Althea L1: Bringing Infrastructure On-Chain
The high-availability Hybrid EVM blockchain answers the question: “What if you could liquify physical assets non-custodially and use them in DeFi?”
What is it?
Purpose-built for infrastructure and connectivity, Althea is a global, decentralized, multi-entity ecosystem that operates projects such as a high-speed broadband ISP (Internet Service Provider) platform, and is preparing to launch its own Layer 1 blockchain for multi-stakeholder networks.
Value Proposition
Althea is a platform for micro-payments and for revenue generating devices/infrastructure. One of the ways Althea already does this is by providing internet service in a way that sets it apart from traditional ISPs.
Generally users needing internet, access it via ISPs that are centralized and costly. And users have no control over the broadband routes that they use or are given.
Enter Althea, a community-run decentralized alternative, which allows participants to earn revenue by hosting Althea hardware, providing bandwidth, and supporting the network’s service layer. Essentially people can buy and sell bandwidth between routers and pay per byte of data in a “streaming manner”. This incentivizes more people to install internet hardware in not so well connected regions thereby bridging the “Last Mile” gap, something that traditional ISPs have struggled to do.
The decentralized nature of this infra also means that users have the freedom to choose internet service based on cost/connectivity quality.
Althea Ecosystem
The protocol already has a broad range of community integrations and utilities including.
So how does it work?
Staying with the ISP service for now… Althea works in the following way:
The service aspect — Althea mesh Internet process
Subscribers to Althea load their wifi router with digital currency (stablecoin) for internet access. This rooftop transmitter/fiber cable forwards bandwidth as part of an open access network which generates rewards to offset the host/subscriber’s internet cost.
Althea network organizers help hosts/subscribers in their area install the equipment to get on the network, and provide technical support. They also promote their network to get subscribers to sign up so that relays and gateways can make money.
The blockchain aspect
- The blockchain processes txs between Althea’s nodes on the physical network. The currency used in transactions between routers is a USD-pegged stablecoin.
- Doing so protects users from currency fluctuations and high tx fees (prev. an issue when Althea used Ethereum)
- Validators compile individual txs into blocks. → Standard dPoS procedure in Cosmos Ecosystem.
Liquified Infrastructure (Li-Fra)
Quite possibly the most exciting prospect of Althea L1 is that of Liquified Infrastructure which allows RWA (Real World Asset) owners to tokenize their infra and unlock liquidity in a non-custodial manner.
While most RWAs that are on-chain right now rely on a trusted custodian, Althea L1 differs in that it generates an NFT representation of RWA’s generated revenue, that lives on-chain and can be used in DeFi activities such as account transfer, revenue aggregation, device wallet management and more.
A basic example:
- You own a vending machine that accepts payments on the blockchain via USDC and it makes about US$ 1,000 each month.
- Because it has a private address that receives on-chain payments, this can be liquified on Althea L1 by turning the private address into an representative NFT that can be traded.
- By doing this, you could sell the NFT representation of your revenue-generating physical infrastructure to someone else.
- The buyer would then be in possession of infrastructure generating around US$ 1,000 monthly.
This could work for a number of machines and services, such an EV charging station where customers pay to recharge their vehicles, or to bootstrap infra L2 networks like energy grids.
The approach also allows for partial ownership of infra that could see people owning a portion of a cell tower or even a length of fibre optic cable.
Note: The concept of Li-Fra on Althea L1 can be applied to anything that requires both a small tx and instant finality.
Althea L1 Tech Stack
Cosmos SDK
PoS consensus mechanism with an Ethermint EVM execution layer (similar to Canto).
Price-Aware Protocol
Allows internet users to quickly switch to cheaper sources of bandwidth when a less expensive route is identified.
Blockchain Payment System
This debits and credits funds based on a user’s bandwidth usage. Althea routers automatically pay the participants hosting the hardware/network and costs for these micro-txs can be as low as 30 cents (USD).
Wireguard Encryption
This protects participants’ connections, so that internet traffic cannot be observed or censored.
Contract-Secure Revenue
Allows developers deploying on Althea L1 to earn revenue whenever their Smart Contracts are executed.
Althea L1 Tokenomics
Althea L1 will have its own coin, $ALTHEA, which will see stakers/delegators of the token rewarded via stablecoin tx fees generated between routers (and other micro txs) and through inflation.
At mainnet launch tokens will be distributed to early supporters, community participants, the Republic 2019 airdrop, Foundation and team.
Why Cosmos?
The ecosystem provides a cheaper way to onboard users than other ecosystems. Originally Althea operated via Ethereum… but high tx fees and volatility led to Althea network outages and high costs. It is currently functioning on Gnosis but plans to migrate its activity to its own sovereign chain via Gravity Bridge.
Cosmos chains also happens to have fast finality, an essential component for providing quick broadband.
An emerging landscape…
Althea is part of a growing number of DePIN projects (Decentralized Physical Infrastructure Networks) that may be part of the focus of the 2024 narrative.
Some of the DePIN Landscape
These projects are blockchain protocols that manage physical infrastructure and can take the form of GPU computing, data storage, road mapping, and more.
Focusing only on its ISP platform, Althea has already seen success. Simply focusing on its ISP offering, it has already seen growth that’s exceeded other DePIN projects even within Cosmos Ecosystem.
Althea’s addition in revenue also coincides with the growth in the number of users.
Recent Developments & Roadmap
As of 2023 Althea saw revenue growth reach 85% CAGR (Compound Annual Growth Rate) and it launched networks in 14 U.S. states.
Mainnet is set for February 28th this year, after which the project will focus on preparations for scale and promoting the growth of Liquid Infrastructure through capital investments in projects that may accelerate Althea builds and the L1’s adoption.
What is Cøsmostation?
Cøsmostation is a Althea genesis validator and a key player in the Althea ecosystem, providing invaluable infrastructure legos essential for scaling and onboarding users onto blockchain networks. Cøsmostation also bootstraps networks and onboards end-users.
Mintscan
Moreover, Cøsmostation offers its own blockchain explorer, Mintscan. It provides insightful interactions with chain data across various networks and also features a user-centric design, with transparency placed at the core of its ethos.
