Quant Reveals World’s First ‘Layer 2.5’ in Multi Ledger Rollup

Quant has launched its Multi-Ledger Rollup as part of the Quant Fusion platform, marking the introduction of what the company describes as the world's first "Layer 2.5" rollup technology. 

This development, announced on the company's 10th anniversary, allows for interoperability across multiple ledgers, enabling assets and smart contracts from different blockchains to function in a unified environment. The technology addresses longstanding issues in blockchain systems, such as asset silos and the need for complex bridging mechanisms, by connecting public and private networks without compromising security or scalability.

Quant Fusion’s Multi-Ledger Rollup: Breaking Through Blockchain Barriers

Traditional rollups have operated within the confines of a single blockchain, focusing on increasing transaction throughput and lowering fees in isolated ecosystems. This approach has led to fragmentation in the blockchain space. Assets often remain isolated on individual chains, necessitating the reissuance of the same token on each Layer 1 network. Interoperability has typically depended on bridging solutions, which can create security risks and add operational costs.

Quant Fusion's Multi-Ledger Rollup alters this setup. Designed for institutional applications, it supports the issuance and transfer of digital assets on public blockchains while maintaining security, privacy, and scalability standards. The patented "Layer 2.5" technology integrates with multiple ledgers, including various blockchains and distributed ledger systems.

As a result, assets and smart contracts from heterogeneous chains can execute in a shared space. This provides cross-chain interoperability that is secure, private, and scalable, meeting the requirements of institutions engaging with public blockchains.

In a statement from the announcement, Quant noted: "On our 10th anniversary, Quant is redefining what’s possible in blockchain. Today, we’re proud to unveil Quant Fusion’s Multi-Ledger Rollup, the world’s first “Layer 2.5” rollup technology. More than just a scaling solution, it is a transformative step forward: capable of interoperating across multiple ledgers simultaneously and unifying duplicated assets across different blockchains."

Enabling New Use Cases in Blockchain

The Multi-Ledger Rollup goes beyond enhancing current blockchain operations to support specific applications:

Cross-Network Token Interactions: The Multi-Ledger Rollup enables assets from permissioned enterprise networks to engage with tokens from permissionless chains like Ethereum, while retaining trust from the original chain. For instance, a regulated asset on a Hyperledger Besu network within a financial institution can act as collateral in a DeFi protocol on Ethereum, bypassing the need for bridging or wrapping.

Accessing Public Liquidity with Reduced Risk: Holders of regulated tokens on permissioned blockchains can tap into liquidity from permissionless networks while adhering to compliance measures, such as KYC and whitelisting. This allows regulated organizations to conduct on-chain trades in a controlled manner, avoiding interactions with unverified parties.

Unified Asset Representations: Instead of viewing the same token on different chains as distinct entities, the rollup can establish canonical versions. A stablecoin with presence on multiple chains can thus function as a single asset, which simplifies user interactions and increases overall liquidity.

Multi-Party, Multi-Chain Smart Contracts: Developers can create applications that process inputs and manage tokens from multiple chains simultaneously. An example includes a decentralized insurance protocol that collects premiums from Ethereum, tracks supply chain data on Hyperledger Fabric, and processes claims on Solana, all within one atomic smart contract execution.

These use cases demonstrate how the Multi-Ledger Rollup integrates diverse ledger systems, allowing for efficient operations across networks.

Security Features for Institutional Adoption

Security remains a core component of Quant Fusion. The platform includes Fusion Firewall, a blockchain firewall with decentralized access controls. Users can specify who interacts with their smart contracts and accounts, providing enterprise-level protection. This makes the system applicable for regulated financial services, balancing security with the flexibility of decentralized environments.

The firewall operates by enforcing access rules in a decentralized manner, ensuring that only authorized entities participate in transactions or contract executions. This addresses vulnerabilities often associated with open blockchain interactions, such as unauthorized access or exploits in bridging protocols.

By incorporating these controls, Quant Fusion enables institutions to deploy blockchain solutions that comply with regulatory standards, leveraging the benefits of public networks.

How to Utilize the Multi-Ledger Rollup?

Users can access the Multi-Ledger Rollup through Quant Connect. The process involves creating an account on Quant Connect and referring to the technical documentation in the developer portal. Once set up, the platform enables users to view rollup transactions, monitor account data, and manage deployed smart contracts.

Quant Connect serves as the interface for interacting with the rollup, providing tools for developers and institutions to integrate the technology into their operations. The documentation covers integration steps, including connecting to multiple ledgers and configuring smart contracts for cross-chain functionality.

Conclusion

Quant Fusion's Multi-Ledger Rollup provides interoperability across multiple ledgers through its "Layer 2.5" architecture, allowing unified asset handling and cross-chain smart contract execution. It addresses fragmentation by eliminating the need for bridges, enhances security with features like Fusion Firewall, and supports institutional use cases such as regulated token interactions and multi-chain applications. 

The technology, accessible via Quant Connect, offers a practical means for institutions to engage with public blockchains securely. This launch underscores the value of connected ledger systems in improving efficiency and compliance in blockchain operations, providing a structured approach to cross-network transactions.

Sources

• Quant Fusion multi-ledger rollup launches on Quant's 10th anniversary: https://quant.network/news/world-first-quant-fusion-multi-ledger-rollup-launches-on-quants-10th-anniversary/
• Quant Fusion: https://quant.network/quant-fusion/
• What Is Quant (QNT) And How Does It Work: https://coinmarketcap.com/cmc-ai/quant/what-is/