set of validators.

In just two years, Saga has attracted 350 projects, with 80% focusing on the gaming industry. Strategic partnerships with industry leaders such as Polygon, Avalanche, and Celestia further highlight Saga's strength in expanding infrastructure and supporting a wide range of blockchain applications.

Saga Architecture

( Chainlets

Saga's core product, Chainlets, is an interoperable and customizable automated, high-performance blockchain within its ecosystem. These Chainlets are protected through a "cross-chain security" model, ensuring the same level of security and decentralization as the Saga main chain.

Chainlets provides developers with the flexibility to choose their virtual machine, allowing them to deploy blockchains for specific applications. With the launch of Saga Realms, developers can launch customized chains with different features and services on Saga, supporting various tech stacks and security sources.

Unlike the copy security mechanism of Cosmos Hub, the process of launching a Chainlet does not require permission. Developers only need to use $SAGA tokens to pay for setup and maintenance fees, similar to a cloud service subscription model.

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( Security Chain and Platform Chain

The security chain is responsible for the minting, staking, and management of validator behavior for the $SAGA token. The platform chain is where developers launch and manage Chainlets, gathering various security sources, and extending security to Chainlets through cross-chain verification )CCV###.

Team and Ecosystem

Saga is led by a team of experienced co-founders, including Jin Kwon(, Jacob McDorman), Bogdan Alexandrescu(, and Rebecca Liao). The team members have extensive backgrounds in blockchain and technology.

As of April 2024, the Saga Innovators Program has included 350 projects, with 80% focused on gaming, 10% on NFTs and entertainment, and 10% on DeFi. Saga has established strategic partnerships with XPLA, Celestia, Polygon, and Avalanche to expand its technological applications.

Saga Origins will launch in March 2024, dedicated to supporting Web3 game development by providing comprehensive support from concept to release, including influencer collaboration, user acquisition support, and promotion services.

Token Economics

$SAGA token plays multiple roles in the Saga ecosystem, used for paying the launch and maintenance fees of Chainlet, rewarding stakers, and participating in network governance. The initial issuance is 1 billion tokens, of which 9% (approximately 90 million tokens) are released during the token generation event.

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

Financing Journey

Saga has conducted multiple rounds of financing since 2021:

• October 2021: Secured $2 million investment from Ignite
• May 2022: Seed round financing of $6.5 million
• 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.

Advantages and Challenges

( advantages

• Strategic positioning as a pioneer of modular blockchain
• Focus on the rapidly growing GameFi sector
• Strategic cooperation with industry-leading companies
• Supported by well-known investors, with strong financial strength.

) Challenge

• The competition in the blockchain and GameFi market is fierce.
• The cryptocurrency market is highly volatile
• Potential regulatory and legal risks

Conclusion

As an important participant in modular blockchain technology, Saga has improved the efficiency, security, and scalability of blockchain, particularly in the gaming field, through its innovative Chainlets technology. Its flexible and interoperable infrastructure not only meets current needs but also has the potential to influence the future development of decentralized applications. Saga's commitment to technological advancement and innovation makes it an important entity worth paying attention to in the blockchain ecosystem.