Project name: AltLayer

Project Type: Rollup, Restaking

Token symbol: $ALT

Cryptocurrency Ranking: 161

Market value: 572 million

FDV (fully diluted valuation): 5.19 FDV

Circulation supply: 1.1 billion (11%)

Maximum supply: 10 billion

opening words

In the space of Ethereum scaling solutions, Rollup has emerged as a key innovation, offering a promising way to alleviate the network’s scalability challenges. By aggregating transactions off-chain and efficiently adding them to the Ethereum blockchain, Rollup not only increases the number of transactions the network can handle, but also maintains the security and integrity of the main layer. This process has played a significant role in enhancing Ethereum’s ability to handle a wider range of dApps. As it stands, eight of the top ten Ethereum scaling solutions are Rollup.

Source: BinanceResearch

Within the scope of Rollup technology, two main categories stand out: optimistic (Optimistic) Rollup and zero-knowledge (zk) Rollup. Each provides different transaction verification methods to meet different needs within the developer community and dApp ecosystem.

The emergence of Rollup-as-a-Service (RaaS) providers marks an important milestone in this area, simplifying the deployment of customized Rollup solutions. This advancement enables projects to take advantage of Rollup’s strengths—customizability, scalability, and efficiency—without requiring deep blockchain infrastructure expertise.

As we examine the current state and future prospects of Ethereum scaling, the role of Rollup and RaaS providers is undoubtedly central in promoting innovation and accessibility within the blockchain space. This article will take a closer look at these developments, providing insights into how Rollups work, why they are important, and what they might mean for the future of Ethereum. In particular, we will spotlight AltLayer and its role in this growing project, highlighting its innovative solutions and contributions to making Ethereum more scalable and accessible to everyone.

The rise of Rollup-as-a-Service (RaaS)

Rollup-as-a-Service (RaaS) is becoming a key solution for developers looking to leverage the scalability and efficiency of blockchain technology without the complexities associated with traditional deployments on Ethereum Layer 1 or even Layer 2 networks.

Let’s start from the beginning. Today, developers seeking to deploy a dApp have several options, each with their own tradeoffs:

● Deployed on Layer 1 blockchain: provides strong security and a rich ecosystem, but faces high costs and scalability issues due to limited transaction space.

● Deployed on Layer 2: Offer lower fees and better scalability, but may encounter rising costs and uncertain market acceptance as they become more popular.

● Appchain deployment: Creating an application-specific blockchain provides customization and flexibility, but brings security and liquidity risks.

● Own Rollup deployment: Launching a dApp on a customized Rollup brings scalability, security, and customization without competing with block space, potentially earning ongoing revenue through transaction fees. However, launching your own Rollup may not be suitable for every type of dApp. Some may benefit more from joining the larger liquidity pool provided by an existing Layer 1 or Layer 2.

- The role of RaaS

The RaaS platform gives developers the ability to launch their own Rollups by providing the following support:

● Technical Support: Simplify the deployment process with tools and services tailored to project needs, including data storage, transaction monitoring, and no-code deployment options.

● Scalability and cost-efficiency: Enabling scalable and efficient blockchain solutions without the need for in-depth technical knowledge, thereby promoting innovation within the ecosystem.

● Value capture: Provide a mechanism for projects to generate revenue through transaction fees, which can be shared with RaaS providers.

Source: Binance Research

AltLayer joins this RasS group, and at the same time it brings greater room for expansion through the introduction of Restaked Rollups. In theory, this marks a big step toward addressing the decentralization, security, and interoperability challenges associated with specific application Rollup. Here's how they achieve this:

● Decentralized sorting: Provide a democratic and secure framework that complies with the principles of decentralized Web3.

● Ensure state correctness: Use Ethereum’s trust network to solve security issues.

● Achieve faster finality: Alleviating the problem of slow finalization times of Ethereum transactions, which is critical for latency-sensitive applications.

