Blockchain technology faces a significant scaling challenge that limits its broader adoption. Rollups have emerged as a promising solution, though they often require improvements in security and decentralization.
AltLayer presents an innovative approach to these issues. By leveraging advanced technologies like restaked rollups, it enhances security and accelerates transaction finality. This guide explores AltLayer's core concepts, operational mechanics, and its potential transformative impact on blockchain technology.
What is AltLayer?
AltLayer is a decentralized rollup-as-a-service (RaaS) platform that introduces a novel implementation known as Restaked Rollups. It integrates with various rollup technologies such as OP Stack, Arbitrum Orbit, ZKStack, and Polygon CDK to improve security, decentralization, interoperability, and transaction speed.
The platform offers an intuitive, no-code interface that allows developers to deploy high-performance layer-2 rollup solutions quickly. It functions both as a temporary scaling layer for Optimistic Rollups and is compatible with numerous layer-1 and layer-2 blockchains, including Ethereum, Solana, Arbitrum, and Optimism. Designed with cross-chain and cross-virtual machine compatibility, AltLayer provides a modular and adaptable scaling solution for all EVM and WASM-compatible blockchains.
The History of AltLayer
Founded in 2021 by Dr. Yaoqi Jia—former Director of Parity Asia and co-founder and CTO of Zilliqa—AltLayer is headquartered in Singapore. The team comprises professionals with extensive experience from companies like Parity, Zilliqa, and Synthetix.
Since its inception, AltLayer has garnered substantial support within the crypto industry. It successfully raised $7.2 million in a seed funding round with investments from prominent firms such as Polygon Capital, Breyer Capital, and Jump Crypto. The project has also established partnerships with other key players, including OKX Ventures, Hashkey Capital, TRGC, Primitive, and Bodhi Ventures.
How Does AltLayer Work?
AltLayer operates as a Rollups-as-a-Service (RaaS) platform, enabling users to customize and deploy their own rollups within minutes, without needing programming skills. It supports decentralized applications (dApps) and blockchain systems compatible with both the Ethereum Virtual Machine (EVM) and WebAssembly (WASM), addressing interoperability challenges in multi-chain environments.
The platform simplifies the deployment and management of rollups across EVM and Wasm runtime environments through a modular architecture. This design consists of interchangeable components, including:
- A runtime module for executing transactions
- A data availability module for storing transaction data
- A settlement module for ensuring transaction finality
Users can select their preferred runtime environment (EVM or Wasm), choose data availability layers (such as layer-1 blockchains or external solutions like Celestia), and opt for settlement layers like Ethereum or Arbitrum. This flexibility allows AltLayer's rollups to scale dynamically according to demand.
A key differentiator is AltLayer's open fraud proof mechanism. Unlike traditional rollups where only designated validators can submit fraud proofs, AltLayer allows any node to report potentially fraudulent transactions. This approach reduces centralization risks and enhances the overall security of the network.
Additionally, AltLayer introduces the concept of ephemeral rollups, which are application-specific rollups quickly created and secured by a layer-1 blockchain. These rollups can be customized for specific use cases without complex coding, used as needed, and decommissioned via the layer-1 when no longer required. The RaaS platform offers both ephemeral and persistent rollup options.
Key Features of AltLayer
AltLayer incorporates several revolutionary features that set it apart in the blockchain space.
Restaked Rollups
Restaked Rollups combine the benefits of existing rollup stacks (like OP Stack, Arbitrum Orbit, ZKStack, and Polygon CDK) with enhanced security and decentralization through EigenLayer's restaking mechanism. This innovation includes three core services:
- VITAL: Provides decentralized verification of the rollup state.
- MACH: Ensures rapid transaction confirmation.
- SQUAD: Manages decentralized transaction sequencing.
These services operate using independent consensus mechanisms, reducing reliance solely on Ethereum's security model.
Rollups-as-a-Service (RaaS)
Built on the foundation of Restaked Rollups, AltLayer's RaaS platform offers a no-code dashboard for launching customized rollups. This service empowers developers to create adaptive rollups tailored to specific requirements, significantly streamlining the development and deployment process.
The AltLayer Ecosystem
AltLayer supports a diverse range of products and services spanning decentralized finance (DeFi), gaming, cross-chain bridges, oracles, and execution sequencing. Key ecosystem components include:
Injective
Injective Protocol aims to revolutionize the financial system by offering dApps that emphasize interoperability, scalability, and decentralization. It utilizes a hybrid architecture that combines the security and immutability of proof-of-stake (PoS) blockchains with the efficiency and scalability of centralized order books, enabling high-volume transactions at lower costs.
OP Mainnet
OP Mainnet is an Ethereum layer-2 solution designed by Ethereum developers for Ethereum developers. It provides a fast, stable, and scalable blockchain that allows dApps to expand effortlessly. Built on optimistic rollup technology, it offers a minimal extension to existing Ethereum software, ensuring a seamless user experience.
EigenLayer
EigenLayer addresses liquidity and security challenges through its restaking technology. Users can leverage staked ETH to provide cryptoeconomic security for other protocols beyond Ethereum, earning protocol fees and rewards in return. The system supports natively staked ETH and liquid staking tokens like stETH, rETH, cbETH, and LsETH.
