How Does Saga Blockchain Work? (Launching Custom Blockchains with Ease)

Saga is a layer-1 blockchain protocol built on the Cosmos network that is designed to help developers launch layer-1 blockchain protocols.

At its core, Saga looks to make launching a dedicated blockchain, known as a Chainlet on the Saga network, as easy as deploying a smart contract. But what exactly does all that mean and what makes Saga a game changer?

Today we find out!

What is Saga?

Saga was founded by Rebecca and Bogdan, in 2021 with Rebecca acting as their CEO.

Saga can best be described as a protocol for automatically provisioning application-specific blockchains in the multichain metaverse.

As such, a large portion of Saga’s network is focused on crypto-gaming, with some reports suggesting this sector might even be as much as 80% of their overall network activity.

However, it is important to note that Saga isn’t limited to crypto-gaming, though it would appear that is where it has found the most appeal among developers. But how does Saga work exactly?

How does Saga work?

As I mentioned, Saga is a Layer-1 blockchain protocol that allows developers to design their own dedicated blockchains for running applications.

Saga itself was created on the Cosmos network of independent blockchains, which also means, like the rest of the Cosmos ecosystem, it is a Proof-of-Stake blockchain, that uses Tendermint for its consensus, and has the Inter Blockchain Communication Protocol enabled to allow for interoperability with all the other Cosmos based blockchains.

Blockchains created through Saga all share the same security, scaling solutions, and SDKs, but each gets its own unique chain which they can customise to suit their specific needs.

By utilising Cosmos’ shared security, while also providing innovations in validation techniques and the automated use of CI/CD deployment standardisation, Saga looks to give developers all the tools to create and launch a layer-1 blockchain in a few clicks.

But, let’s quickly go over some definitions to make sure we’re all on the same page.

As I mentioned previously, Saga is a layer-1 blockchain. Layer-1 refers to the position within the blockchain hierarchy, a Layer-1 is typically the foundational layer from which all other blockchain components are built.

As an example, Ethereum is a Layer-1 network, whereas something like Optimism would be a Layer-2 application as it works on top of Ethereum and is designed to complete a specific task for the Ethereum network.

As Saga is a Layer-1, it provides the assets for developers to build their own Layer-1 blockchains, which they refer to as Chainlets.

Next, an SDK refers to a Software Development Kit, which is a collection of tools, libraries, and documentation that developers use to create blockchains and their applications, ultimately streamlining the development process by providing necessary resources and simplifying integration.

CI and CD, on the other hand, refers to Continuous Integration and Continuous Delivery or Continuous Deployment and aims to streamline and accelerate the software development lifecycle.

In this context, Continuous Integration refers to the practice of automatically and frequently integrating code changes into a shared source code repository.

Whereas Continuous Delivery or Continuous Deployment is a two-part process that refers to the integration, testing, and delivery of code changes.

For clarity, the difference between Continuous Delivery and Continuous Deployment is that Continuous Delivery stops short of automatic production deployment, whereas Continuous Deployment will automatically release the updates onto the network.

You may be wondering what makes Saga any different from Cosmos? As, on the surface, they are somewhat similar.

The short answer is permission. Saga is permissionless, meaning anyone can create and launch a blockchain through their platform as long as they have enough SAGA tokens to pay for the cost of setting up and maintaining the blockchain. But what really makes Saga a game changer?

What makes Saga unique?

It could be said that Saga’s most unique offering is bringing the benefits of Cosmos to everyone.

This includes unmatched scalability as each application has its own Chainlet, ensuring dedicated resources and eliminating the limitations of a shared blockspace.

Predictable costs where developers have a clear picture of their expenses as they pay for Chainlet provisioning based on their specific needs.

And finally, upgradability as Chainlet components like the virtual machine module and Tendermint Core can be upgraded independently, offering developers greater control over their applications.

However, it should also be mentioned that Saga has been popular with game developers thanks to Saga Origins.

Saga Origins is a publishing system for game developers and claims to be the home for the most provocative, expansive, and boundary-pushing gaming experience.

By mixing indie developers with studios and resources, Saga looks to turn their ideas into playable realities and ultimately offers greater control for the players and better profits for the developers than is seen in traditional games development. Now that we know what Saga is and how it works, let’s explore the tokenomics of the SAGA token.

SAGA Tokenomics

In total, there will be 1 billion SAGA tokens, with about 10% currently on the market.

As is typical for Proof-of-Stake currencies, they can be used for payments, staking, and governance.

After the vesting schedules have finished by mid-2027, the token distribution will look as follows:

20% will have been given away in Airdrops, 20% will also be given away to Core Contributors, another 20% will go towards Fundraising, 30% will be put back into the Ecosystem and for Future Development, and the final 10% will make up the Foundation Reserve.

Saga is looking to become the next big thing in crypto gaming, and while not exclusively a crypto-gaming platform, it does seem to be where most of its focus lies and where most of its customers come from.

Though, it is worth noting that through Saga any type of crypto platform could be created. Meaning its potential shouldn’t just be limited to the crypto-gaming niche.

While Saga’s full potential is yet to be realised, if they manage to deliver on their promises for the future of crypto gaming, or if the Cosmos network itself continues to grow in value, it would seem likely their best days are still to come.

Although, as with everything in business, it will require some expert management from the top. And, as we know, nothing is ever guaranteed in crypto, of course.

How to create a SAGA wallet

Step 1: Visit https://www.keplr.app/ If you already have a Keplr wallet, skip to step 4

Step 2: Download and install Keplr wallet from your mobile app store or your browser

Step 3: Open Keplr and create a new wallet or import an existing one

Step 4: In the search bar, type “SAGA” to find the token and click save.

To support the blog, consider donating SAGA here: saga1vu24gvjvrcf6q3a8euc40ugux3cdr0j3wn6m9v

Saga FAQs