AltLayer (ALT): Simplifying Rollup Development

The proliferation of Layer 2 solutions, including rollups, has emerged as a response to Ethereum's high transaction costs and extremely slow finality times of up to 20 minutes. Rollups have gained popularity due to their outstanding cost-efficiency and scalability as compared to Layer 1 transaction mechanisms. However, the extensive diversity of rollup solutions and SDKs has led to compatibility issues. Many rollups also don't provide the requisite security and finality for specific decentralized application (DApp) types.

AltLayer (ALT) is a platform designed to tackle these challenges head-on. It offers existing rollups enhanced security, improved finality and decentralized sequencing. Additionally, AltLayer simplifies the rollup creation process by providing a user-friendly interface that lets anyone launch new rollups in a matter of minutes without any coding.

In essence, AltLayer presents a solution in which rollups cater to a wide array of needs and applications, ensuring that fast finality, robust security and decentralization are no longer pain points for DApp operators who utilize rollups.

Key Takeaways:

• AltLayer is a decentralized protocol that allows users to launch fully functional Layer 2 rollup solutions in minutes, with no coding required.

• It also provides a stack of tools to help improve the security, finality and decentralized sequencing of existing rollup solutions.

• AltLayer’s modular approach lets users deploy rollups that combine different run time, data availability and settlement layer types.

What Is AltLayer?

AltLayer (ALT) is a blockchain platform built specifically to target rollups. With AltLayer, you can launch high-performing Layer 2 rollups without any programming required. The platform also provides tools to enhance existing rollups with improved verification, decentralized sequencing and faster finality.

AltLayer’s solution for existing rollups is Restaked Rollups, a product that addresses three critical issues — insufficient number of validators on Layer 2, slow finality times on Ethereum Layer 1 and the reliance on a centralized sequencer node.

Numerous rollup solutions, both optimistic and zero-knowledge (ZK), have been developed using various SDKs such as OP Stack, Arbitrum Orbit, ZK Stack and Polygon CDK. Many of these rollups are smaller, application-specific solutions designed for specific niches or even individual apps. Due to their small size, these customized rollup platforms face challenges in ensuring decentralized verification. The key problem here is that they often don’t have a large enough set of validators to ensure high levels of security. AltLayer’s suite of tools addresses this issue, along with other common problems faced by rollup platforms. 

Additionally, AltLayer helps existing rollup platforms deal with the issue of Ethereum’s lengthy finality times, which can range from 13 to 20 minutes. The slow finality on Layer 1 can pose significant issues for certain latency-sensitive applications, such as gaming or social media.

The third fundamental problem that many rollups face is their reliance on a single, centralized sequencer, a vital network actor responsible for coordinating block processing activity. AltLayer is designed to tackle this problem by offering decentralized sequencer network services. The sequencers are sourced via the EigenLayer Ethereum restaking protocol.

In addition to enhancing existing rollups, AltLayer facilitates the rapid launch of various types of rollups in a matter of minutes, and requires no coding at all. Using AltLayer's Rollup-as-a-Service (RaaS) feature, rollup networks can be launched in less than 5 minutes, offering anyone a streamlined solution for deploying customized Layer 2 solutions.

How Does AltLayer Work?

The AltLayer stack for rollups is designed with modularity as a core principle. This modular architecture allows users to choose from various run-time layers, such as those based on EVM or WebAssembly (Wasm); data availability layers, e.g., underlying Layer 1 or external options like Celestia; and settlement layers, e.g., Ethereum or Arbitrum. AltLayer rollups also feature high elasticity and are capable of scaling dynamically to meet fluctuating demand.

To address compatibility concerns, which are particularly relevant for multichain applications, AltLayer facilitates the management and deployment of rollups based on both EVM and Wasm, the two dominant blockchain execution environments.

