What is MagnaChain?
MagnaChain intends to be the first public blockchain platform to offer the stability, rapid transaction times, and security needed to facilitate true gaming experiences for users by utilizing a new innovative consensus mechanism called Virtual-Hash Proof of Stake (VH-PoS) and its native currency Magna (MGC).
According to the whitepaper, MagnaChain will
allow for complex games and dApps and not just collectible trading games, to run on the blockchain
support virtually unlimited numbers of users and creators
provide unmatched security and uptime by leveraging decentralization and VH-PoS
make game development for the blockchain widely accessible with SDKs
create a transparent marketplace for gamers to buy, sell, and trade digital assets
replace dependence on game publishers and platforms with creator/ user autonomy
Smart Contracts
Written in Lua, one of the gaming industry’s most easy-to-use and well-known programming languages, again accentuating MagnaChain’s desire to make its blockchain and ecosystem as simple as possibly for dApp developers to join. The LUA virtual machine and language is already familiar to game developers and easy to use and expand. The writing of smart contracts is closer to the development of video game backends, than something unknown to developers.
VH-PoS
To achieve security and practicality, MagnaChain has adopted PoS and from this developed the Virtual Hash Proof of Stake (VH-PoS) consensus algorithm, based upon the improvements PoS needed. The unique Virtual Hash PoS (VH-PoS) mining algorithm does not rely on professional mining machines, nor does require large power consumption, which is more environmentally friendly. Thus, compared with the traditional POS mining algorithm, VH-POS combines the deterministic random verification algorithm based on the POS algorithm.
Side Chain technology
The user's virtual assets can be freely transferred between multiple chains. Relying on the built-in concurrent side-chain technology of MagnaChain, developers can easily generate and merge multiple side-chains. Even for one application, one function module can generate separate sidechain, and multiple side-chains can process user requests concurrently to improve the network, also increase the processing speed. Miners can easily mine on the main chain and multiple side-chains in parallel to improve mining revenue. The greater the volume of trading, the higher the income of miners.
Magnachain SDKs
SDKs are constructed so that game developers don't have to be experts in blockchain. They have multiple SDK’s including Unity, Unreal, Egretia and others on the way to cater to all game developers. This will lower the barrier-to-entry threshold for current "real-world" game developers and give them the opportunity to monetize their game on the blockchain without paying huge amounts of fees to publishing and distribution partners, greatly enhancing their overall P&L. This also gives players the ability to ‘play-to-earn’ for the first time in the history of the game industry, as they earn cryptocurrency via the digital assets they acquire and earn
More in depth information on the technology can be found in their technical whitepaper
High concurrent processing speed: The latest test shows that the Transactions Per Second (TPS) of MagnaChain reaches 13313 under the combination of 1 mainnet and 4 side-chains. According to them , "Theoretically the TPS can extend to one million+ when we increase the number of side-chains" but let's be real, we are yet to see any blockchain achieve such high tps.
High stability: MagnaChain adopts layered architecture and independent modules to ensure stable system operation.
High security: MagnaChain uses proprietary VH-PoS consensus protocol to maintain the system security. Compared with the traditional POS mining algorithm, VH-POS combines the deterministic random verification algorithm based on the POS algorithm. The final blocker is determined by a random number calculation of the coin-days in the miners and the block information of the previous 1000 blocks. This increases the difficulty of the attack and makes block generation more secure.
High accessibility: MagnaChain adopts Lua virtual machines and various smart contract templates, making it easy and efficient for developers to build blockchain apps and games
MagnaChain faces stiff competition in both the traditional native blockchains like Ethereum , EOS, Layer 2 Blockchain solutions such as Loom Network, Eon Protocol and other game projects . Below is a comparison infograohic by MagnaChain with some of its competitors.
The Magnachain mainnet is ready for launch and is a new public blockchain primarily devoted to the
gaming industry and its code has been open sourced and made publicly available on their github
Those that are not too tech savvy can read this code review done by incodewetrust. Andre Cronje from Crypto Briefing also did a code review which can be found HERE and i will also link the team's response to this particular code review HERE .
Developers can access the dedicated page filled with resources that can teach and help in building apps and games on MagnaChain.
Fun Fact:
The mainnet was actually completed in q4 2018,but the team decided to do an IEO to further engage the community and they found it was very hard for exchanges to run IEOs with their native token, so they kept it linked to an ERC20 for ease of use during the public IEOs . There will be a token swap after the IEO has completed later.
2016
Prototype Development
2017
Q2 - Prototype Test, Addition of Smart Contract
Q4 - Structure Updated, Addition of Side chain
2018
Q2-Q3 - Launch of Test Chain
Q4 - Code Open Sourced
2019+
Mainnet Launch , Expand the Worldwide Support Centers , 1000+ Games/dApps Go Live
Roadmap after their mainnet launch is pretty short although granted they've been working on the project since 2016. Would have loved to see an in depth roadmap for at least the next two years. With mainnet ready and code published, assuming they hit their hard cap of $4.5m, the money be spent on incentivizing developers to come to the network , marketing and further developing the mainnet by adding more features.
Ticker: MGC
Total Supply: 4,000,000,000 (2,600,000,000 Pre-Mined)
Token Price: TBA
% of Tokens sold: 19.5%
Softcap: UNKNOWN
Hardcap: $4,500,000 (Previously $20m)
Country: SINGAPORE
Unsold Tokens: BURNT
The hard cap of $4.5m is low enough that it wont scare potential investors especially in this current bear market. Abut 65% of total token supply is premined with a further 30% of the premine tokens being sold to investors. The remaining 35% of total supply is reserved for mining. 70% of the premined tokens will be retained by the company for various purposes such as marketing, reserves, incentive programs etc.
