How Injective Blockchain and AltLayer are Reinventing DeFi Security

Prateek Tripathi
7 min readMar 22, 2024

In an unprecedented move, Injective Blockchain has teamed up with AltLayer, pioneering the first-ever restaked security framework for on-chain inEVM applications[1]. This collaboration marks a pivotal moment in the realm of decentralized finance (DeFi) and blockchain technology, underscoring the critical role of security in fostering innovation and trust within the ecosystem[1]. Leveraging the Injective inEVM and AltLayer’s expertise in rollup technology not only elevates security but also augments the interoperability and scalability of on-chain applications, setting a new standard for DeFi projects[1].

The restaked security framework introduced by this partnership represents a significant leap forward, offering a robust solution that incentivizes network participants to engage actively in transaction validation and support the system’s integrity[1]. The move to enhance the inEVM environment with AltLayer’s advanced rollup technology also provides unprecedented opportunities for developers, making it simpler to create applications that are not only secure but also enjoy the enhanced scalability, reduced costs, and the vast developmental toolkit provided by the Injective blockchain[1]. This alliance between Injective and AltLayer signifies a promising future for the DeFi ecosystem, attracting a wider community of developers and users by promising a highly secure, scalable, and cost-efficient environment for DeFi applications[1].

The Evolution of Injective’s Blockchain inEVM launch

The evolution of Injective’s Blockchain with the launch of inEVM represents a leap towards a more secure, efficient, and interoperable DeFi ecosystem. This advancement is significantly bolstered by the collaboration with AltLayer, which brings forth several key enhancements:

Security and Interoperability:

  • Leveraging Ethereum L1’s security, the partnership ensures a safe environment for inEVM transactions.
  • AltLayer’s MACH stack integration with Injective’s blockchain introduces a new era of security and transparency.
  • Ethereum’s resettable security features are brought to inEVM, combining Ethereum’s stability with Injective’s flexibility.

Innovative Solutions for DeFi Applications:

  • Restaking-based security from Ethereum is adapted to protect inEVM users from malicious operations, enhancing trust in the system.
  • The collaboration supports the development of a wide range of DeFi products, including futures, options, and other decentralized finance products, fostering a rich ecosystem for developers and users alike.

Technical Achievements and Community Engagement:

  • The launch of inEVM on the mainnet as the first-ever Ethereum-aligned rollup showcases Injective’s commitment to revolutionizing VM development.
  • The INJ governance token plays a crucial role in community participation, allowing for a decentralized decision-making process that shapes the future of the Injective ecosystem.

This collaboration between Injective and AltLayer, particularly through the inEVM launch, marks a significant milestone in enhancing the security, scalability, and interoperability of DeFi applications, promising a more integrated and efficient platform for developers and users in the blockchain space.

Introducing AltLayer: The Vanguard of Rollup Technology

AltLayer emerges as a beacon in the rollup technology landscape, offering a robust suite of solutions aimed at overcoming the scalability hurdles that Web3 applications face. A pivotal component of this innovative ecosystem is the MACH protocol, a collaborative effort alongside Igon Layer and Risk Zero team, designed to expedite the finality of transactions on Ethereum rollups. MACH distinguishes itself through three operational modes:

  • Pessimistic Mode: Ensures full node re-execution for comprehensive validation, with ongoing developments to introduce light clients for improved feasibility.
  • Optimistic Mode: Operates under the assumption of sequencer integrity, employing Byzantine State Execution protocols to rectify any discrepancies.
  • Validity Proof Mode: Leverages ZK-for-proof models to minimize interactions and streamline state transitions.

At the heart of AltLayer’s innovation is the introduction of restaked rollups. This novel concept integrates seamlessly with existing rollup stacks such as OP Stack and Arbitrum Orbit, enhancing them with AltLayer’s restaking mechanism. The mechanism fortifies network security and decentralization through three vertically integrated Actively Validated Services (AVSes):

  1. VITAL: Validates rollup state correctness.
  2. MACH: Provides fast finality for transactions.
  3. SQUAD: Facilitates decentralized sequencing.

This trifecta of services not only bolsters security but also ensures faster transaction finality and enhances interoperability across different rollups. AltLayer’s commitment to fostering a secure, decentralized, and interoperable ecosystem is further exemplified by its Rollups-as-a-Service (RaaS) offering. RaaS enables developers and non-developers alike to launch customized rollups swiftly, embodying the platform’s dedication to innovation and rapid experimentation within the blockchain space.

Unveiling the Restaking Security Framework

The unveiling of the restaked security framework by Injective and AltLayer marks a significant advancement in the security and efficiency of DeFi applications on the Injective blockchain. This innovative framework, the first of its kind, leverages the concept of restaking — a method that allows validators to reinvest their staking rewards to generate compounded returns, enhancing the security and integrity of the network. Here’s how it works:

Integration with Injective inEVM:

  • Developers within the Injective ecosystem can now focus more on creating cutting-edge decentralized applications (dApps) without worrying about security vulnerabilities.
  • The restaked security framework amplifies the DeFi security by enabling a more robust consensus mechanism, an alternative to the traditional Proof-of-Work (PoW), through Proof-of-Stake (PoS).

