Altlayer

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Discover Altlayer's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Altlayer?

AltLayer is a decentralized protocol that facilitates the launch of native and restaked rollups with both optimistic and zk rollup stacks. It offers a Rollups-as-a-Service (RaaS) launchpad, enabling users to create customized rollups without extensive coding experience. AltLayer enhances security, decentralization, interoperability, and fast finality by combining multiple rollup stacks and leveraging EigenLayer's staking mechanism.

How is Altlayer used?

AltLayer (ALT) is a decentralized protocol that enhances the functionality of rollups by providing enhanced security, decentralization, interoperability, and fast finality. Here are the key ways in which AltLayer is used:

  1. Restaked Rollups: AltLayer introduces the concept of Restaked rollups, which combines the ease of spinning up rollups using popular rollup stacks with the power of EigenLayer's restaking mechanism. This provides enhanced security, decentralization, interoperability, and fast finality to existing rollups.

  2. Actively Validated Services (AVSes): Restaked rollups are composed of three AVSes: VITAL (for decentralized verification of rollup state correctness), MACH (for fast finality), and SQUAD (for decentralized sequencing). These services are provided via modular components, ensuring flexibility and customization.

  3. Ephemeral Rollups: AltLayer also offers ephemeral rollups, which are highly resource-optimized rollups designed for dApps expecting a surge in demand. These rollups can be quickly spun up, used as needed, and then disposed of, providing the benefits of an application-specific rollup and a general-purpose Layer 1.

  1. No-Code Rollups-as-a-Service (RaaS) Launchpad: AltLayer provides a versatile, no-code RaaS launchpad that allows developers to spin up a customized rollup within minutes. The RaaS product supports multiple chains, virtual machines, rollup SDKs, sequencing services, and data availability layers.

  2. ALT Token: The ALT token is the native utility token of the AltLayer ecosystem. It serves several purposes:

    • Economic Bond: ALT token holders can stake their tokens to participate in the consensus mechanism and earn rewards for securing the network. Stakes will be slashed at detection of malicious activities.
    • Governance: ALT token holders have voting rights that govern the protocol's development and operations.
    • Fees: Transaction fees, storage fees, and other services within the AltLayer ecosystem are paid in ALT tokens, and operators will receive a portion of these as their incentivizations.

Overall, AltLayer simplifies rollup development by providing a decentralized protocol that enhances security, decentralization, interoperability, and finality, while also offering a no-code RaaS launchpad and ephemeral rollups for flexible and efficient rollup deployment.

How do I store Altlayer?

To store Altlayer (ALT) tokens securely, you have several options:

  1. Cold Wallets: These are offline wallets that provide the highest level of security. There are two types:

    • Paper Wallet: Generate a public and private key offline and print them on paper. This method is highly secure but less convenient for frequent transactions.
    • Hardware Wallet: Store your crypto addresses and keys in a physical device, such as a USB drive. This method is highly secure and suitable for large holdings.
  2. Non-Custodial Wallets: These wallets give you complete control over your private keys. You can use hardware wallets, Web3 wallets, or paper wallets. This method is highly secure but requires you to manage your keys securely.

  3. Custodial Wallets: These wallets are provided by exchanges and platforms, such as Bitget and KuCoin. They offer quick access to trading products but require you to trust the exchange to secure your assets. Make sure to set up strong passwords and security settings to prevent unauthorized access.

Choose the method that best fits your needs and preferences, considering factors such as security, convenience, and the frequency of transactions.

How to buy Altlayer?

To buy AltLayer (ALT) tokens, follow these steps:

  1. Choose an Exchange: Select a reliable cryptocurrency exchange that supports AltLayer (ALT) trading. Popular options include Binance, CoinEx, Bybit, gate.io, and Kraken.

  2. Create an Account: Register for a free account on the chosen exchange. This typically involves providing personal information such as your name and email address. Some exchanges may require Know-Your-Customer (KYC) verification to increase withdrawal limits and unlock additional features.

  3. Fund Your Account: Deposit funds into your exchange account using various payment methods such as bank transfers, credit/debit cards, or other cryptocurrencies. The specific options available may vary depending on the exchange and your location.

