AltLayer is essentially an open and decentralized protocol that combines existing rollup technologies and provides them with enhanced security, decentralization, and interoperability. At the heart of its operation is a versatile launchpad called Rollup as a Service (RaaS), which allows even developers with no coding experience to easily and quickly create a customized rollup. It is specifically designed to provide rapid solutions to the growing needs of Web3 applications.
AltLayer's modular architecture enhances interoperability for Web3 applications by supporting compatibility between different blockchains, virtual machines (VMs), rollup SDKs, and data availability layers. The project's technology aims to provide a seamless experience for applications, particularly in areas requiring high transaction throughput and low latency, such as gaming, metaverse, data availability, and DeFi. AltLayer uses three core Active Verification Services (AVS) layers to enhance the security and finality of rollups:
* MACH: Provides faster finality to rollups by allowing operators (validators) to re-stake Ethereum-based assets. This allows transactions to become irreversible, or final, much faster.
* SQUAD: Decentralizes the transaction sequencing of rollups. It eliminates the problems of relying on a single sequencer, such as MEV (Maximum Extractable Value) and rent extraction, providing decentralized sequencing with economic support.
* VITAL: Provides the decentralized data availability services necessary to prove the accuracy of the rollup status.
Another important mechanism in AltLayer is the fraud proof and objection system. All users have the right to object to the network if they suspect a rollup block is invalid. If a user submits a fraud proof and the challenge is accepted, the invalid block is reverted, and the responsible AVS operator is penalized for staking ALT, the protocol's native token (they lose their staked ALT tokens).
ALT, the protocol's native token, plays a critical role in the operation of these mechanisms. The ALT token:
* Used in the staking mechanism (operators stake to earn rewards and lose penalties if they misbehave).
* Used in governance, where decisions about the protocol's future are made (ALT holders can vote).
* Plays a role in incentivizing network participants.
AltLayer acts as a "rollup aggregator," providing a modular platform that allows developers to easily create customized, scalable, and secure rollups. It achieves this by integrating with protocols like EigenLayer, adding features such as fast finality, decentralized ranking, and secure data availability.