Taken together, by providing developers with the tools to deploy customized, efficient, and secure Rollups, these RaaS services are paving the way for a more scalable and user-friendly blockchain ecosystem that meets the diverse needs of the developer community and their dApps. .

AltLayer Project Overview

AltLayer is a decentralized Rollup-as-a-Service (RaaS) platform. It enables developers to create scalable Layer 2 solutions using its flexible, modular design. AltLayer works seamlessly across different chains and virtual machines. It has established partnerships with major players such as EigenLayer and Celestia. and established an ever-evolving and expanding ecosystem, building a network of integrations and services designed to support dApp developers.

- Basic support and strategic partnerships
AltLayer is led by Dr. Yaoqi Jia, who previously led Parity Asia and helped launch Zilliqa, as its Chief Technology Officer. The team includes senior blockchain experts and top researchers with experience in Parity, Zilliqa and Synthetix.

AltLayer has successfully raised $14.4 million in a strategic funding round led by Polychain Capital and Hack VC. The round received significant funding from prominent figures including former Coinbase CTO Balaji Srinivasan, Circle co-founder and USDC architect Sean Neville, Ethereum co-founder and Parity Technologies CEO Gavin Wood, and Messari founder Ryan Selkis. contribute.

Additionally, AltLayer’s collaborations with major projects such as EigenLayer and Celestia, as well as its growing ecosystem, establish a network of integrations and services designed to empower dApp developers.

Source: AltLayer

- Core features and design

AltLayer’s Rollup-as-a-Service platform has three main components:

Heavy Collateral Rollups

1) Re-staking Rollups (Restaked Rollups)

The core of AltLayer’s innovation is its Restaked Rollups, which includes three key services, namely Active Validation Service (AVS):

Source: AltLayer

● Vital: This service involves operators checking the blocks and status submitted by the Rollup sequencer. If any problems are found, they can challenge them with fraud proofs to ensure accuracy and credibility.

● Mach: This protocol accelerates the finalization process of Rollups. It allows operators to use Ethereum-based assets as a guarantee for any statement about the state of a Rollup, resulting in faster settlement.

● Squad: This service introduces decentralized sorting and is supported by economic incentives. By decentralizing this process, it solves and alleviates problems such as short-term system downtime and unfair transaction ordering (MEV) caused by a single sequencer controlling Rollup.

By connecting Ethereum's trusted network with heavy staking, these services address decentralization and security challenges in application-specific rollups. By dividing the service into three modular parts, Heavy Staking Rollup provides a versatile structure that improves Rollup’s features.

2) Multifunctional Rollup stack

AltLayer makes blockchain development flexible and user-friendly, supporting a variety of rollup stacks, data layers and connections. Its easy-to-use dashboard allows anyone to set up and launch their blockchain project without much technical knowledge, making blockchain accessible to more people. The modular design of the platform allows users to customize it to their needs, ensuring it can grow and change as their needs arise. AltLayer also focuses on security and supports a variety of virtual machines, making it a versatile choice for developing blockchain applications.

Source: AltLayer

3) Simple deployment of code-free interfaces

AltLayer simplifies the complex world of blockchain with a simple, code-free dashboard. This easy-to-use tool allows anyone, coder or non-coder, to set up their own blockchain setup in minutes. Whether choosing how many sequencers to use, setting gas limits, or adding middleware like bridges and RPC providers, the dashboard makes customization straightforward and flexible. Now, with just a few clicks, users can quickly launch a customized execution layer, bringing blockchain development to a wider audience.

- Flash Layer 和 Persistent Rollups
AltLayer introduces two types of Rollups to solve the scalability problem of blockchain: Flash Layers and Persistent Rollups.

Flash Layers are temporary, customizable Rollups created to handle sudden spikes in demand for dApps, such as during token sales or gaming events. Developers can quickly set up these Rollups when they expect a lot of activity, use them to handle the load without slowing down the main network, and then shut them down again.