  1. Place a Buy Order: Navigate to the exchange's trading platform, select the desired AltLayer (ALT) trading pair, and place a buy order. You can set the amount of ALT you want to purchase and the price you are willing to pay.

  2. Store Your AltLayer: After purchasing, store your AltLayer tokens securely. It is recommended to use a cold wallet, such as a hardware wallet or a paper wallet, for long-term storage to minimize the risk of hacking and loss of funds.

  3. Monitor Your Investment: Keep track of your AltLayer investment's performance and adjust your strategy as needed.

Remember to research the exchange, understand the fees, and consider your investment approach before buying AltLayer tokens.

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History of Altlayer

AltLayer, a decentralized protocol for rollups, was established in 2021 by Dr. Yaoqi Jia, a former director of Parity Asia and co-founder/CTO of Zilliqa. The company is headquartered in Singapore and comprises a team of experienced members from firms like Parity, Ziliqa, and Synthetix.

In January 2024, AltLayer launched its native utility token, ALT, marking a significant milestone in its development. This launch was accompanied by the introduction of restaked rollups, a novel infrastructure unveiled in partnership with EigenLayer in Q4 2023. This technology aims to enhance the security, decentralization, interoperability, and finality of rollup ecosystems.

AltLayer has received significant support from the crypto industry, raising $7.2 million in a seed round and $22.8 million in two token sale rounds. The project has partnered with various stakeholders, including Polygon Capital, Breyer Capital, Jump Crypto, OKX Ventures, Hashkey Capital, TRGC, Primitive, and Bodhi Ventures.

The protocol offers a rollup framework called Retaked Rollups, which combines the power of rollup stacks with EigenLayer's staking mechanism to provide enhanced security and decentralization. It also features ephemeral rollups, allowing developers to create fast, scalable, and application-specific rollups secured by Layer 1, which can be disposed of using an "end-of-life" settlement on Layer 1.

AltLayer has been actively developing its ecosystem, hosting a public Arbitrum Orbit testnet called Nitrogen, which integrates with Celestia's DA layer. The project has also collaborated with Babylon Chain to bring Bitcoin's security to thousands of rollups and with B² Network to launch their rollup using AltLayer's customizable RaaS infrastructure.

Overall, AltLayer has made significant strides in its development, offering innovative solutions to the scalability challenges faced by decentralized applications.

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How Altlayer works

AltLayer is an open and decentralized protocol designed to enhance the functionality of rollups, which are secondary layers that process transactions off the main blockchain. This approach helps alleviate congestion on the primary blockchain, making it more scalable and efficient. Here's a detailed overview of how AltLayer works:

Restaked Rollups

AltLayer introduces the concept of Restaked rollups, which combine the ease of spinning up rollups using popular rollup stacks with the power of EigenLayer's restaking mechanism. These rollups are essentially a set of three vertically integrated Actively Validated Services (AVSes) created on-demand for a given rollup. The AVSes provide three key services:

  1. Verification of Rollup State Correctness: Ensures the accuracy of the rollup's state.
  2. Faster Finality: Enhances the speed at which transactions are finalized.
  3. Decentralized Sequencing: Allows for decentralized sequencing of transactions.

These services are provided via three modular components: VITAL (for decentralized verification), MACH (for fast finality), and SQUAD (for decentralized sequencing).

Rollups-as-a-Service (RaaS) Launchpad

AltLayer offers a versatile, no-code RaaS launchpad that allows developers to quickly spin up customized rollups within minutes. This platform supports multiple chains, virtual machines, rollup SDKs, sequencing services, and data availability layers. It is designed for a multi-chain and multi-VM world, making it highly flexible and adaptable.

Ephemeral Rollups

AltLayer also introduces ephemeral rollups, which are highly resource-optimized rollups designed for dApps expecting a surge in demand. These rollups can be quickly spun up, used as needed, and then disposed of, providing the benefits of both application-specific rollups and general-purpose Layer 1 rollups.

Security and Governance

AltLayer uses a decentralized network of verifiers to detect and challenge a rollup's state, ensuring the security of the system. The protocol also has a governance mechanism, where ALT token holders have voting rights to govern the protocol's development and operations. Additionally, the ALT token serves as an economic bond, allowing holders to stake their tokens and participate in the consensus mechanism to earn rewards.

