Axie Infinity is one of the most successful Play To Earn games in the Crypto market. Ronin Network was considered the main engine of Axie Infinity’s success at that time. So what’s special about Ronin Network? Let’s find out with Weakhand in this article.
To better understand Ronin Network, people can refer to some of the articles below:
- What Are Sidechains? Sidechains Solution Overview
- What is Polygon (MATIC)? Polygon Cryptocurrency Overview
- What is Axie Infinity (AXS)? The Game That Started the Play To Earn Movement Exploding
Overview of Ronin Network
What is Ronin Network?
Ronin Network is an Ethereum sidechain researched and built by Sky Mavis (the company behind the development of the game Axie Infinity). Ronin Network is the only blockchain proven to be able to scale a game to accommodate millions of daily active users and has processed over $4B USD in NFT trading volume.
What is Ronin Network?
Ronin Network optimization enables transactions to be carried out at high speed and negligible fees allowing millions of in-game transactions to occur seamlessly making it the top choice for web3 games.
What is Sidechain?
Sidechain is a separate blockchain that runs independently of Ethereum and is connected to the Ethereum Mainnet by a two-way bridge. Sidechains can have their own block parameters and consensus algorithms that are often designed to be able to process transactions more efficiently.
However, a Blockchain using a sidechain involves trade-offs because it does not inherit the security of Ethereum. Unlike Layer 2 scaling solutions, sidechains do not post state changes and transaction data back to Ethereum Maint.
The former Polygon Network is a good example of a sidechain. While popular Ethereum scaling solutions include Optimistic Rollups such as: Arbitrum, Optimism,… or Zero-knowledge rollups such as: Zksync,…
Relationship between Axie Infinity & Ronin Network
Ethereum is not built for gaming. The game requires fast and cheap transactions to scale and facilitate the millions of transactions that take place daily.
High transaction fees and slow speeds limit Axie Infinity’s ability to attract new players and keep existing players on the platform. To solve this problem, Sky Mavis launched Ronin Network in February 2021 as a more suitable solution to build and develop Axie Infinity.
Relationship between Ronin Network & Axie Infinity
Initially, Loom Network was known as a solution considered by the team to reduce congestion and high transaction fees on the Ethereum network. However, Loom Network cannot customize and overcome the problem that Axie Infinity encountered when deployed on Ethereum. Ronin Network is a perfect solution that allows users to exchange assets seamlessly with high speed and cheap transaction fees. This was demonstrated with the explosion of Axie Infinity in the summer of 2021 with the smooth processing of millions of transactions per day.
Ronin Network’s Mechanism of Operation
Ronin initially uses the Proof of Authority (PoA) consensus mechanism – a reputation-based consensus algorithm in which Validators are selected by Sky Mavis and the community to validate transactions and maintain the network.
However, the PoA consensus mechanism faces some disadvantages such as being less decentralized because it only relies on a group of Validators to validate and maintain the network. Therefore, to increase decentralization, Ronin Network has integrated Delegated Proof of Stake (DPoS) into Validator selection, allowing anyone who holds a certain amount of RON Tokens to become a Validator of the network. This gives Validators on Ronin Network greater responsibility in creating and validating transactions and protecting the network.
Ronin Network Ecosystem
Although the Ronin Network ecosystem is not yet completely complete, it still has important pieces to serve the development of games built on Ronin Network. Here are some popular projects:
Ronin Network ecosystem
Axie Infinity
Axie Infinity is a Play To Earn game released by Sky Mavis built on Ronin Network. Players participate in collecting and breeding game characters called Axie. These Axie Pets can be bought, sold and traded on the Axie NFT Marketplace and the project charges 4.25% per transaction on the marketplace.
It is no exaggeration to say that Axie Infinity is the most successful game project in the Crypto market ever. With a peak period of 2.7 million players and a revenue source of up to several million dollars daily, this is probably a number that will be difficult to break in the near future.
Ronin Bridge
Ronin Bridge is a bridge used to transfer tokens between the Ethereum chain and Ronin Network. This is a multi-signature (multi-sig) bridge which means it requires the approval of multiple bridge operators before a transaction can be performed.
The withdrawal process on Ronin Bridge is separated into methods according to each level corresponding to the overall value of the transaction.
Classify withdrawal volume by each level
This is a table regulating the amount of withdrawals for each level:
- Tier 1: Requires automatic approval from 70% Validator.
- Tier 2: Requires automatic approval from 90% Validator.
- Tier 3: Requires automatic approval from 90% Validators and also manual approval from reviewers.
In addition, Ronin Bridge also stipulates an initial daily withdrawal limit of $50M USD for total withdrawal volume.
Ronin Block Explorer
Ronin Block Explorer is a platform that allows users to access information on the Ronin Network blockchain in real time, such as transactions, blocks, addresses, contracts,…
For example: Users can use Explorer to review transaction history, search for user addresses,…
Ron Staking
Ron Staking is a platform where RON token holders can choose a Validator to delegate their RON. They can manage their stake and receive rewards from staking their RON tokens.
Katana Dex
Katana is a decentralized exchange (Dex) that allows users to trade tokens within the Ronin Network ecosystem. Currently, Katana only supports 5 types of tokens including: RON, WETH, AXS, SLP and USDC.
Some key features on Katana include:
- Swap: Users can trade between ERC 20 token pairs and 5 types of tokens as I mentioned above.
- Liquidity Pool: Users can participate in providing liquidity for ERC 20 tokens and earn trading fees and additional rewards of RON tokens.
- Farming: Users can farm RON tokens by staking LP tokens.
- Analytics: This is where users can check information about tokens in the Ronin Network ecosystem such as: Liquidity, Volume, Price as well as transaction history on the platform.
MetaLand
Recently, MetaLand was launched on Ronin Network. MetaLand is an NFT Lending platform that allows users to use NFTs as collateral to borrow WETH. The launch of MetaLand not only gives players more choices in the trading process, but also increases liquidity for all NFTs in the Axie Infinity ecosystem.
Tokenomics
Basic information about Ronin Network tokens
- Token Name: Ronin Network
- Ticker: RON
- Blockchain: Ronin Network
- Contract: 0xe514d9deb7966c8be0ca922de8a064264ea6bcd4
- Token Type: Utility, Governance
- Total Supply: 1,000,000,000
Token Allocation
RON Token Allocation
Token Release
RON Token Release
RON tokens are unlocked after 9 years with a monthly unlock schedule from January 27, 2022.
Token Use Case
RON token has some of the following benefits:
- Pay transaction fees within the network.
- Staking to become a Validator of the network.
- As a reward for Validators participating in network validation.
summary
Gaming has always been an area that receives the attention of the community and major VCs in the Crypto market. With the strong development of Ronin Network and most recently the launch of MetaLand, it is a significant stepping stone to help Axie Infinity continue to develop and affirm its position in the Crypto market. Above is all the information I want to provide about Ronin Network. I hope everyone has received interesting knowledge.