AltLayer’s implementation of fraud proofs lets any node notify the network of potentially fraudulent transactions, in contrast to most other rollup platforms, on which only certain network actors can raise a flag. This enhances the overall security of operations on an AltLayer-based rollup.

AltLayer’s security is also boosted by its use of tiered finality. This is achieved through the use of Beacon Layer, which acts as a decentralized sequencer, providing an interlinking layer between the rollups and Layer 1. Block finalization is split into three tiers to ensure the utmost accuracy in confirming transactions and maintaining the integrity of the blockchain network.

Another core functionality offered by AltLayer is that of disposable, adjustable and highly scalable flash layer rollups. Platform users can leverage these flash layer rollups for temporary, high-demand scenarios, such as large-scale airdrop campaigns or token launches. Meanwhile, persistent rollups, another rollup type offered on AltLayer, cater to use cases requiring consistent long-term performance.

AltLayer Key Features

Restaked Rollups

Restaked Rollups, AltLayer's product for enhancing existing rollup platforms, are designed to offer improved decentralized verification, faster finality and decentralized sequencing processes within rollups. They utilize the EigenLayer Ethereum restaking solution, which enables functionality enhancements across any rollup on AltLayer regardless of its execution engine type. Restaked Rollups are made up of three Actively Validated Service (AVS) layers, each of which is enabled by a modular component within the AltLayer stack.

VITAL for Decentralized Verification

VITAL is Restaked Rollups’ AVS layer for decentralized verification. It helps AltLayer-based rollups access a network of validators that verify transactional data proposed by a network of nodes known as SQUAD (see below). VITAL is particularly useful for small, application-specific rollups that often lack access to large validator networks.

MACH for Faster Finality

MACH is the AVS layer that significantly improves transaction finality on AltLayer rollups. This is a critical component for DApps that require speedy final settlement of transactions. MACH supports both ZK and optimistic rollups, and reduces the finality time from Ethereum's standard 13–15 minutes to less than 10 seconds.

SQUAD for Decentralized Sequencing

The Restaked Rollups component for improving sequencer decentralization is called SQUAD. On most rollups, the sequencer is a single entity, which raises concerns concerning reliance on one network actor to collate transaction blocks. The SQUAD layer is essentially a network of nodes that allows anyone to join as a validator, in order to act as part of an AltLayer rollup’s decentralized sequencer network.

Rollup-as-a-Service (RaaS)

RaaS is AltLayer’s product for launching new rollup platforms. At the base level, RaaS uses the same technologies that power Restaked Rollups. AltLayer provides a no-code dashboard to help you launch highly customizable rollups without needing to use any programming.

The rollups spun out with RaaS are highly versatile and modular, with the ability to combine different run time, data availability and settlement layers.

What Is the ALT Token?

AltLayer's native cryptocurrency is the ALT token. It was officially launched on Jan 25, 2024. Concurrently with the launch, AltLayer initiated a month-long airdrop campaign — Airdrop Season One.

During the airdrop, 300 million tokens, or 3% of the total supply, are distributed to eligible users. These recipients include certain NFT holders on the platform, as well as users engaged in staking and restaking activities on partner platforms, such as EigenLayer and Celestia.

The ALT token serves four core functions within the AltLayer ecosystem:

1. Staking — ALT tokens are utilized to provide an economic stake within the network, alongside restaked assets from the partnering EigenLayer platform. This stake can be subject to slashing in cases of detected malicious behavior.
2. Governance — ALT token holders can participate in governance decisions, exercising their voting rights on critical matters concerning the direction and rules of the platform.
3. Protocol Incentives — Validators contributing to AltLayer network security and decentralization earn ALT tokens as a reward for their services.
4. Transaction Fees — Users pay for intra-network services in ALT tokens.

ALT is a supply-capped cryptocurrency with a maximum and total supply of 10 billion, of which 11% (1.1 billion) represents the token’s current circulating supply.

ALT’s total supply distribution shares are shown in the table below.

