Saga: A game-specific modular Layer 1 platform

Modular blockchain technology provides innovative solutions to the challenges of decentralization, security, and scalability. This approach disperses the core 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, greatly improving the efficiency of each function.

Modularization is a promising path to enhance blockchain scalability, addressing core issues of decentralization and security that many projects are actively exploring. Since the advent of Celestia, a variety of solutions have emerged in the modularization space, 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.

In this wave of innovation, Saga emerges as a modular Layer1 platform tailored specifically for the gaming industry, becoming a rising star in the field of cryptocurrency technology.

Overview of Saga

Starting a blockchain is usually complex and cumbersome, requiring developers to handle various technical details. The Saga protocol simplifies this process by providing Chainlet, allowing developers to easily launch dedicated blockchains as if they were deploying smart contracts. 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 common complexities 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 the same set of validators.

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

Saga Architecture

Chainlets

The Saga protocol revolutionizes the way blockchain is deployed 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 solid protection. This model allows Saga to provide security guarantees for Chainlets, ensuring that they possess the same level of security and decentralization as Saga, 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 for the free choice of preferred virtual machines. This flexibility is showcased at the Saga Multiverse Summit, where the launch of Saga Realms enables developers to launch customizable chains with different features and services on Saga.

Compared to the replication security mechanism of Cosmos Hub, the process of launching a Chainlet has the unique feature of being permissionless. Developers only need to pay the fees for setting up and maintaining the Chainlet with $SAGA tokens, similar to using a subscription service from a cloud service provider, but the payment method is with $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 the $SAGA token, and the punitive measures for handling validator misconduct.

platform chain

The platform chain is built on Cosmos-SDK and serves as a place for developers to launch and manage Chainlets. It aggregates multiple sources of security and extends security to Chainlets through Cross-Chain Validation (CCV), while reporting misconduct back to the security chain for potential penalties.

In the early stages, the platform chain mainly obtains security assurance from the Saga security chain, and plans to incorporate additional security sources including Ethereum, Polygon, Avalanche, and others in the future.

Team, Adoption and Alliance

The Saga team is led by experienced co-founders:

• Jin Kwon, Co-founder and Chief Strategy Officer, former Vice President of Ignite.
• Jacob McDorman, co-founder and Chief Technology Officer, co-founder of the software consulting company Cellaflora.
• Bogdan Alexandrescu, technical expert and entrepreneur.
• Rebecca Liao, Co-founder and CEO, co-founder of the global trade blockchain Skuchain.

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

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

Saga Origins, launched in March 2024, is dedicated to leading Web3 games into the market, fully supporting game developers by providing services such as influencer collaboration, user acquisition funding, and 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. An initial issuance of 1 billion $SAGA tokens was made, with approximately 9% released at the token generation event.

Market value of $22.5 million, fully diluted value of $3.6 billion. Current circulation is 90 million, accounting for 9% of total supply.

Financing Journey

• October 2021: Raised $2 million with investment from Ignite.
• May 2022: Seed round raised $6.5 million.
• November 2023: Expanded seed round raised $5 million.

Saga's launch on Binance 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 rise of the gaming finance industry
• Strategic cooperation with key blockchain entities
• Gain support from well-known investors

Negative Factors

• The market is highly competitive
• The cryptocurrency market is highly volatile
• Potential regulatory and legal risks

Conclusion

Saga, as an important player in modular blockchain technology, stands out particularly in the gaming sector. Through the innovation of Chainlets and its commitment to scalable, interoperable, and cost-effective infrastructure, Saga not only meets current demands but will also profoundly impact the future development of decentralized applications. Saga's commitment to innovation makes it a key entity worth watching in the blockchain ecosystem.