Complete Guide to Sandbox (SAND) – Blockchain-Based Virtual World

As blockchain is becoming more intertangled with the gaming industry, a growing number of platforms for monetizing gaming experience is appearing. One of them is Sandbox (SAND).

Sandbox is a virtual world where users can buy, sell, and trade digital goods built on the Ethereum network. Players in Sandbox can monetize their gaming experiences using SAND, the platform’s utility token.

Founders of Sandbox

Arthur Madrid and Sebastien Borget launched Sandbox in 2011, their idea was to capitalize on the videogame industry. The gaming space presented an opportunity for them as blockchain and cryptocurrencies were barely known in social media. Their main focus was to introduce blockchain to an untapped market, creating a universe where gamers can create, share, and monetize blockchain-based assets.

Madrid and Borget are also co-founders at Pixowl. Madrid graduated with a degree in economics in 2000, and Borget got a degree in computer systems, networking, and telecommunications in 2007.

Sandbox’s Partnerships

Sandbox has over 50 partnerships, including Atari (EPA: ATA), one of the most famous companies in the gaming industry. Some of its partners are:

• SBS Game Academy, a video game education institution in Korea.
• Matic Network, a blockchain network that provides secure, scalable, and instant transactions powered by Proof-of-Stake (PoS) side chains. The company collaborates with the Sandbox team to enhance transaction speed and a better UI/UX experience on the platform.
• CryptoKitties – a blockchain-based videogame built on Ethereum and developed by Canadian studio Dapper Labs.

Technical Infrastructure of Sandbox

Sandbox consists of several components. The platform has a traditional backend running on the cloud and using Amazon Web Services (AWS) to support its web frontend. An S3 (a public cloud storage resource on Amazon) is used to store the assets of an artist before they get minted.

The protocol runs on Ethereum to record the ownership of tokens and allow you to transfer, sell, and trade your assets. Besides, it uses InterPlanetary File System (IPFS) – a protocol with a peer-to-peer network – to store all related information of ASSETS, keeping users safe from those who are trying to change the information without permission.

The platform allows its players to create digital goods called non-fungible tokens (NFTs). They can be any kind of representations they want to build, upload to the marketplace and integrate into games with Game Maker.

The main mission of Sandbox was to successfully introduce blockchain to the gaming world. Sandbox offers a decentralized virtual world and presents new opportunities for players to experience blockchain, NFTs and crypto while using a unique environment. The protocol combines Decentralised Autonomous Organisations (DAOs) and NFTs so that users can trade the assets they wish.

By using NFTs, the protocol empowers both gamers and creators with the following features:

• Digital ownership. You are the owner of your digital items even if the game suddenly shuts down or you abandon playing. With blockchain, you can tokenize and trade all your items on the protocol.
• Security. Blockchain is one of the most secure technologies available in the market. Digital games can be tokenized and traded in primary and secondary markets managed by this technology, minimizing fraud and theft.
• Cross-application interoperability. With blockchain, you can also use shared assets. Every element in the game can be used in other games that allow it, which expands the reach and adoption of these elements without confining them into a single place.

In addition, Sandbox allows you to build your 3D games for free, with the help of human-readable visual scripting tools. Its game engine is built on top of Unity. Using its Universal Render Pipeline (URP), the platform will also support mobile versions in the future, without sacrificing the quality of the game.

Core Products of Sandbox

Within the Sandbox system, you will find three core products that provide you with a friendly experience for production of User-Generated Content (UGC). Your creations are secured by a copyright ownership of UGC. These products are the following:

• VoxEdit (Voxel Editor): a 3D voxel modelling package that allows you to create and animate all kinds of 3D objects, such as people, animals, tools, and others. It allows you to export them into the Sandbox Marketplace to turn them into tradeable game assets.
• Marketplace: here you can upload, publish, and sell your assets made in VoxEdit as ERC-721 and ERC-1155 tokens.
• Game maker: you can use your assets in the game maker as well as in the game itself. Within the game, you can use your ASSETS to place a piece of LAND – a ERC-721 token that you own in the virtual world.

