Introducing the LayerZero Project
LayerZero (ZRO) is a multi-channel interoperability protocol designed to facilitate lightweight message transmission across different blockchains. They ensure authentic and guaranteed message delivery with configurable reliability, acting as a “blockchain of blockchains” to enable direct communication between different networks. Aiming to provide the ultimate interoperability solution, LayerZero supports seamless and independent cross-chain transactions.
Although the protocol lacks a dedicated roadmap, they do plan to integrate with more blockchains and DeFi protocols in the future. Potential plans include introducing a governance token and establishing a DAO. LayerZero’s decentralized verification process eliminates the need to trust a single entity, promoting secure and independent cross-chain communication. The protocol focuses on optimizing independence, scalability, and generalization to enable adaptable and flexible cross-chain interoperability.
About the ZRO airdrop event
On June 20 at 18:00 (Vietnam time), LayerZero finally opened the airdrop request link. This link allows users to check if they are eligible to participate in the LayerZero airdrop, an opportunity for early backers and supporters to receive free tokens. Airdrops are often used by blockchain projects to distribute tokens, encourage participation, and reward the community.
LayerZero Labs plans to airdrop 12 million ZRO tokens in the first half of 2024 to qualified users who made transactions on the Ethereum mainnet from Q1 2023 to Q3 2023. Holding and usage of ZRO may increase Get eligible for future airdrops and benefit from the LayerZero ecosystem.
Key features of ZRO
ZRO is the native token of LayerZero, a multi-channel interaction protocol. Below are the key features and use cases of the ZRO token.
Governance tokens: ZRO holders can participate in governance proposals and voting, influencing the future development and policy of the LayerZero protocol.
Staking rewards: Users can stake ZRO tokens to earn rewards, incentivizing long-term holding and active participation in the ecosystem.
Conditions for receiving airdrop: Holding and participating in LayerZero projects using ZRO can increase eligibility for future token airdrops and benefits.
Transaction fees: As LayerZero adoption increases, the ZRO token can be used to facilitate and secure cross-chain transactions on supported blockchains.
Ecosystem and applications
Stargate: The first DApp built on LayerZero, Stargate is a synthetic asset bridge that enables cross-chain liquidity transfer in a single transaction. They allow users to exchange native tokens on different chains without the need for intermediary tokens.
Wide adoption: LayerZero supports 50+ networks and has integrated with 80+ dApps across various verticals, including DeFi, gaming, enterprise, and NFTs.
Ultra-Light Nodes (ULNs)
Instead of relying on complex light nodes or expensive centralized bridges, LayerZero uses innovative Ultra-Light Nodes (ULN) to validate transactions across chains. These ULNs act like lean bridges, extracting only the necessary data from the source blockchain and integrating it into the destination chain.
This lightweight approach significantly reduces the cost and complexity associated with cross-chain communication, making LayerZero more scalable and practical for use on many different blockchains, even those with High transaction fees like Ethereum.
Endpoints LayerZero
At the core of LayerZero are their Endpoints – smart contracts deployed on each supported blockchain. These Endpoints act as nodes, sending, verifying, and receiving messages directly between threads.
Unlike traditional bridges that rely on intermediary chains, LayerZero Endpoints maintain a direct connection to every node in the network, enabling seamless and trustless transactions across ecosystems.
The lightweight nature of Endpoints ensures cost-effective operations, even on expensive Layer 1 chains like Ethereum.
Decentralized Oracles
To facilitate cross-chain verification, LayerZero uses decentralized oracles such as Chainlink and Band Protocol. These oracles read block headers from one chain and send them to another chain, providing data needed for Endpoints to validate transactions.
When Endpoints on Chain A receive the message, the oracle will collect the relevant block header data and send it to Endpoints on Chain B. If the data and its proof from the oracle and relayer are correct then the transaction will posted on Series B .
Relayer
The Relayer plays an important role in the LayerZero ecosystem by reading the proof for a given transaction and performing on-chain verification. Once verified, they send and execute the message on the destination chain, ensuring the integrity and security of cross-chain transactions.
Censorship-resistant and immutable
LayerZero is designed to be censorship-resistant, ensuring that all messages are delivered without selective interference and maintaining the integrity of cross-chain communications.
Furthermore, the underlying technology for sending and receiving messages is immutable, meaning it will never change. This ensures long-term reliability in the protocol.
Development without licensing
One of LayerZero’s main strengths is its license-free nature. Anyone can run the infrastructure needed to serve applications using the protocol, fostering an open and decentralized ecosystem for cross-chain development.
This accessibility empowers developers and communities to build innovative cross-chain applications without barriers, promoting a vibrant environment and blockchain interoperability.
Oracle
Oracle forwards block headers from the source chain to the destination chain and helps secure the network. The Relayer sends transaction proof to the ULNs on the destination chain. In other words, it sends messages between different blockchains that communicate via LayerZero. The costs for Oracle and Relayer are paid by users making cross-chain transactions.
How does LayerZero work?
In the LayerZero protocol, the Decentralized Verification Network (DVN) is essential to check the validity of sent messages. When application owners use LayerZero for their projects, they can set up DVN according to their specific needs. These networks can use a variety of methods for verification, such as bridges, oracles, attestation services, or even other blockchains themselves, which are integrated as DVNs in Version 2 (V2).
LayerZero aims to make it easy for different blockchain networks to connect seamlessly. This means that users can make transactions on many different chains without realizing that they are using different networks. They support decentralized applications (DApps) across multiple blockchain platforms, whether they use EVM (Ethereum Virtual Machine) or non-EVM systems, essentially creating the first omnichannel applications on Global.
Where can I buy and trade ZRO?
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Project overview
Disclaimer
Blogtienao’s opinions stated above are not investment advice. Before making any high-risk investments in cryptocurrencies or digital assets, investors should conduct extensive research. Please note that any transfers and transactions are entirely at your own risk and we will have no liability whatsoever for any losses you may incur. We are not financial advisors. Please note that this is a marketing article only. Hope readers will continue to support Blogtienao. Best regards!
