Forward the Original Title：Analysis of Decentralized RaaS platform AltLayer: An Integration and Service Network Supporting dApp Developers

AltLayer differentiates itself from the market with its highly adaptable RaaS solutions.

Project Name: AltLayer

Project Type: Rollup, Restaking

Token Symbol: $ALT

Cryptocurrency Ranking: 161

Market Cap: $572 million

Fully Diluted Valuation (FDV): $5.19 FDV

Circulating Supply: 1.1 billion (11%)

Maximum Supply: 10 billion

Introduction

In the realm of Ethereum scaling solutions, Rollup has emerged as a key innovation, offering a promising avenue for alleviating scalability challenges faced by the network. By aggregating transactions off-chain and efficiently incorporating them into 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 significantly enhanced Ethereum’s ability to handle lots of dApps. Currently, eight out of the top ten Ethereum scaling solutions are Rollups.

Source: BinanceResearch

Within the scope of Rollup technology, two main categories stand out: 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 a significant milestone in this field, simplifying the deployment of customized Rollup solutions. This advancement enables projects to leverage the advantages of Rollup—customizability, scalability, and efficiency—without the need for in-depth blockchain infrastructure expertise.

As we examine the current status and future prospects of Ethereum scalability, the roles of Rollup and RaaS providers are undoubtedly central to fostering innovation and accessibility within the blockchain space. This article will closely examine these developments, offering insights into how Rollups work, why they are important, and what they may signify for the future of Ethereum. In particular, we will focus on AltLayer and its evolving project, highlighting its innovative solutions and contributions to making Ethereum more scalable and accessible for 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 looking to deploy dApps have several options, each with their own trade-offs:

● Deployed on Layer 1 blockchain: Provides strong security and rich ecosystem, but faces high cost 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 dApps on customized Rollups brings scalability, security, and customization without competing for block space, potentially generating 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 pools provided by 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: No in-depth technical knowledge is required to enable scalable, efficient blockchain solutions that promote innovation within the ecosystem.

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

Source: BinanceResearch

AltLayer joins this RasS group and brings more room for expansion by introducing 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 sequencing: 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 finality 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.

Overview of AltLayer

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.

Foundational Support and Strategic Partnerships

AltLayer is led by Dr. Yaoqi Jia, who previously led Parity Asia and helped launch Zilliqa, serving as its Chief Technology Officer. The team comprises seasoned blockchain experts and top researchers with experience at Parity, Zilliqa, and Synthetix.

AltLayer successfully raised $14.4 million in a strategic financing round, led by Polychain Capital and Hack VC. This funding round received significant contributions 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.

Furthermore, AltLayer’s collaboration with major projects like EigenLayer and Celestia, along with its growing ecosystem, establishes an integration and service network aimed at empowering dApp developers.

Source: AltLayer

Core features and design

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

Re-Staking Rollups

1) Re-staking Rollups (Restaked Rollups)

The core of AltLayer innovation is itsRestaked Rollups, including three key services, namely Active Verification Service (AVS):

Source: AltLayer

● Vital: This service involves the operator checking the blocks and status submitted by the Rollup sequencer. If any issues are discovered, they can challenge them with proof of fraud, ensuring accuracy and credibility.

● Mach: This protocol accelerates the finality process of Rollup. It allows operators to use an Ethereum-based asset as a guarantee for any claim on Rollup status, resulting in faster settlement.

● Squad: This service introduces decentralized sequencing supported by economic incentives. Through decentralization, it addresses and alleviates issues such as short-term system downtime and unfair transaction ordering (MEV) caused by a single sequencer controlling the Rollup.

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

2) Versatile Rollup Stack

AltLayer makes blockchain development flexible and user-friendly, supporting various Rollup stacks, data layers, and connections. Its user-friendly dashboard allows anyone to set up and launch their blockchain project without much technical knowledge, making blockchain more accessible to a wider audience. The platform’s modular design allows users to customize it according to their needs, ensuring scalability and adaptability. AltLayer also prioritizes security and supports multiple virtual machines, making it a versatile choice for developing blockchain applications.

Source: AltLayer

3) No-Code Interface for Easy Deployment

AltLayer simplifies the complex world of blockchain through a straightforward no-code dashboard. This user-friendly tool enables anyone, whether a coder or non-coder, to set up their blockchain configuration in minutes. Whether selecting the number of sequencers to use, setting gas limits, or adding middleware like bridges and RPC providers, the dashboard makes customization straightforward and flexible. With just a few clicks, users can now quickly launch customized execution layers, extending blockchain development to a broader audience.

Flash Layer and Persistent Rollups

AltLayer introduces Flash Layers and Persistent Rollups to solve the scalability problem of blockchain:

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 expecting high activity, use them to handle the load without slowing down the main network, and then shut them down afterward.

Persistent Rollups, on the other hand, are designed for dApps that require long-term, continuous support. They are standard optimistic Rollups customized for specific applications and can support both EVM and WASM environments. These Rollups are well-suited for applications in areas like GameFi, SocialFi, and DeFi, providing stable and scalable solutions for projects with ongoing demands.

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

Tokenomics

ALT tokenIt is the main 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 rapidly expanding, with several innovative projects at the forefront. In this competitive field, projects like Conduit, Caldera, and Gelato are establishing their unique positions. AltLayer, prioritizing versatility, distinguishes itself in the RaaS market by providing outstanding support for a wide range of protocols and functionalities.

In this niche market, AltLayer has garnered significant attention, capital, and market share, marking it as a leading competitor among its peers.

Below is a brief introduction to the aforementioned competitors:

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 rolled out, aiming to provide a scalable, low-latency gaming environment.

● In January 2024, Partnering with Babylon Chain, it integrated the security of Bitcoin into Rollup verification, pioneering a decentralized security layer.

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

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

Source: BinanceResearch

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

●It uses Celestia to achieve data availability and focuses on reducing costs and increasing efficiency.

● It worked with RISC Zero, integrating “on-demand” zero-knowledge proofs into optimistic rollup, enhancing security.

● By partnering with Hyperlane, it enables license-free interoperability, enhancing communication and services within the AltLayer ecosystem, and broadening opportunities for developers and projects.

Bearish Fundamentals

Currently, only 11% of AltLayer’s total token supply is in circulation. If market capitalization does not synchronize with token supply growth, especially if demand growth lags behind, it could lead to inflationary pressures.

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 increasingly challenging to stand out in the crowded Rollup space.

Significant adoption by developers and users is necessary for AltLayer’s solution to have a significant impact. Convincing the blockchain community to transition from familiar platforms to AltLayer could prove challenging.

The complexity of AltLayer’s technology implies that maintaining smooth operation and security may face challenges as the project grows.

Conclusion

AltLayer distinguishes itself in the market with its highly adaptable RaaS solution. With strong investment and outstanding integration capabilities, it has become the preferred RaaS option in the market. However, as the cryptocurrency market continues to evolve, careful consideration of potential supply issues and the sustainability of demand is crucial.

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