Introduction

Ethereum’s scalability limitations become evident during periods of high network activity, as transaction volumes increase, the network experiences congestion, leading to higher gas fees and slower transaction processing times.

To address these challenges, rollups were introduced as a method to process transactions faster without compromising the security of the Ethereum chain. Rollups operate by bundling multiple transactions into batches, processing them off-chain, and submitting proofs to the main chain, reducing congestion and transaction costs.

The concept of rollups was proposed as early as 2018, with projects such as Arbitrum and Optimism beginning development shortly after. In 2020, the rollup-centric roadmap gained notable support from Ethereum co-founder Vitalik Buterin, marking a pivotal step in Ethereum’s efforts to scale effectively.

Rollups are now widely adopted within the Ethereum ecosystem to solve the network’s scalability challenges. Caldera, a blockchain infrastructure company, provides rollup-as-a-service, enabling developers to create scalable layer 2 and 3 solutions with battle-tested frameworks. Caldera’s offerings simplify the process of deploying rollups, reducing costs and providing technical support to developers.

What is Caldera?

Source: Caldera

Caldera is a blockchain infrastructure company that provides Rollup-as-a-Service on Ethereum. It helps projects launch high-performance Layer 2 (L2) and Layer 3 (L3) rollups using reliable rollup stacks such as Optimism Bedrock, Arbitrum Nitro, ZK Stack, and Polygon CDK (Chain Development Kit).

With its streamlined approach, Caldera allows projects to launch rollups with a single click, eliminating the need for an in-house engineering team. The company manages deployment, customization, maintenance, and security, freeing builders to focus on their core products and innovation.

Caldera has delivered blockchain solutions for reputable projects like Ape Chain, Manta Pacific, Plume Network, and Kinto.

Team

Matthew Katz

Matthew is the Co-founder and Chief Executive Officer of Caldera, he has a background in Computer Science and Software Engineering, and he is a former student of Stanford University, United States of America.

Parker Jou

Parker is the Co-founder and Chief Technical Officer at Caldera and a former Computer Science student at Stanford University, United States of America.

James Semmonella

James is Caldera’s Head of Growth and Business Development, having built experience over the years as a Business Developer across web2 and web3 companies. He graduated from Bates College, United States of America, and holds a Bachelor’s degree in Political Economics.

Fundraising

Source: Caldera

Caldera was established in 2022 and has raised over $24 million across two funding rounds; a Seed fundraising round in 2023 raised $9 million from Dragonfly Capital, Sequoia Capital, 1kx, Ethereal Ventures, and Neo.

Its Series A fundraising round in 2024 raised $15 million from Founder’s Fund, Lattice, MH Ventures, ArkStream Capital, and other investors to build Metalayer, a unified rollup ecosystem.

What are Rollups?

Rollups are a layer 2 scaling solution designed to improve the scalability and efficiency of blockchain networks. They operate as separate blockchains that process transactions off-chain and settle them on-chain on a layer 1 blockchain, such as Ethereum.

A Graphical representation of how Rollups works (Source: Cyfrin)

There are two primary types of rollups: Optimistic Rollups and Zero-Knowledge (ZK) Rollups.

• Optimistic Rollups assume all transactions are valid by default, although fraud proofs are conducted to identify and address invalid transactions.
• Zero-knowledge rollups use cryptographic validity proofs, such as zk-SNARKs, to verify transactions off-chain. With ZK rollups, valid transactions can be proven without revealing sensitive information.

You can learn more about Rollups in this Gate Learn article.

Rollup Stacks

Rollup Stacks are frameworks that provide the foundational components required to build and deploy Rollups. These stacks simplify the development process by offering developers pre-built libraries, modules, and protocols for creating customized layer 2 (L2) or layer 3 (L3) blockchain solutions.

Caldera uses tested and trusted Rollup Stacks already in use by blockchains, securing billions of dollars in total value locked (TVL). Users benefit from lower transaction costs, up to 10-100 times cheaper, faster block times, and as low as 250 milliseconds compared to Ethereum. These Rollups also fully support Ethereum smart contracts and developer tools, making them compatible with the broader Ethereum ecosystem.

The available Rollup Stacks on Caldera are Arbiturm Nitro, Optimism Bedrock, ZK Stack, and Polygon CDK.

Arbitrum Nitro

Arbitrum Nitro is an Optimistic Rollup stack that powers Arbitrum One, the flagship Arbitrum chain, and Arbitrum Nova, a cost-effective chain designed for gaming applications. Arbitrum Nitro secures over $6 billion in total value locked (TVL) across various chains currently in production.

Also, Arbitrum Nitro offers additional cost-reduction options for data availability through Arbitrum Anytrust or Celestia DA.

Optimism Bedrock

Optimism Bedrock is another Optimistic Rollup Stack that powers the Optimism Mainnet and the Base chain.

The Stack includes optional support for further cost reduction through Celestia DA for data availability. Optimism Bedrock also offers the ability to integrate with the Superchain, a future network of interoperable chains under Optimism.