Restaking Mechanics:

  • In PoS systems, validators are chosen based on their cryptocurrency holdings and are responsible for creating and validating new blocks.
  • Restaking enhances this process by allowing these validators to maximize their returns on staked assets over time, creating an optimized system of pooled security. This pooled security system enables staked ETH to be repurposed, providing validation services to other protocols.

Benefits of Restaking:

  • Pooled Security: Staked ETH is repurposed to provide validation services to other protocols, enhancing the overall security of the network.
  • Increased Cost of Malicious Attacks: By consolidating security pools, the cost for potential attackers to compromise the system is significantly augmented.
  • Extension of Security: Staked ETH can now secure many other networks, introducing a novel income stream for validators often referred to as ‘security-as-a-service’.

Through this collaboration, Injective and AltLayer are not only promoting their roles in the inEVM ecosystem but also setting a new standard for security and efficiency in the DeFi space.

The Mechanics of MACH & Fast Finality

In the realm of blockchain technology, achieving fast finality is crucial for ensuring transactions are completed swiftly and securely. This is where the MACH protocol, a pivotal component of AltLayer’s innovative toolkit, comes into play, particularly in enhancing the Injective inEVM environment. The mechanics of MACH and its role in achieving fast finality can be outlined as follows:

Current Ethereum Finality Challenges:

  • Traditionally, Ethereum’s finality takes over 12 minutes, contrary to the common belief of 12 seconds. This delay poses significant challenges for real-time transaction settlements.

MACH Implementation Strategies:

  1. Security Borrowing: By running some MACH Network nodes (ABS operators), MACH leverages IG Layer’s design to borrow security guarantees.
  2. Bonding and Accountability: These security guarantees act as a bond for the ABS operators in the MACH Network. Incorrect behaviors lead to proof submission and bond slashing, ensuring operator accountability.
  3. Operator Participation: Future plans include releasing tutorials for those interested in becoming MACH operators, who can choose to engage in optimistic way verification or heavy ZK proof generation.

Fast Finality and Its Impact:

  • Fast finality is achieved through cryptographic techniques, including zero-knowledge proofs, significantly reducing the risk of fraud and double-spending. For rollups, this means transactions can be settled in near real-time, a crucial improvement for the scalability and interoperability of blockchain applications.

Through the MACH stack, including watchtower nodes that monitor transactions in real-time, AltLayer and Injective’s inEVM applications are safeguarded against fraud, ensuring a reliable and efficient system. This collaboration not only accelerates finality for rollups but also sets a new standard for security and efficiency in the DeFi space.

The Impact of Collaboration on DeFi Security and Interoperability

The collaboration between Injective and AltLayer is transforming the landscape of decentralized finance (DeFi) by enhancing both security and interoperability, crucial aspects for the widespread adoption and trust in decentralized applications (dApps). Here’s a look at the impact:

Innovation and Collaboration:

  • Injective’s inEVM: Offers a high-speed transaction processing environment with minimal fees, making it an attractive platform for dApp development.
  • AltLayer’s Rollup Technology: Enhances security by leveraging Ethereum’s vast asset base, thus protecting inEVM applications against vulnerabilities.

Backward Compatibility and Ethereum Alignment:

  • This partnership ensures that developers can easily migrate existing Ethereum applications or develop new ones on Injective’s platform without facing technical hurdles. It represents a significant step towards merging the vibrant ecosystems of Ethereum and Injective, making the platform more appealing to a broader range of developers and users.

Empowering Developers and Users:

  • By providing a secure, scalable infrastructure, the collaboration empowers developers to create innovative DeFi applications. This not only contributes to a more inclusive financial landscape but also paves the way for a future where DeFi can thrive in a secure, scalable, and cost-effective environment.

This synergy between Injective and AltLayer underscores the power of collaboration in driving forward the innovation within the blockchain space, setting new benchmarks for what is achievable in the realm of DeFi security and interoperability.

Conclusion

The collaboration between Injective Blockchain and AltLayer in advancing DeFi security and interoperability marks a promising leap toward establishing a safer, more integrated future for decentralized finance. Through the pioneering restaked security framework and the seamless integration with Injective’s inEVM, this partnership underscores a significant stride in bolstering the security landscape of on-chain applications while making them more scalable and cost-efficient. The advent of these technological advancements not only attracts a broad spectrum of developers and users but also sets a new standard for what DeFi projects can achieve in terms of security, efficiency, and interoperability.

Moreover, the roles of Injective inEVM and AltLayer within the inEVM ecosystem are pivotal, steering the course toward a more secure, scalable, and user-friendly DeFi landscape. Their contributions exemplify the power of collaboration and innovation in overcoming traditional barriers in the blockchain space, promising an enhanced ecosystem for developers and users alike. As we look toward the future, the impact of this collaboration extends far beyond immediate technical enhancements, signaling a transformative shift in how DeFi applications are developed, secured, and scaled, making the realms of Injective inEVM and AltLayer central to the evolution of decentralized finance.

--

--

Prateek Tripathi

Introducing Prateek Tripathi, a tech-savvy individual with a passion for all things crypto, blockchain, and coding.