Althea L1, A Focused Chain

The best technology makes something completely new possible. It represents a radical departure from existing paradigms to create a new way of thinking.

Introducing Althea L1

Althea L1 is a groundbreaking blockchain designed to support Infrastructure Finance (iFi) a new category of blockchain applications that combines concepts from DeFi (Decentralized Finance), DePIN (Decentralized Physical Infrastructure), and RWA (on-chain Real World Assets) to deliver an end-to-end, on-chain application. This spans the entire value chain, from customer payments to the capital and financing of building infrastructure.

In 2017, Hawk Networks developed the Althea Protocol, which commoditizes bandwidth. It enables seamless, autonomous data purchasing by the byte from one or multiple providers with high reliability. The protocol facilitates programmatic and transparent transactions, revolutionizing how telecom is funded, built, and operated.

The innovative design of the Althea Protocol allows it to operate efficiently between machines in a network and at the scale of the entire internet. It’s not just an alternative form of customer billing but an entirely new approach to payment and settlement between internet service providers.

Why Althea L1 Requires a New Settlement Layer

This unique machine-to-machine billing system demands a radically different settlement layer. Comparing blockchain throughput to credit card settlement is a common exercise, as both measure capacity in “transactions per second.” However, the similarities end there. The definition of a transaction and the limitations of its execution differ significantly in the blockchain environment.

The goal of Althea L1 is to bridge the gap between real-world transactions and programmable DeFi transactions. It enables applications like the Althea Protocol to thrive by using an account abstraction called Liquid Infrastructure, which integrates seamlessly with both domains.

A Hybrid Approach for Two Distinct Transaction Types

Serving these two types of transactions on the same platform creates inherent tensions, as each has unique requirements and optimizations. These differences may not be immediately obvious but can prevent scalability if overlooked. By carefully designing an environment tailored to each use case, Althea L1 stands out as a platform capable of hosting both types of transactions effectively.

DeFi Transaction Properties

• Finality can be slow because internal consistency matters more than absolute certainty of execution.
• Failing transactions do not disrupt general operation.
• Fees can vary widely, with user activity adapting to fee changes.
• Parallelism is in tension with composability: the more parallel a programmable transaction, the fewer applications it can interact with simultaneously.

Real-World Transaction Properties

• Finality time is critical; payments must be final within a few seconds.
• Reliability is essential; fast finality must be consistently available.
• Fees must be predictable; user activity cannot adapt but must be facilitated. For example, a payment method failing while buying gas is unacceptable.
• Payments are easy to parallelize without losing functionality. Sequencing is only relevant in a minority of transactions.

How Althea L1 Balances These Needs

Althea L1 provides a hybrid environment where payments for real-world goods are processed quickly and efficiently while connecting to a programmable environment that can be dynamically throttled based on payment demand. This allows iFi applications like the Althea Protocol + Liquid Infrastructure to operate reliably for business use while remaining natively linked to DeFi capabilities.

As revenue from real-world transactions is fed into DeFi primitives like Liquid Infrastructure, layers of composable DeFi can be seamlessly integrated without disrupting customer transactions for bandwidth or other off-chain goods.

Dynamic Blockspace Allocation

Althea L1 assigns blockspace differently based on transaction type, creating an incentive structure that prioritizes the reliability of microtransactions used in utilities and telecom while balancing DeFi usage dynamically.

For example, separating Althea Protocol transactions from other on-chain traffic optimizes throughput and reliability for MicroTx transaction types. If Althea L1 faces high transaction demand, the protocol can raise the minimum size of a MicroTx transaction. This adjustment compels Althea Protocol clients to increase their payment threshold, ensuring the blockchain remains functional and includes Althea Protocol transactions in a timely manner.

Conclusion

Althea L1 is a pioneering blockchain that bridges real-world transactions and programmable DeFi, enabling applications like the Althea Protocol to thrive. Its hybrid design prioritizes reliability for microtransactions while supporting scalable DeFi applications, seamlessly integrating on-chain programmability with real-world practicality. By dynamically adapting to transaction demands, Althea L1 sets a new standard for blockchain-enabled infrastructure—purpose-built for utilities and infrastructure—transforming how networks are built and operated.

For more details about Althea L1, the Althea Protocol, and Liquid Infrastructure, refer to the whitepaper.

This is the first in a series of blog posts about Althea L1 and its features. Stay tuned for more updates here soon.

About Althea: Since 2018, Althea’s technology has brought blockchain-enabled internet access to thousands of homes and even the most challenging topographies. To read more, go to althea.net. 

To get involved, join Althea’s Discord: https://discord.gg/3w2ZPKue