Bridge Protocol LayerZero has revealed that it has achieved a big landmark, crossing 50 million cross-chain messages.
The landmark exhibits the surging demand amongst customers within the crypto area to conduct cross-chain token swaps and switch liquidity between totally different chains.
What Is LayerZero?
Interoperability points have plagued the blockchain ecosystem. For seamless interoperability between blockchains, tasks should implement standardized knowledge codecs, safe communication channels, widespread consensus mechanisms, and safe, scalable interoperability protocols. That is the place LayerZero comes into the image. LayerZero is a cross-chain communication protocol that facilitates trustless, direct communication between totally different blockchains, supporting distinguished gamers resembling Solana, Aptos, SUI, EVM Chains, and others.
The communication protocol may doubtlessly revolutionize how blockchains work together with each other, eliminating the necessity for intermediaries resembling bridges and facilitating direct communication as a substitute.
LayerZero’s Distinctive Method
LayerZero makes use of a singular strategy referred to as Extremely Mild Nodes (ULNs) to facilitate interoperability. Extremely Mild Nodes are primarily light-weight blockchain purchasers that may validate transactions on different chains with out requiring them to obtain the whole blockchain state. This enables LayerZero to realize a considerably excessive throughput, together with low latency throughout inter-chain communication with blockchains which have totally different architectures and consensus mechanisms.
The Extremely Mild Nodes are deployed on chains that want to talk with each other and preserve a partial view of the chain they’re deployed on, which is then used to validate transactions. Relayers, a kind of off-chain service, are answerable for relaying messages between ULNs on totally different chains. As an incentive, relayers are adequately compensated for every message they transmit between chains. Oracles, one other third-party service, are used to go on the block header to the goal chain’s endpoint, following which the transaction proof is submitted. As soon as submitted, the vacation spot chain validates the proof utilizing its consensus mechanism.
The 50 Million Milestone
LayerZero crossed the 50 million messages milestone for messages between blockchains on Tuesday. The landmark achievement highlights the excessive demand amongst customers within the crypto area to conduct cross-chain token swaps and liquidity transfers between chains, regardless of a number of vulnerabilities and dangers. It’s because knowledge from Chainalysis has proven that bridge exploits accounted for over $2 billion in stolen belongings in 2022 alone.
The information additionally comes simply three months after LayerZero Labs, the entity behind LayerZero raised $120 million in capital from over 33 backers. The listing of backers included distinguished names resembling public sale home Christies’ Sequoia Capital, Samsung Subsequent, and Andreessen Horowitz. The Collection B funding spherical was completed at a valuation of $3 billion, practically tripling its valuation from its $135 million spherical, held in March 2022. Different backers within the newest funding spherical included OpenSea Ventures, Circle Ventures, and BOND.
The funding spherical additionally marked a uncommon funding deal in a protracted crypto bear market that has seen funding dry to a crisp. Co-founder and CEO of LayerZero Labs said,
“LayerZero is to blockchains what the web was to computing clusters. LayerZero permits chains not solely to construct bridges (to switch belongings/worth between them) however ship and execute arbitrary knowledge similar to a packet on the web. What this implies is that you could now construct functions which can be orders of magnitude extra advanced than current functions and achieve this with a totally seamless expertise between chains.”
Disclaimer: This text is supplied for informational functions solely. It’s not supplied or supposed for use as authorized, tax, funding, monetary, or different recommendation.