Sandbox Tokens: SAND, LAND, ASSETS

Sandbox has a number of tokens that have a specific function within the ecosystem. ERC-20 standard is used for the SAND, GEM, and CATALYST tokens, while ERC-1155 and ERC-721 standards are used for the storage and trading of both LAND and ASSETS.

The official token of the Sandbox platform is SAND. Based on the ERC-20 protocol, it acts as the official currency in the metaverse when you purchase goods and services within the game.

LAND is a digital asset that serves as a piece of real estate in the game. Players can build experiences on top of it. Besides, once you own a piece of LAND, you can populate it with games and ASSETS. If you combine multiple LANDs, you will form an ESTATE.

You can modify your LAND with ASSETS as you wish. You can also implement gameplay mechanics by coding your creatons with scripting nodes that give them a predefined behaviour.

The SAND tokens have a wide range of uses within the game as it is the basis for transactions in the ecosystem. Firstly, Sandbox users can customize their avatar (character), play games, buy equipment, or collect SAND during the gameplay. As stated before, they can acquire LAND and ASSETS using SAND. Secondly, SAND allows participating in the governance of the Sandbox platform as well as deciding on its future changes. As a SAND token holder, you can vote by yourself or delegate your voting rights to other players. In addition, you can stake your SAND to earn rewards on LANDS. The more SAND you stake, the more LAND you get. This is vital as it gives you Gems and Catalysts, two resources needed for the creation of ASSET.

It is also worth mentioning that 50% of all transaction fees goes to the staking pool as a reward for token holders, and another 50% goes to the Foundation. The foundation has a key role in the Sandbox ecosystem as it offers grants to incentivise quality content and game production on the platform, with over 15 game projects and 100 artists producing NFTs before its launch in 2020. In essence, the platform works as a network for several games, creating a community that combines gaming, decentralized finance, and blockchain.

The distribution of the total supply of SAND was as follows:

• 52.31% for the team,
• 27.69% for development,
• 15.38% for marketing,
• 4.62% for administration.

Sandbox Stakeholders

There are four types of stakeholders: Foundation Pool, Staking Pool, Company Treasury, and Company Reserve. These 4 approaches exist to ensure the success of TSB accruing value towards the token.

• Foundation Pool gives value to the token as the game generates revenues.
• Staking Pool is a smart contract that provides revenues to token holders. As a token holder, you can also generate extra yield if you’re an active player.
• Company Treasury represents the total numbers of SAND that is owned by the company.
• Company Reserve is the initial company reserve of $600 million SAND, around 20% of the total supply.

Sandbox IEO

The Sandbox Initial Exchange Offering (IEO) was launched in Argentina, on August 6, 2020 at 12:00 am (UTC). It closed on August 14, 2020, 6:00 am. It rolled out on the Binance Launchpad, with a public sale of $3,000,000 and a total token supply of 3,000,000,000 SAND.

During the first rounds of pre-sales in December 2019, users acquired a location within the metaverse. These locations sold out within minutes, generating over $1 million in sales. The overall value of the Sandbox metaverse may reach over $20 million.

Pros and Cons of Sandbox

There are some benefits that make Sandbox different from other similar platforms. First of all, this decentralised platform allows users to easily trade and buy products within the metaverse. Further, it guarantees secure ownership for all players and collectors. Moreover, all token holders can participate in the governance of the platform. To educate its community, Sandbox employs Ask Me Anything (AMA) mechanism. Finally, on Sandbox, creators engage constantly with their public on social media.

However, as with any other gaming platform, there are some cons to consider. Any virtual reality platform is prone to cyberattacks, data theft, and other malicious interferences. Sandbox is no exception. Governmental laws can also impact its ecosystem. Above all, the project may be outsourced to third parties, which implies the risk of failures.

Conclusion

Sandbox is one of the most promising blockchain-based virtual reality projects. Its platform will allow you to have a fun game experience while also combining the benefits of blockchain technology, decentralized finance, and NFTs creation in a single digital ecosystem. Currently, the protocol only serves to English and Korean speaking audiences, but it’s planning to expand its reach in the upcoming years.