Persistent Rollups are designed for dApps that require long-term, continuous support. They are standard optimistic rollups customized for specific applications and can support EVM and WASM environments. These Rollups are ideal for applications in areas such as GameFi, SocialFi and DeFi, providing stable and scalable solutions for projects with ongoing demand.

Essentially, Flash Layers provide a flexible, short-term solution for handling sudden spikes in blockchain activity, while Persistent Rollups provide a solid foundation for applications with ongoing needs.

Tokenomics

The ALT token is the primary currency of its platform, with a current circulating supply of 1.1 billion tokens, accounting for 11% of its total supply of 10 billion. It serves multiple functions: serves as financial collateral that can be mitigated in the event of abuse; allows holders to vote on decisions affecting the protocol; rewards contributors within the platform ecosystem; and is used for payment for services within the network.

Source: BinanceResearch

Treasury 21.50% | Protocol Development 20.00% | Investors 18.50% | Team 15.00%

Ecosystem & Community 15.00% | Advisors 5.00% | Binance Launchpool 5.00%

Source: BinanceResearch

The project features minor daily releases. The next significant release is scheduled for July 25th, when 5% of the total supply will become available. Beginning in the third quarter of 2024, there will be a significant acceleration in the release schedule.

Source: DropsTap

competitors

The RaaS industry is expanding rapidly, with several innovative projects at the forefront. In this highly competitive space, projects like Conduit, Caldera, and Gelato are establishing their unique positioning. AltLayer has established a unique position in the RaaS market by prioritizing versatility and providing outstanding support for a wide range of protocols and features.

Within this segment, AltLayer has gained significant attention, capital, and market share, marking it as a leading competitor among its peers.

The following is a brief introduction to the above competing products:

Bullish fundamentals

● In 2023, Rollup significantly improved Ethereum’s scalability, resulting in a significant increase in total value locked (TVL), and AltLayer solidified its position as a leader in the Rollup-as-a-Service market, boding well for widespread use.

● Supports WASM and EVM virtual machines, broadening application development opportunities.

● In September 2023, the Rollup stack "Turbo" designed specifically for GameFi was launched to provide a scalable, low-latency gaming environment.

● In January 2024, we cooperated with Babylon Chain to integrate the security of Bitcoin into Rollup verification, pioneering a decentralized security layer.

● Expected to benefit from Ethereum’s EIP-4844, a proposal aimed at reducing rollup costs and expanding technology access.

● Have a strategic roadmap full of exciting initiatives and key events.

Source: BinanceResearch

● Received significant support and formed key partnerships, including working with EigenLayer to solve Ethereum’s scaling challenges through “Restaked Rollup”.

● Achieve data availability with Celestia, focusing on reducing costs and improving efficiency.

● Cooperate with RISC Zero to integrate “on-demand” zero-knowledge proof into optimistic rollup to enhance security.

● Partnering with Hyperlane to achieve license-free interoperability enhances communication and services within the AltLayer ecosystem, broadening opportunities for developers and projects.

Bearish fundamentals

- Only 11% of AltLayer’s total token supply is currently in circulation, which could lead to inflationary pressures if market capitalization does not keep pace with token supply growth, especially if demand growth lags.

- Its high FDV ($4.8 billion) may be seen as a sign of overvaluation, raising concerns about its current market valuation.

- AltLayer competes with other Rollup projects, making it harder to stand out in a crowded Rollup field.

- For AltLayer's solution to have a significant impact, it needs to be widely adopted by developers and users. Convincing the blockchain community to move from a familiar platform to AltLayer can be difficult.

- The complexity of AltLayer’s technology means that as a project grows, it may be challenging to maintain smooth operations and security.

Conclusion

AltLayer differentiates itself from the market with its highly adaptable RaaS solutions. With strong investment and excellent integration capabilities, it becomes the preferred RaaS option in the market. However, while the cryptocurrency market continues to evolve, it is critical to carefully consider potential supply issues and the persistence of demand.

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