Transaction Finalization

AltLayer uses a tiered methodology for block finalization, allowing users to decide on the finality status of a transaction based on their security budget. The finalization process consists of three tiers: execution-level, verification-level, and rollup-level. Each tier provides increasing levels of confidence in the finality of the block.

In summary, AltLayer is a decentralized protocol that enhances the functionality of rollups by providing better security, decentralization, interoperability, and faster finality. Its innovative Restaked rollups and RaaS platform offer a unique solution for developers looking to launch their own rollups, making it a promising project in the blockchain industry.

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Altlayer's strengths

AltLayer (ALT) has several strengths that contribute to its potential and advantages:

  1. Decentralized Protocol: AltLayer is an open and decentralized protocol for rollups, enhancing security, decentralization, interoperability, and scalability.

  2. Restaked Rollups: AltLayer's Restaked rollup technology reinforces existing rollup frameworks, such as OP Stack, Arbitrum Orbit, and ZKStack, by incorporating EigenLayer's restaking mechanism. This enhances security, decentralization, interoperability, and scalability.

  3. Rollups-as-a-Service (RaaS): AltLayer offers a versatile, no-code RaaS launchpad that allows developers and non-coders to quickly create customized rollups. This launchpad supports multiple chains and virtual machines, making it highly adaptable.

  1. Ephemeral Rollups: AltLayer introduces ephemeral rollups, which are highly resource-optimized and designed for specific applications. These rollups can be quickly spun up and settled on Layer 1, providing flexibility and efficiency.

  2. Native Token (ALT): The ALT token supports the ecosystem's growth and user participation. It can be used for transaction fees, accessing exclusive features, and participating in governance. Users who stake ALT can become Aggregate Verifier Services (AVSs).

  3. Strong Backing: AltLayer has received significant support from well-known venture capital and crypto investors, including Polychain Capital, Jump Crypto, Binance Labs, Polkadot founder Gavin Wood, and former Coinbase CTO Balaji Srinivasan.

These strengths position AltLayer as a pioneer in the rollup technology space, offering innovative solutions for scalability, security, and decentralization.

Altlayer's risks

Altlayer (ALT) carries several risks that investors should be aware of before investing. Here are some of the key risks associated with Altlayer:

  1. Volatility: Altlayer is a high-risk, speculative investment susceptible to significant price fluctuations. Its market risk premium is part of the Capital Asset Pricing Model (CAPM), which calculates the acceptable rate of return on investment based on risk and reward.

  2. Security Risks: As a cryptocurrency, Altlayer is vulnerable to hacking and other security breaches. Investors must secure their tokens with robust private keys and wallets to prevent unauthorized access.

  3. Regulatory Uncertainty: Cryptocurrencies like Altlayer are largely unregulated, which can lead to legal and tax complexities. Investors must understand these risks and ensure compliance with applicable laws and regulations.

  1. Market Manipulation: The distribution of ALT tokens during the airdrop has raised concerns about unfairness and potential market manipulation. Some users received significantly more tokens than others, leading to community backlash and questions about the transparency of the process.

  2. Technical Risks: Altlayer's technical infrastructure, including its rollup technology and decentralized sequencing framework, is still developing and may be prone to errors or disruptions.

  3. Liquidity Risks: The liquidity of Altlayer tokens can be affected by various factors, including market sentiment and trading volumes. Investors may face difficulties in selling their tokens quickly or at a favorable price.

  1. Governance Risks: As a decentralized protocol, Altlayer relies on community governance, which can be influenced by various stakeholders. This may lead to conflicts of interest or decisions that do not align with the broader community's goals.

  2. Dependence on Partnerships: Altlayer's ecosystem relies on partnerships with other infrastructure providers and service providers. Any disruptions or issues with these partnerships can impact Altlayer's performance and value.

Investors should carefully evaluate these risks and consider their own risk tolerance before investing in Altlayer.

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Did Altlayer raise funds?

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Altlayer’s team

  • Dr. Jia Yaoqi: Founder and CEO of AltLayer, with extensive experience in the crypto industry, formerly a director at Parity Asia and co-founder/CTO at Ziliqa.

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