Saga: A modular Layer 1 platform in the gaming field

Modular blockchain provides innovative solutions to the challenges of decentralization, security, and scalability in blockchain technology. This approach decentralizes the fundamental functions of blockchain, such as execution, settlement, data availability, and consensus into specialized networks. Unlike traditional blockchains that rely on a single network to handle all operations, modular blockchains separate these tasks, significantly improving the efficiency of each function.

Modularization is a promising approach to enhancing blockchain scalability, addressing key issues of decentralization and security that many blockchain projects are actively exploring. Since the establishment of Celestia, various solutions have emerged in the modularization space, including shared sequencers, validation systems, interoperability protocols, order flow abstraction projects, as well as infrastructure providers such as rollup frameworks and Rollup-as-a-Service (RaaS).

In this context, Saga, as a modular Layer1 platform tailored for the gaming industry, has recently emerged in the field of cryptographic technology, becoming an innovative project worthy of attention.

Overview of Saga

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

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

The influence of Saga is evident in its rapid growth. In just two years, it has attracted 350 projects, with 80% focused on the gaming industry. Strategic partnerships with industry leaders further highlight Saga's ability to effectively expand its infrastructure and support a wide range of blockchain applications.

Saga Architecture

Chainlets

The Saga protocol has revolutionized the deployment of blockchain through the Chainlets product. These are automated, high-performance blockchains that are interoperable and customizable within the Saga ecosystem.

Chainlets are protected by the Saga blockchain and are verified through the shared security model of "Interchain Security", enjoying solid protection. This model enables Saga to provide security assurances for its Chainlets, ensuring they 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 on their own.

Chainlets provide developers with a decentralized and secure way to deploy blockchains for specific applications, allowing developers to freely choose their preferred virtual machine. This flexibility was showcased at the Saga Multiverse Summit with the launch of Saga Realms, enabling developers to launch customizable chains with different characteristics and services on Saga.

Compared to the replication security mechanism used by Cosmos Hub, the process of launching a Chainlet has a unique permissionless nature. Developers only need to use $SAGA tokens to pay for the setup and maintenance costs of the Chainlet, which is similar to using a subscription service from a cloud service provider, but the payment method is in $SAGA tokens.

Security Chain

The Secure Chain is the main security source of the Saga protocol, utilizing Cosmos-SDK. It is responsible for the minting, staking of $SAGA tokens, and potential punitive measures against validator misconduct.

platform chain

The platform chain is also built on Cosmos-SDK and serves as a place for developers to launch and manage Chainlets. It aggregates various security sources, including the security chain, and extends security to Chainlets through the Cross-Chain Verification (CCV) process, while reporting any misconduct back to the security chain for potential punitive measures.

Initially, the platform chain will primarily obtain security assurance from the Saga security chain, but it plans to incorporate additional security sources in the future, including Ethereum, Polygon, Avalanche, and other validators.

Team, Adoption and Alliance

The Saga team is led by a group of experienced co-founders, including Jin Kwon, Jacob McDorman, Bogdan Alexandrescu, and Rebecca Liao.

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

Saga has partnered with multiple leading blockchain protocols to achieve scalability through its Chainlets technology, including XPLA, Com2uS, Celestia Labs, Polygon, and Avalanche.

Saga Origins will launch in March 2024, dedicated to leading Web3 games into the market and providing comprehensive support for game developers.

Token Economics

$SAGA tokens have multiple uses within the Saga protocol, including paying network validators, rewarding stakers, and participating in network governance. An initial issuance of one billion $SAGA tokens was made, with approximately 9% released during the token generation event.

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

Financing Journey

Saga has undergone multiple rounds of financing since 2021, including a $2 million initial investment, a $6.5 million seed round, and a $5 million extension seed round. Additionally, Saga's launch on Binance set a record for all previous launch pools on the platform, attracting over $13 billion in funding in less than 24 hours.

Positive Factors

1. The key importance of modularization is increasingly prominent in blockchain technology.
2. The booming development of the GameFi industry.
3. Strategic partnerships with important blockchain entities.
4. Obtain important investments to provide financial stability.

Negative Factors

1. The competition in the blockchain field is fierce, especially in the gaming and DeFi markets.
2. The high volatility of the cryptocurrency market.
3. Potential regulatory and legal risks may affect operations.

Conclusion

As an important player in modular blockchain technology, Saga demonstrates great potential, especially in the gaming sector, by enhancing efficiency, security, and scalability. The introduction of Chainlets and their commitment to scalable, interoperable, and cost-effective infrastructure allows Saga to not only meet the current demand for blockchain solutions but also profoundly impact the future development of decentralized applications. Saga's commitment to progress and innovation marks it as a key entity in the blockchain ecosystem that deserves attention.