Ronin Switches from Sidechain to Ethereum Layer-2

Blockchain Migration Strategy

Sky Mavis launched Ronin four years ago to support Axie Infinity, the blockchain game that kicked off the “play to earn” craze of 2021. Ethereum, the main blockchain platform, has struggled to scale due to expensive transactions (gas fees) and long processing times. Ronin was built as a sidechain to meet the need for a faster, more efficient network for blockchain games. It runs parallel to Ethereum but processes transactions independently. This has reduced costs and increased transaction speeds, allowing millions of people to play Axie Infinity and other games like Pixels, Ragnarok: Monster World, and Kaidro.

However, the blockchain world has changed a lot in recent years. Ethereum's upgrade roadmap has made great strides, most notably with the Dencun update in March 2024, which reduces transaction costs on Layer-2 solutions and makes them more scalable. Ronin is a successful gaming platform, but its sidechain model makes it difficult to connect to the larger Ethereum ecosystem. Moving to Layer-2 is seen as a smart move that allows Ronin to take advantage of Ethereum's technical improvements and grow beyond gaming.

The significance of technology migration

Ronin will utilize cutting-edge technologies like zkEVM (Zero Knowledge Ethereum Virtual Machine) developed on the Polygon Chain Development Kit when moving from sidechain to Layer-2. This brings several important technical benefits:

Ronin said transactions on the network will be up to 12 times faster after the switch. This is important for gaming applications, which need transactions to be processed almost instantly to ensure players have an enjoyable time.

Ronin will benefit from the security and decentralization of the Ethereum mainnet because it is Layer-2. Transactions on Ronin will be verified and stored on Ethereum, which will make it more secure than sidechains, which have had security issues (like the Ronin Bridge hack in 2022).

This change makes it easier for Ronin to work with DeFi protocols, NFTs, and dApps within the Ethereum ecosystem. This gives Ronin the opportunity to grow beyond just a gaming platform; it can also become a multi-purpose ecosystem that supports decentralized finance applications and cross-blockchain transactions.

Ronin can process thousands of transactions per second with zkEVM technology, far exceeding the capabilities of current sidechains. This is important because Ronin currently has 1.4 million daily active addresses and is expected to add billions more users in the future.

Ronin will also use the Proof of Distribution (PoD) mechanism, a new way to distribute staking rewards, to incentivize developers and build a stronger community. Instead of just rewarding validators who do nothing, PoD will focus on active developers who help the ecosystem grow. This will encourage new ideas and increase competition.

Conclusion and evaluation

Ronin’s move from sidechain to Ethereum’s Layer-2 is a strategic move, marking its return to Ethereum after four years of independent development. With zkEVM technology, Proof of Distribution mechanism, and support from major partners, Ronin not only strengthens its position in the blockchain gaming sector but also opens up the potential to become a multi-purpose ecosystem deeply integrated with Ethereum. Despite many challenges, this move shows Sky Mavis’ long-term vision in building a sustainable platform that meets the needs of billions of users in the future.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.