Celer
Celer enables users to access tokens and NFTs across multiple blockchain networks with a single click. Its cross-chain messaging tool allows developers to build dApps that operate on various blockchains without requiring users to navigate complex multi-transaction processes. Key products include:
- Celer IM: Leverages message bus contracts and a state guardian network to simplify the construction of dApps that communicate and operate across different blockchains.
- Celer cBridge: A decentralized asset bridge facilitating token transfers across over 40 blockchains and layer-2 rollups. As a non-custodial service, it ensures users retain full control of their assets and has processed over $14 billion in transactions.
Peti
Peti is a cross-chain liquidity protocol that addresses efficiency challenges for traders and institutional market makers. It mitigates high slippage during large cross-chain transactions by providing immediate liquidity, allowing seamless trading across chains without significant slippage losses.
FlashGPT
FlashGPT is an advanced AI assistant tool designed to reduce the burden on developers. Utilizing OpenAI's GPT language model, it offers two standout features: creating Solidity smart contracts and deploying them on layer-1 and layer-2 networks like AltLayer, Arbitrum, and Ethereum. It also assists users in deploying and customizing AltLayer Rollups.
Launched at the ETH Global Hackathon "Scaling Ethereum 2023," FlashGPT received positive feedback from the developer community and won awards from Polygon and Scroll.
WebIDE
AltLayer's WebIDE is a user-friendly web-based integrated development environment that simplifies the deployment and interaction with smart contracts on Flash Layer. It includes a contract builder for creating contracts tailored to AltLayer's rollup solutions. Users can open, edit, and deploy contracts directly within the IDE.
To use the WebIDE, navigate to the "IDE" tab in the launchpad's left panel. For deployment, go to the "Deploy & Run Transactions" section, connect your crypto wallet (e.g., MetaMask) to the Flash Layer network, select the contract, and confirm the transaction.
What is the ALT Token?
The ALT token is the native utility token of the AltLayer ecosystem, launched in January 2024. It enables holders to participate in governance voting, conduct transactions, earn rewards, and stake within the platform. Users can also restake ALT tokens on EigenLayer for additional yields, though malicious behavior may result in slashing.
Validators contributing to network security and decentralization are rewarded with ALT tokens. The token launch included an airdrop distributing 3% of the total supply to eligible users, such as NFT holders on the platform and those staking on EigenLayer and Celestia.
ALT Tokenomics
ALT has a total supply of 10 billion tokens, with 1.1 billion currently in circulation and a market valuation of approximately $560 million. The distribution is as follows:
- 5% allocated to Binance Launchpool
- 15% retained by the AltLayer team
- 18.5% held by investors
- 5% allocated to strategic advisors
- 20% dedicated to protocol development
- 15% for ecosystem and community growth
- 21.5% held in the AltLayer treasury
Latest News: AltLayer and Optimism Superchain
On February 27, 2024, AltLayer announced a partnership with Optimism Superchain. As a RaaS provider, AltLayer will simplify the process for dApp developers to customize and deploy dedicated rollups. Superchain is a scalable network of rollups built on OP Stack, featuring shared security and communication layers. This collaboration allows developers to focus on building robust dApps without managing underlying node infrastructure.
Is ALT a Good Investment?
AltLayer offers a decentralized protocol that enhances rollup security, decentralization, interoperability, and finality. Its innovative restaked rollups and RaaS platform present a promising vision for the future of scalable layer-2 solutions. However, the cryptocurrency market is inherently volatile. Potential investors should conduct thorough due diligence, research the project extensively, and consult qualified financial advisors before making any investment decisions.
How to Acquire ALT Tokens
Investors can purchase ALT tokens on both centralized and decentralized exchanges. For a seamless trading experience, consider exploring major trading pairs like ALT/USDT.
👉 Check real-time trading pairs and market data
Frequently Asked Questions
What is a restaked rollup?
A restaked rollup combines existing rollup stacks with EigenLayer's restaking mechanism to enhance security and decentralization. It utilizes services like VITAL, MACH, and SQUAD to verify states, confirm transactions rapidly, and sequence transactions decentralically.
How does AltLayer improve transaction speed?
AltLayer employs technologies like ephemeral rollups and decentralized sequencing to accelerate transaction finality. Its open fraud proof mechanism also reduces validation delays, ensuring faster processing.
What is the role of the ALT token?
The ALT token facilitates governance, staking, rewards, and transactions within the AltLayer ecosystem. Users can stake or restake ALT to earn yields and participate in network security.
Can I deploy a rollup without coding experience?
Yes, AltLayer's RaaS platform provides a no-code dashboard for customizing and deploying rollups quickly. It supports both EVM and WASM environments, making it accessible to non-developers.
What blockchains are compatible with AltLayer?
AltLayer is compatible with multiple layer-1 and layer-2 blockchains, including Ethereum, Solana, Arbitrum, Optimism, and any EVM or WASM-based networks.
How does AltLayer ensure security?
Through restaked rollups, decentralized fraud proofs, and independent consensus mechanisms, AltLayer enhances security beyond traditional rollup solutions. Its partnership with EigenLayer also adds cryptoeconomic safeguards.