What is AltLayer (ALT)? Pros & Cons, ALT Price Prediction

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28 Jan 2024

1. WHAT IS ALTLAYER CRYPTO?

What is AltLayer (ALT)?

AltLayer (ALT) is an innovative cryptocurrency with a dedicated focus on providing cutting-edge solutions. Explore the AltLayer ecosystem through platforms like galxe Galxe, an integral part of the network fostering community engagement. For enthusiasts, AltLayer offers features like a AltLayer faucet, providing a user-friendly entry point to acquire ALT tokens.
Before diving into the live environment, it's advisable to explore AltLayer's capabilities in the AltLayer testnet. This test environment ensures a seamless experience for users eager to understand AltLayer's crypto dynamics. AltLayer's native token (ALT) plays a pivotal role in powering transactions and operations within the AltLayer network.
Engage with AltLayer Discord, a space buzzing with discussions around AltLayer's crypto developments, events, and the broader blockchain landscape. AltLayer's commitment to versatility is evident in features like the AltLayer swap mechanism, allowing users to exchange ALT tokens effortlessly.

2. WHAT ARE ALTLAYER PRODUCTS?

AltLayer's product

AltLayer's product, Restaked Rollup, is a service that provides a Rollup Layer for various Rollups, contributing to increased transaction processing capabilities and decentralization within a project. The Restaked Layer utilizes Actively Validated Services (AVS), which are validators for authentication on specific layers like Sidechain and Data Availability Layer.
Currently, Restaked Rollup's AVS includes:

2.1. VITAL:

VITAL serves as an AVS positioned between Rollup and Layer 1, verifying transactions and status from Rollup to ensure network safety. It then transfers this information to Layer 1 for transaction execution, enhancing the security and decentralization of Rollups. In case of detecting violations from Rollup, VITAL can perform fraud proof and send it to Layer 1. Fraud proof allows anyone to submit evidence within a challenge time to prove fraudulent activity or errors.

2.2. MACH:

MACH is an AVS designed to accelerate transaction speed for Rollup through three modes:
Pessimistic: Every Rollup transaction is considered invalid and needs to be re-verified twice, increasing security.
Optimistic: Rollup provides the block state to MACH for challenges to prove the falsity of the state.
Validity Proof: Verifies the validity of transactions committed by Rollup, leveraging MACH network decentralization for system accuracy and safety.

2.3. SQUAD:

SQUAD is an AVS that aids in decentralizing sequencers. Sequencers are commonly used in Layer 2 or Rollups to verify and organize transactions, collecting transaction fees for verification. AltLayer applies SQUAD to Rollups to increase sequencer decentralization, minimizing issues like Maximum Extractable Value (MEV) or performance dependency on a single sequencer.

2.4. Rollup-as-a-Service (RaaS):

RaaS provides Rollup services for Web3 projects with two main products:

Versatile Rollup Stack: AltLayer offers essential layers for a project looking to build a Rollup, including a settlement layer for transaction processing and validation, and a Data Availability layer for scalability through data storage. Versatile Rollup Stack is supported by projects such as Optimism, Celestia, EigenLayer.
No-code Dashboard: A RaaS service for developers or inexperienced users in building Rollup-related code. The No-code Dashboard enables users to create an execution layer in just 5 minutes and other components like sequencers and block gas limits.

AltLayer has also developed FlashGPT, an AI chatbot application focused on assisting users in building Rollups and creating smart contracts.
In summary, AltLayer's approach involves leveraging AVS to enhance security, speed, and decentralization in Rollup technology. The RaaS offering provides accessible solutions for Web3 projects, catering to both experienced developers and those with limited coding experience.

3. HOW DOES ALTLAYER WORK?

How does AltLayer Work?

AltLayer works by introducing a novel concept called "Restaked Rollup," which aims to AltLayer address the limitations of existing rollup solutions.

