Running a Layer 1 (L1) blockchain is expensive and hard to sustain. Projects often struggle to fund development long-term, even if they start with a lot of tokens. That’s why many L1 blockchains are now switching strategies and choosing to build on Ethereum instead using something called “rollups.”
What Are Rollups, and Why Do They Matter?
Ethereum, the most well-known smart contract platform, realized early on it couldn’t keep growing just by increasing block size. So, it focused on rollups small blockchains built on top of Ethereum that are faster, cheaper, and still secure. Each rollup can be tailored for specific purposes, like free gaming transactions or compliance for banks. In contrast, many other L1s prioritized speed over safety and struggled. Some even failed due to poor economic models (like Terra). Now, these blockchains are choosing to build rollups on Ethereum instead, because Ethereum offers strong security and a smart scaling model.
XPLA’s Journey: From L1 to Rollup Expansion
XPLA is a blockchain project that began as its own L1 built with Cosmos tech. It focused on gaming and digital content, hosting titles like The Walking Dead: All-Stars and Summoners War. But as they grew, they realized the need for more scalability, lower costs, and access to the larger Ethereum community.
So, XPLA partnered with Caldera to launch zkXPLA, a new rollup built using zkSync's advanced ZK Stack. This allows them to keep their original L1 running while expanding into the Ethereum ecosystem with a faster, cheaper, and more secure version of their platform.
Benefits of This Move:
Lower Costs – Using Ethereum security without running an expensive independent chain.
Wider Reach – Connect to Ethereum’s vast user base and community.
More Control – Create a custom blockchain designed for games and digital media.
They still have support from major players, like Ubisoft, which helps validate their original network.
Why Run a Rollup Instead of an L1?
Running your own L1 is like running your own data center it's complex and expensive. You need to manage validators, reward stakers, and maintain security, which can cost tens of millions annually. But rollups are like cloud servers: cheaper, easier, and still reliable.
Rollup Advantages:
Keep More Revenue – Rollups can earn money from user fees and reinvest in growth.
Focus on What Matters – Spend less time maintaining infrastructure and more on product development.
Better Token Economics – Less need to create new tokens just to fund the network.
Caldera makes launching and managing these rollups simple, handling everything from setup to updates.
Solving the “Blockchain Island” Problem
A big issue for many L1s and early rollups is isolation they don’t connect well with other blockchains. This makes it hard to share users, money, or developers.
Caldera solves this in two steps:
Base Connectivity - Rollups built with frameworks like Arbitrum, Optimism, or zkSync already connect with those ecosystems.
The Metalayer - Caldera’s special network that links all rollups together, regardless of what tech they use. It allows:
Fast, safe bridges between chains
Easy messaging between apps
Shared liquidity and tools for developers
This makes it easier for new rollups to succeed and for developers to build multi-chain apps.
Specialized Chains for Special Needs
Unlike general L1s that serve everyone, rollups can be customized. Here are some examples:
Gaming Chains (like zkXPLA) – Can run with no gas fees and custom tokens for smooth player experiences.
Finance Chains (like Ozean) – Can have unique features like built-in stablecoins or compliance tools.