ZK Stack

ZK Stack is a modular, open-source framework for building custom zero-knowledge (ZK) powered hyperchains using zkSync infrastructure.

The ZK Stack features native account abstraction and cross-chain composability through hyperbridges. The framework also permits the integration of alternative data availability (DA) solutions.

Polygon CDK

Polygon CDK is a Zero-Knowledge Rollup stack that powers Polygon zkEVM, the flagship Zero-Knowledge chain within the Polygon ecosystem.

For data availability, Polygon CDK provides optional support for zkValidium or Celestia DA, It also supports native cross-rollup bridging, leveraging Zero-Knowledge proofs for interoperability.

RaaS (Rollups-as-a-Service)

Rollup-as-a-service (RaaS) is a protocol that allows developers to build, deploy, and maintain custom Rollup chains. RaaS simplifies launching Rollups by providing the framework and tools required for managing Rollup chains.

At Caldera, they provide the technical support necessary to manage a Rollup, without clients having to write a single line of code.

Main Features of Caldera: Developer Options

Alternative Data Availability

Data Availability ensures that all participants in a network have access to the complete set of blockchain data required to validate transactions.

For rollups, the conventional approach involves posting all rollup blocks onto Ethereum, which serves as the Data Availability (DA) layer. However, this method often results in extremely high and volatile costs, accounting for over 95% of the expenses of maintaining a rollup.

Caldera offers NEAR, Eigen, and Celestia as alternative data availability layers to help lower associated costs and increase throughput, significantly improving rollups’ long-term scalability.

Decentralized Sequencing

Source: Caldera

Decentralized sequencing refers to the process of ordering and validating blockchain transactions in a manner that eliminates reliance on a single controlling entity.

Most rollups in production today, including Arbitrum One, Optimism Mainnet, Base, and zkSync, rely on centralized sequencers. While functional, these centralized systems introduce potential vulnerabilities, such as creating a single point of failure, delaying transactions, or reordering transactions to extract Maximal Extractable Value (MEV).

Caldera addresses these issues by integrating Espresso, a leading decentralized sequencing network.

Guardian Nodes

Source: Caldera

The Guardian Node system incentivizes third parties to verify roll-up blocks, enhancing the security and decentralization of the network. A key feature of this system is the light verifier, which enables Guardian Node operators to verify Nitro batches using standard hardware, eliminating the need to run a full Arbitrum node.

Teams can introduce Guardian Nodes to their users through a Node Sale, where “keys” are distributed to authenticate a node’s eligibility to submit claims and earn rewards. This mechanism allows participants to operate a Guardian Node on a specific rollup.

The Guardian Node system provides teams with the ability to:

• Strengthen security through increased decentralization
• Raise funds to support their projects
• Drive demand for their native token
• Enhance their brand and foster community engagement

Native Gas Token

Builders can choose if they want a native ERC 20 token, which can be their protocol token or a stablecoin.

Bridged USDC

Source: Caldera

Caldera integrates Circle’s Bridged USDC Standard, into Optimism Bedrock and Arbitrum Nitro rollups. This allows users to store, pay, trade, borrow, and lend using bridged USDC, which seamlessly converts to native USDC upon upgrade. This eliminates the need to swap to a new asset, ensuring a smooth user experience.

Main Features of Caldera: User Facing Tools

Block Explorer

HYCHAIN Block Explorer by Caldera (Source: Caldera)

The Caldera Chain includes a user-friendly Block Explorer that provides easy access to essential blockchain data (address balances, transaction history, verified contracts, network statistics, etc). Through integration with Blockscout, Block Explorer’s theme and styling can be customized upon request to align with users’ preferences and branding needs.

Bridge UI

A Bridge Interface for Manta Pacific (Source: Caldera)

The Caldera Chain includes an automatically deployed, web-based Bridge User Interface that facilitates the deposit and withdrawal of assets to and from your Caldera Chain. This interface enables seamless asset transfers between your Caldera Chain and various public blockchains, offering a clear and user-friendly experience for both developers and end-users.

Testnet Faucet

Caldera Chains includes a built-in Testnet Faucet, which users can use to request the chain’s native cryptocurrency token for testing purposes. This feature simplifies access for developers, testers, and new users, allowing them to evaluate the blockchain’s functionality and features.

How Does Caldera Work?

Source: Caldera

Caldera Chains are compatible with most EVM-compatible blockchains. While most Caldera Chains are settled on Ethereum Layer 1 or Polygon, support is available for various EVM chains, including Binance Smart Chain, Aurora, Avalanche, Evmos, and more.

Caldera Chains uses a modular architecture that separates the execution and data availability layers. This design offers flexibility in directing transaction data to an EVM settlement layer, such as Ethereum or Polygon, or to a dedicated data availability layer, like EigenLayer or Celestia. This approach allows users to tailor their solutions based on specific requirements and preferences.

How Does Caldera Maintain Reliability and Security?