3.1. Modular Architecture:

Unlike traditional rollups with fixed components, AltLayer is designed as a modular framework. This allows developers to customize and optimize the system for specific application needs.
It supports both EVM (Ethereum Virtual Machine) and WASM (WebAssembly), making it compatible with a wide range of smart contracts and blockchains.

3.2. Restaked Rollup:

Instead of relying on a single centralized sequencer, AltLayer utilizes a network of validators called Aggregate Verifier Services (AVSs).
These AVSs compete for the right to sequence transactions and produce rollup blocks.
To participate, AVSs must stake their own tokens, creating a system with inherent skin in the game and disincentivizing malicious behavior.

3.3. Fraud Proofs and Dispute Resolution:

Any user can act as a challenger and submit a fraud proof if they suspect a rollup block is invalid.
If the challenge is successful, the block is reverted, and the stake of the responsible AVS is slashed.
This mechanism ensures the security and integrity of the rollup system.

3.4. Interoperability:

AltLayer is designed to be interoperable with other blockchains. This allows applications to seamlessly move assets and data between different platforms.

This modular and flexible approach makes AltLayer a promising solution for scaling blockchain applications while maintaining security and decentralization.

4. ALTLAYER TEAM MEMBER

Team member behind AltLayer

The team behind AltLayer consists of:

Jia Yaoqi: CEO and Founder of AltLayer. He brings several years of experience in the Web3 space, having previously worked at Zilliqua as Co-Founder and CTO. Additionally, he serves as an advisor to the blockchain technology company, Parity Technologies.
Tan Hun Hao: Head of Product at AltLayer. He also has a background working at Zilliqua in the capacity of Co-Founder.

5. ALTLAYER INVESTORS AND PARTNERS

5.1. Investors:

AltLayer has successfully completed two funding rounds:

February 17, 2022: AltLayer raised funds in a Seed round, totaling USD 7.2 million. The round was led by Polychain Capital, Jump Crypto, and Breyer Capital.
August 4, 2023: Binance Labs joined as an investor in AltLayer. However, the amount raised and the valuation have not been disclosed to the community.

5.2. Partners:

AltLayer has established partnerships with prominent names in the crypto market, including but not limited to Arbitrum, Orbiter Finance, Celestia, and EigenLayer.

6. WHAT IS ALTLAYER TOKEN?

6.1. Altlayer Price

As of today, January 23, 2024, the market price of AltLayer (ALT) is not yet available as it hasn't been publicly listed on any exchanges. The token launch is likely to happen soon, and the price will be determined by market demand and supply after listing.

6.2. Altlayer Tokenomics

Altlayer Tokenomics

Total Supply: 10,000,000,000 ALT
Circulating Supply at Listing: 1,100,000,000 ALT (11.00% of the total)
Private Sale Token Price: 0.008 USD / ALT (Round 1) and 0.018 USD / ALT (Round 2)
Investors: Polychain Capital, Binance Labs, Jump Crypto, Breyer Capital, DAO5, Balaji Srinivasan, Gavin Wood, Sean Neville, Ryan Selkis, and others.

6.3. Altlayer Token Allocation

The number of ALT tokens analyzed additionally is as follows:

Treasury: 21.5%.
Protocol development: 20%.
Investors: 18.5%.
Team: 15%.
Ecosystem and community: 15%.
Advisor: 5%.
Binance Startup Team: 5%.

6.4. Altlayer Token Use Cases

The AltLayer token (ALT) has several key use cases within the platform:

Staking: ALT holders can stake their tokens to become Aggregate Verifier Services (AVSs) and participate in transaction sequencing and earn rewards.
Governance: ALT holders can participate in the governance of the AltLayer protocol through voting on proposals related to fees, upgrades, and other key parameters.
Fees: Certain fees within the AltLayer ecosystem, such as for dispute resolution and fraud proofs, may be paid in ALT.
Ecosystem Access: Holding ALT may provide access to exclusive features and functionalities within the AltLayer ecosystem and partner applications.

