Saga: A Modular Layer 1 Platform Focused on Gaming

Modular blockchain technology provides innovative solutions to the challenges of decentralization, security, and scalability. This approach disperses 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, as a potential path to enhance blockchain scalability, is addressing key issues of decentralization and security that many projects are actively exploring. Since the advent of Celestia, various solutions have emerged in the modularization field, including shared sequencers, validation systems, interoperability protocols, order flow abstraction projects, as well as rollup frameworks and Rollup as a Service ( RaaS ) and other infrastructure providers.

It is worth noting that Saga, as a modular Layer1 platform specifically tailored for the gaming industry, has recently emerged in the field of cryptography, becoming the focus of innovation.

Overview of Saga

Launching a blockchain is usually complex and cumbersome, requiring developers to handle various technical details. The Saga protocol simplifies this process by providing Chainlet - a dedicated blockchain that can be easily launched like deploying a smart contract. This solution integrates core elements such as data availability, consensus, execution, and settlement, creating a seamless user experience. By integrating these components, Saga not only saves developers time but also reduces the inherent complexity of modular systems.

The Saga protocol adopts a completely 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.

The influence of Saga is reflected 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 strength in effectively expanding infrastructure and supporting a wide range of blockchain applications.

Saga Architecture

Chainlets

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

Chainlets are protected by the Saga blockchain and verified through the "inter-chain security" shared security model, enjoying solid protection. This model allows Saga to provide security guarantees for 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 their own validator sets.

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 is prominently showcased at the Saga Multiverse Summit with the launch of Saga Realms, enabling developers to launch customizable chains on Saga with different characteristics and services, such as tech stack, security sources, and their related obligations. Under the Realms framework, the standard Saga Chainlet will become one of the many fields supported in the future.

Compared to the replicated 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, similar to subscribing to a cloud service provider, but the payment method is in $SAGA tokens.

Security Chain

The Security Chain is the main security source of the Saga protocol, built on Cosmos-SDK. It is responsible for the minting and staking of $SAGA tokens, as well as potential penalties for 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 brings together multiple security sources, including the security chain, and extends security to Chainlets through the Cross-Chain Validation (CCV) process, while reporting any misconduct back to the security chain for potential penalties.

In the early stages, the platform chain will mainly obtain security assurance from the Saga security chain, but plans to incorporate additional security sources in the future.

Team, Adoption, and Alliance

The Saga team is led by experienced co-founders:

• Jin Kwon, Co-founder and Chief Strategy Officer
• Jacob McDorman, Co-Founder and Chief Technology Officer
• Bogdan Alexandrescu, technical expert and entrepreneur
• Rebecca Liao, Co-founder and CEO

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

Saga has collaborated with multiple leading blockchain protocols, utilizing Chainlets technology for scalability, including XPLA, Com2uS, Celestia Labs, Polygon, and Avalanche.

Saga Origins will launch in March 2024, aiming to lead Web3 games into the market. This department provides comprehensive support for game developers, offering services such as influencer collaborations, user acquisition funding support, and extensive promotion.

Token Economics

The $SAGA token has multiple uses within the Saga protocol, including paying network validator fees, rewarding stakers, and participating in network governance. The initial supply is 1 billion $SAGA tokens, of which approximately 90 million (9%) were 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 completed multiple rounds of financing since 2021:

• October 2021: Secured $2 million investment
• May 2022: Seed round raised $6.5 million
• November 2023: Expanded seed round raised $5 million

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

Positive Factors

• The key position of modular technology
• The booming development of the gaming finance industry
• Strategic cooperation with industry leaders
• Obtain important investment support

Negative Factors

• Market competition is fierce
• The cryptocurrency market is highly volatile
• Potential regulatory and legal risks

Summary

Saga, as an important player in modular blockchain technology, stands out particularly in the gaming field. Through the innovation of Chainlets and its commitment to scalable and interoperable infrastructure, Saga not only meets current demands but will also profoundly influence the future development of decentralized applications. Saga's commitment to progress and innovation makes it an important entity worth paying attention to in the blockchain ecosystem.