With the explosion of blockchain technology, there are many new blockchains being born. However, the interaction between blockchains currently still faces many obstacles, leading to fragmentation of users, data and liquidity across applications deployed on different chains. This is one of the reasons for the emergence of LayerZero – a new cross-chain platform designed to provide an omnichain interoperability protocol that unifies dApps across various blockchain platforms. Let's find out with Bigcoin what LayerZero is through the article below.

1. Ideas

1.1. What is LayerZero?

  • LayerZero is a cross-chain infrastructure protocol, LayerZero introduces a new concept called Omnichain Dapps (odApps). With its architecture, LayerZero allows developers to create odApps as easily as developing dApps for a single network like Ethereum or Polygon while being able to leverage aggregation capabilities across networks.

  • LayerZero is supporting blockchains including Ethereum, Arbitrum, Polygon, Optimism, Fantom, BNB Chain, Avalanche, Metis, Harmony, Aptos, Celo, etc. and many more.

1.2. Mechanism of action

LayerZero solves the security problem by using Ultra Light Node, a security feature that helps the platform save costs on the Middle Chain.

Typically, cross chain platforms will use two steps to exchange: Middle Chain and On-Chain Light Node to transmit information between chains. Specifically:

  • Middle Chain is an intermediary chain that helps authenticate and relay messages between chains. In this model, the Middle Chain is given full signing authority for all messages, making it a single point.

  • On-Chain Light Nodes are on-chain light nodes responsible for receiving and validating every block header for each chain in pairs on the opposing chain. Proofs of transactions containing messages are relayed and validated on-chain based on block headers. This is the safest way to pass messages between chains.

However, because the Middle Chain will be granted full authority to authenticate transactions, if the Middle Chain is hacked, there will be risks. Therefore, LayerZero performs confirmation similar to On-chain Light Node but instead of keeping all block headers sequentially, block headers are streamed on demand by decentralized Oracles.

1.3. Highlights

  • As the first Omnichain dApps platform, it can well support activities such as Lending, AMM, and administration.

  • Acting as a base protocol layer allows different applications to operate on top of it and currently supports many blockchains.

  • Optimize cost, security and speed thanks to Ultra Light Node technology.

2. Products

There are currently 2 new products built on LayerZero's chain: Stargate Finance (Cross-Chain Bridge) and Omni X (omnichain NFT platform).

2.1. Stargate Finance

The first dapp to operate on LayerZero. Stargate supports building liquidity pools on blockchains that LayerZero supports, thereby forming a cross-chain liquidity network connecting blockchains.

Works like a regular AMM model, but in a more upgraded version that allows users to directly convert tokens from one chain to another chain's tokens. For example, you can swap USDT on Ethereum network to BUSD on BSC network on Stargate through just 1 transaction. No need for bridges or other complicated conversion steps.

The project has launched the $STG token and is listed on major exchanges including Binance.

2.2. Omni X

The first Omnichain NFT platform on LayerZero, operating similar to the NFT Marketplace model.

The project will launch Omnichain NFTs and simultaneously support users of NFT types on different chains. For example you can buy or sell NFTs from the Ethereum network over the Solana network through Omni X.

Currently, the project is open for Beta test registration so there is not much information yet.

3. Team member

  • Caleb Banister - Co Founder: has experience in operating and developing technology services for mobile applications.

  • Ryan Zarick - Co-Founder & CTO: Ryan studied at the University of New Hampshire with 2 bachelor's and master's degrees in computer science. He has experience in the field of AI & Big Data.

  • Bryan Pellegrino - Co-Founder & CEO: graduated from University of New Hampshire with a master's degree in Computer Science. He also has experience in the field of AI as president of Rho AI - an organization specializing in research and development of AI products.

4. Investors and partners

  • In 2021, the project calls for 2 million USD.

  • On September 16, 2021, LayerZero Labs raised 6 million USD in a Series A funding round led by Binance Labs and Multicoin Capital with participation from Defiance, Spartan, Hypersphere Ventures…

  • In March 2022, LayerZero Labs raised an additional 135 million USD with the participation of large funds such as Sequoia Capital and a16z.

5. Tokenomics

Currently, the project has not announced official tokenomics. Therefore, don't forget to follow Bigcoin so you don't miss the latest updates about the project in the near future!