AltLayer Token Price Prediction

As of Feb 15, 2024, the ALT token is trading at $0.39, which is about 14.8% lower than its all-time high of $0.4611, recorded on Jan 29, 2024, and 41.8% higher than its all-time low of $0.2769, registered on the day of the token’s launch (January 25).

The long-term outlook for ALT is bullish, with PricePrediction forecasting it will trade at an average of $0.80 in 2025 and $5.09 in 2030, while DigitalCoinPriceexpects the token to average $1.03 in 2025 and $2.98 in 2030.

Is AltLayer a Good Investment?

ALT is still in its early days on the market, but the token has some distinct features that already point to its great potential. You might consider investing in ALT based on the following factors:

1. The AltLayer platform offers exceptional scalability and finality, making it particularly well-suited forgaming applications. Gaming represents a rapidly growing segment within the blockchain industry, and AltLayer’s platform is well-positioned to capitalize on the opportunities in this booming niche. AltLayer's ecosystem includes the Turbo rollup framework, a solution specifically optimized for applications like blockchain gaming, which often demand near-instant finality and high scalability.

2. AltLayer has the potential to emerge as a key player in the lucrative NFT transaction processing space. It facilitates rapid settlement times for NFT transactions and can handle large-scale NFT campaigns. Recently, AltLayer showcased its NFT processing capabilities through the AltLayer OG Badge NFT Drop, an event aimed at highlighting its efficiency and capabilities in facilitating large-scale, resource-intensive NFT management operations.

3. The current trend in the industry is toward DApps that utilize multiple chains and protocols for their functionality. AltLayer stands out as an ideal environment for rollups that support multi-chain connectivity. Since the platform’s rollups can utilize a diverse range of runtime engines, data availability layers and settlement layers, this flexibility positions AltLayer as an attractive option for developers seeking to capitalize on the growing demand for multi-chain functionality.

4. Another promising feature of AltLayer is its RaaS service. Launching your own rollup networks in minutes without any coding required will undoubtedly be very popular. While ordinary crypto hobbyists are unlikely to utilize RaaS, it holds significant appeal for developers and DApp operators. Using RaaS offers these segments a valuable opportunity to reduce the costs and time associated with rollup development. Moreover, they can leverage the platform's highly flexible customization options to launch virtually any rollup configuration they desire.

Where to Buy ALT

You can buy ALT on Bybit as a USDT Spot pair or via USDT Perpetual contracts. If you don’t have an account on Bybit, you can easily register for one and trade hundreds of cryptocurrencies, both in the Spot and Derivatives markets.

In celebration of ALT’s listing on Bybit as a Spot pair, Bybit has launched two events when whereby you can earn from a 100,000 USDC prize pool. 

The first event has a prize pool of 70,000 USDC and runs from Feb 18, 2024, 10AM UTC – Mar 1, 2024, 8:59AM UTC. All you have to do is to deposit at least 350 ALT or deposit 100 USDT to buy 100 USDT worth of ALT to earn 30 USDC as a new Bybit user or 5 USDC if you are a current user. 

The second event is from Feb 19, 2024, 8AM UTC – Mar 4, 2024, 11:59PM UTC. You will have to trade 200 USDT worth of ALT on Spot to earn from a 30,000 USDC prize pool. The more you trade, the larger your share earned from the pool, capped at 1,000 UDSC per person.

Closing Thoughts

AltLayer stands out as a pioneering force, bringing about a transformative and highly efficient paradigm in the realm of rollup implementation. Unlike conventional rollup solutions that often grapple with modularity challenges, AltLayer takes a giant leap forward by offering exceptional flexibility and modularity. It therefore emerges as a comprehensive solution, not just addressing the existing challenges in the rollup space but providing a holistic and accessible approach to rollup implementation. By seamlessly combining flexibility, security and ease of deployment, AltLayer is pioneering a new era in the blockchain landscape, offering an optimized and user-centric experience for developers and users alike.

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