Making thousands of trades at the same time on the blockchain can generate a problem: slow processing. There are solutions that allow you to deal with this large amount, called scalability. One of them is Altlayer.
With the popularization of digital assets, more people trade on Web3, making the system slower. It's as if many cars congest the main avenues of a city, generating traffic.
Rollups: scalability solution
Rollups were created to address the increase in blockchain traffic. They take transactions from the main layer and execute them on a secondary layer. Then they send back the most important data and process validation. They work like traditional internet file compressors.
The difference between Altlayer and other current rollups is that it is an open and decentralized protocol, which accelerates this scalability. It improves transaction speed on Ethereum and other blockchains with native and restocked rollups, which use assets staked on Ethereum as collateral with other protocols for additional fees.
Rollup as a Service
As the protocol is open, developers who want to create a customized rollup can use the tools that the platform provides. This is called rollup as a service (RaaS). The interface is intuitive and friendly, making work easier.
Altlayer allows you to develop this service in several different chains and even stacks of rollups, protocols and tools aimed at creating and managing these systems. They provide the information to carry out negotiations in the secondary layer.
You can even do a temporary rollup. The developer can create this DeFi application lasting for a short period of time for a certain purpose. The information is recorded in the main layer, without affecting the negotiation carried out.
Additional Altlayer Products
One of the protocol's products is Vital, in which operators actively verify, validate blocks on the blockchain and check information in rollups. From there, users can make withdrawals quickly, without waiting for rollups to be resolved.
Another application of the DAO is Mach, a protocol that gives instant finality to rollups. With it, you can quickly restore Ethereum-based assets. This greatly reduces the wait for trade confirmation and facilitates communication between blockchains and rollups.
The Altlayer squad has decentralized sequencing for rollups to carry out transactions in the second layer. This solves one of the problems with protocols made on a single sequencer and brings more reliability to the platform.
ALT Token
The ALT token is used as a form of payment for transaction fees and storage in the ecosystem. It is also of utility and governance. You can use it as staking to earn income and vote on decisions on the platform.
As the protocol is well respected in crypto, the airdrop was so successful that the token increased in value quickly. There were 300 thousand tokens launched at the time. The total amount is 10 billion.
Learn more about cryptocurrencies
Altlayer's purpose is innovative for bringing a scalability solution to blockchain negotiations. To learn more about cryptocurrencies, continue reading the NovaDAX blog. Access and stay up to date with the latest news!