Caldera adheres to industry-standard best practices to ensure the reliability and availability of its services. All infrastructure is hosted on Amazon Web Services (AWS) and distributed across multiple regions for enhanced resilience. The Kubernetes configuration incorporates an auto-failover mechanism to keep the system running during sequencer downtime and autoscaling to adjust resources during traffic surges dynamically.

In the event of an L1 RPC fallback, where the connection between a Rollup and an Ethereum mainnet node is severed, a proxy service aggregates multiple top RPC providers and re-routes traffic to ensure continued operation during downtime. It also provides a status page for every mainnet chain to monitor the operational status of the blockchain.

Caldera ensures security by utilizing multi-signature (multisig) ownership for mainnet Rollup contracts, requiring multiple approvals to authorize significant actions. It also employs a dual authorization system for production environments, where no individual can access or modify the environment without a second team member’s approval. These measures enhance the integrity and security of its operations.

Testnet

Source: Caldera

To get started with a Testnet environment, head over to the Caldera dashboard and follow these steps participate:

1. Sign up or log in through the Authorization Page.

Source: Caldera

1. Click “Get Started” from the Manage Rollups Page.
2. Select your Rollup framework (Arbitrum Nitro, Optimism Bedrock, zkSync’s ZK Stack, Polygon CDK), then choose the Testnet network type on the Deploy New Rollup Page.

Source: Caldera

1. Select a native gas token and set relevant identifiers (Rollup Name, Subdomain, or Chain ID).
2. Click the “Deploy New Rollup” button to launch your Testnet Rollup.

Mainnet

To build a blockchain with Caldera, interested builders can book a demo with Caldera and discuss in detail with the team regarding the parameters, Rollup Stack, integrations, and the chain of your choice.

Caldera Products

Metalayer

Source: Caldera

Metalayer is an Ethereum Rollup infrastructure platform developed by Caldera to interconnect Rollup frameworks.

Despite Rollups improving Ethereum’s scalability, fragmented frameworks create isolated liquidity, inefficiencies in fund transfers, and challenges for operators and validators. Metalayer addresses these issues as an omnichain abstraction layer that unifies Rollup ecosystems for seamless connectivity and multi-rollup application development.

This unified approach unlocks new network and token design possibilities across Zero-Knowledge (ZK) and Optimistic Rollup Stacks, streamlining the developer experience and enhancing Ethereum’s scalability.

Vulcan

Source: Caldera

Vulcan is a service designed to upgrade Rollups to Stage 1 Rollups, considered the industry standard. Stage 1 Rollups are equipped with technical features that increase the degree of decentralization, such as the implementation of proof systems, governance mechanisms, and heightened security standards.

Clients

Caldera is trusted by over 75 Web3 projects, including Plume Network, ApeChain, HYCHAIN, Zerion, Injective, Primodium, etc.

Plume Network

Plume Network is a modular L2 blockchain for real-world assets (RWAs) that integrates asset tokenization and compliance providers into the chain.

ApeChain

ApeChain is a gaming-focused L3 designed to serve as a home base and cornerstone for the Ape community, offering high performance, ultra-low fees, and a dedicated infrastructure layer to games in the ApeCoin ecosystem.

HYCHAIN

HYCHAIN is an L2 blockchain designed to empower both gamers and game developers in Web3 by eliminating friction associated with onboarding and development on-chain, empowering games aiming for widespread adoption.

Integrations

Caldera integrates over 50 Web3 services for builders to customize their Rollups with features like Bridges for seamless asset transfers, Oracles for reliable off-chain data, and Account Abstraction for flexible wallet interactions.

Redstone

Redstone is an oracle that delivers frequently updated, reliable, and diverse data feeds for your decentralized application (dApp) and smart contracts on multiple L1s & L2s.

Blockscout

Blockscout provides a comprehensive, easy-to-use interface for users to view, confirm, and inspect transactions on EVM Caldera Chains.

Particle Wallet

Particle Wallet is a modular, customizable wallet infrastructure providing a unified interface for facilitating interaction with accounts derived from external Web3 wallets or Web2-based social logins.

News on Caldera

Caldera Acquires Hook Odyssey

Source: Caldera

Caldera acquired Hook Odyssey protocol, a perpetuals trading platform for memecoins and NFTs that operated as a rollup based on the Arbitrum Orbit framework. The Hook development team will join Caldera to build Metalayer, an Ethereum rollup infrastructure platform.

Caldera Adds Support for Solana Virtual Machine

Source: Caldera

Caldera is collaborating with SOON (Solana Optimistic Network), a Solana Virtual Machine (SVM) powered rollup stack, to bring Solana to Ethereum rollups. This partnership makes Caldera the first multi-virtual Machine Rollups-as-a-Service (RaaS) platform, adding support for Solana and Ethereum Virtual Machines.

Conclusion

Caldera simplifies blockchain development by handling its client chains’ deployment, maintenance, and security through a robust and customizable Rollup-as-a-Service solution. With support for various Rollup Stacks, EVM-compatible chains, and integrations with Web3 services, Caldera empowers developers to build scalable, efficient, and secure blockchains tailored to their needs.