6.5. Altlayer Airdrop

AltLayer, a Rollup-as-a-Service (RaaS) protocol, will reward early supporters with an airdrop of its ALT token. To qualify, you must have contributed to the project before January 17, 2024, by meeting one or more of these criteria:

Holding an OG badge NFT
Participating in community campaigns on AltLayer Galxe
AltLayer Staking ETH on EigenLayer
AltLayer Staking TIA on Celestia
Details on claim and allocation specifics will be announced later. However, keep in mind this airdrop is not available to US residents.

In simpler terms, if you were an early bird with AltLayer and actively involved through NFT ownership, community events, or staking on specific platforms, you're up for some free ALT tokens! Stay tuned for further details about claiming your reward.

7. HOW TO BUY ALTLAYER TOKEN?

How to buy Altlayer token?

To acquire Altlayer coin, not currently available on Binance, follow this step-by-step guide:
Centralized Exchange (CEX):

Find a reliable CEX listing Altlayer.
Buy Altlayer directly with fiat or other cryptocurrencies.

Decentralized Exchange (DEX):

Download a Altlayer wallet like Trust Wallet.
Buy Ethereum (ETH) on Binance and send it to your wallet.
Choose a DEX compatible with your wallet (e.g., 1inch for Trust Wallet).
Connect your wallet to the DEX and swap ETH for Altlayer.
If Altlayer isn't listed, find its smart contract Altlayer address and paste it into the DEX.
Confirm the swap and complete the transaction.

8. IS ALTLAYER TOKEN A GOOD INVESTMENT?

Whether or not AltLayer token is a good investment depends on your individual risk tolerance and investment goals. Here are some factors to consider:
Pros:

Innovative technology: AltLayer introduces a novel concept called "Restaked Rollup," which aims to address limitations of existing rollup solutions and potentially improve scalability and security for blockchain applications.
Strong team and backing: The project is backed by reputable investors like Polychain Capital, Binance Labs, and Jump Crypto, and has a team with experience in blockchain development.
Growing demand for rollup solutions: As blockchain adoption increases, the demand for efficient scaling solutions like rollups is likely to grow, potentially benefiting AltLayer.
Airdrop for early supporters: The recent airdrop for early contributors demonstrates the team's commitment to rewarding its community.

Cons:

Early stage: AltLayer is still under development and hasn't launched publicly yet. Its technology and tokenomics might undergo changes before its official launch.
High volatility: The cryptocurrency market is known for its volatility, and AltLayer's price could fluctuate significantly after its launch.
Competition: There are several other rollup projects in the market, and AltLayer will need to compete for adoption and market share.
Limited information: As the project is still in its early stages, there might be limited information available about its future plans and roadmap.

AltLayer has the potential to be a valuable project in the blockchain scaling space, but it's still a high-risk investment. Consider your own risk tolerance and research the project thoroughly before making any investment decisions. Don't rely solely on this information and consult with a financial advisor if needed.

9. ALTLAYER PRICE PREDICTION

Predicting the price of AltLayer is currently quite challenging due to several factors:

Limited Data: AltLayer hasn't officially launched or traded on any exchanges yet, which means there's no historical price data to analyze or base predictions on.
Early Development Stage: The project is still under development, and its tokenomics and technology might undergo changes before its official release, impacting future price movements.
Dynamic Market Conditions: The cryptocurrency market is notoriously volatile, and external factors like regulatory changes or overall market trends can significantly influence the price of any token, including AltLayer.

However, considering the available information about the project, here are some potential factors that might influence the future price of AltLayer:

Technology Adoption: If AltLayer's Restaked Rollup technology gains traction and adoption within the blockchain ecosystem, its demand and value could increase.
Team and Backers: The strong backing from reputable investors like Polychain Capital and Binance Labs could bring trust and confidence to the project, potentially impacting the price positively.