Binance Labs Invests in AltLayer, a Leading Decentralized Rollups-as-a-Service Provider

blockchain.news:

Binance Labs, the venture capital and incubation arm of Binance, has announced a strategic investment in AltLayer, a leading decentralized Rollups-as-a-Service (RaaS) provider for Web3 applications, as of August 9, 2023.

Investment Details and AltLayer's Vision

The investment aims to support AltLayer's innovative approach to facilitating the launch of application-tailored rollups via its core network called the Beacon Layer. Nicola W., Investment Director at Binance Labs, stated, «Application-tailored rollups offer the security of Layer 1s and the customizability of appchains. However, a common issue with rollups today is that they mostly operate with centralized sequencers and create fragmented liquidity and userbase. We found AltLayer's approach to facilitating the launch of application-tailored rollups via Beacon Layer an inspired take.»

Rollups are a Layer 2 scaling solution that bundles up transaction data and transfers it off the main chain (or Layer 1 blockchain). Transaction execution is performed off-chain, while assets are held in an on-chain smart contract. The transaction data is sent back to the main blockchain upon completion. Rollups increase transaction efficiency in terms of throughput, allowing a blockchain to process more transactions within a certain timeframe. There are two types of rollups: optimistic rollups, which use a fraud-proving scheme, and zero-knowledge rollups (zk-rollups), which use zero-knowledge proofs to validate transactions. Both types aim to enable high throughput and lower costs.

Optimistic Rollups are implemented by projects like Optimism ($OP) and Arbitrum ($ARB), focusing on increasing Ethereum's transaction throughput using fraud-proving schemes. Zero-Knowledge Rollups