Team: 24 months
Advisors: 12 months
Seed: 9 months
IEO: None
Developer Incentive Programs & Marketing: 12 months
Reserves : 18 months
Note: All non IEO tokens are locked for first 30 days of listing
Gas: Magna (MGC) will function the way “gas” functions on Ethereum blockchain i.e used to deploy games and setup smart contracts. With every transaction on a dApp, the developers will need to have MGC available to fund that transaction, which will be paid to miners to validate it. dApp developers will be able to create their own tokenized ecosystems on MagnaChain i.e. game developers may wish to facilitate in-game transactions between users and utilize MGC tokens as an in-game currency.
Mining Rewards: As this is a proof of stake based consensus blockchain, miners will get rewarded with MGC from transaction fees for providing hash power and validating transactions in the network.
Currency: Game developers can utilize MGC as an in game currency for their dApps and games.
Storage: MGC Compatibility with hardware wallets such as Ledger, Trezor and other future solutions for longterm storage of both NFT’s and fungible tokens.
Fundraise: MGC could potentially be used as a way for game developers to raise funds for the company or specific game or dApp
Token usecase is similar to other blockchains such as Ethereum and just like Ethereum, it will mostly appreciate in value or become valuable if there are actual users on the network making transactions or using dapps developed in the network. With so many other blockchains already doing similar things, it will be pretty tough to convince developers to switch to this chain instead of the popular chains like Tron, EOS etc with much more awareness and money to spend.
Unreal Engine – MagnaChain and Epic games have partnered, and will both be on the MagnaChain and Unreal Engine. They seek to provide game developers with a blockchain development solution.
Egretia – MagnaChain has partnered with the world’s first HTML5 blockchain platform Egretia. The two companies seek to provide game developers with game technology solutions, and create a blockchain game ecosystem.
Korea Mobile Game Association – MagnaChain has partnered with KMGA to assist the KMGA members in utilizing the MagnaChain public blockchain to maximize their revenue and growth opportunities in the newest frontier of the global gaming industry.
Blockmason – MagnaChain is partnering with Blockmason in order to reduce barriers faced by game developers and gamers. They want to create a healthier, more sustainable gaming ecosystem for all parties.
Full list of partners can be found HERE
Hal Bame – CEO of Magna Chain. Was formerly in Ex Senior Management at Sony Playstation. Has over 15 years of international video games, technology and Blockchain industry.
Jinsong Zhang – CTO of Magna Chain. 10+ years of experience in game development.
Peiji Guo – CMO of Magna Chain. Has over 20 years of experience working in high-level marketing and strategy roles. Worked as a senior manager at Blizzard and 2K Games
Nizam Ismail – Legal departments of Magna Chain. Former Deputy Director and Head of the Market Conduct Policy Division of the Monetary Authority of Singapore.
Sheng Guo – VP of Business Development. Has worked for Ubisoft, The9, and other gaming companies. Worked in game operations, business development, project management, R&D management, and investment management.
Brian Evans – Founder, CEO at BDE. Founder of Influencive
Alex Nagayama – Representative of RAD Gametools, Country Manager for Activision, worked as Director of Sales/Marketing for EA
Etiënne vantKruys – Director of Token Research Group
Gabby Dizon – Chairman and Co-Founder of Alto.io, Advisor to MagnaChain.co, CEO of Altitude Games
Hard cap got reduced from $20m to $4.5m which is a good thing (especially in this bear market) as people generally like small hard cap projects and this new cap certainly falls in the low hard cap sector.
Mainnet is ready to launch at any time and they plan to do so in the coming days/weeks and code has been made open source on their github. This is all before their final token sale which is very refreshing to see in this space. Potential investors can take a look at the code and play with it to decide for themselves if this is worth investing in.
They have a dedicated page for potential developers to get useful resources and information on building, deploying and managing their games, dApps or marketplace on MagnaChain blockchain. Basically most of the infrastructure is built already , they just need developers to come in and build on the infrastructure which would bring in users to the network.
There was apparently no private sale and about $2.3m out of the $4.5m hard cap was raised in seed round which gives them some runway to further develop the project as they prepare to complete their token sale.
The team and some of the advisors (Mr. Nagayama)have pretty good experience in game development.
MagnaChain is entering a really saturated and competitive space. They will have to prove their advantages over other chains to be able to gain developers , users and more importantly adoption.
There are currently no publicly available dApps or games to play with to see what the real world use case and experience is like though its being worked on in partnership with iPeoples and also Funblock game is being built on top of MagnaChain.
The vesting of the tokens listed above will not be implemented in a smart contract instead they will most likely be implemented by cold storage & dedicated hot wallet / manual distribution, to mitigate any issues with public libraries being wiped out, hacks etc.
They will be doing an IEO on bitforex exchange on May 20 2019 which should help in spreading knowledge about the project and raising the final funds needed to complete their sale.
WEBSITE
TELEGRAM
TWITTER
MEDIUM
Disclaimer
This analysis is based on information that is currently publicly available in the White Paper, Website and Team . The above information is not financial investment advice. Please do your own research before making investment decisions. This information is for educational purposes only. I have not personally invested in MagnaChain.
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