LayerZero: The Rise of the Cross-Chain Interoperability Protocol

Preface

LayerZero, as a full-chain interoperability protocol, has seen its valuation soar to $3 billion in just one year, securing $120 million in funding once again. This article will delve into the mainstream models of cross-chain technology, the technical principles of LayerZero, and an analysis of its advantages and disadvantages.

LayerZero Technology Principles

Overview

LayerZero is a trustless cross-chain communication protocol that uses a super light node mechanism, sharing the trust process through relayers and oracles to achieve higher security at a lower cost. It primarily focuses on message cross-chain rather than direct asset cross-chain.

ultra-light node mechanism

Compared to traditional light nodes, the ultra-light node (ULN) does not retain all block headers in order, but instead streams them on demand through decentralized oracles. This approach significantly reduces costs, but also introduces certain security trade-offs.

The Core Role of LayerZero in Cross-Chain

Oracle and Relayer

The Oracle is responsible for providing verification timestamps and answers, while the Relayer is responsible for supplying the necessary proofs and specific cross-chain information. The two work together in coordination to achieve cross-chain communication.

Cross-chain lifecycle

The cross-chain process involves multiple steps, from the user initiating a transaction to the target chain executing it. Throughout the process, oracles and relayers play key roles in ensuring accurate transmission and verification of information.

LayerZero protocol evaluation

security considerations

LayerZero enhances decentralization and security by allowing applications to customize relayers and choose different oracles, creating a many-to-many selection pattern. The protocol itself does not store funds or data, reducing the risk of attacks.

Advantages compared to other cross-chain solutions

1. Extremely low cross-chain verification costs
2. Powerful general extensibility, supporting more chains
3. Low threshold for developer access
4. Solve the problem of multi-chain asset fragmentation.

Summary

LayerZero, as a cross-chain communication protocol, plays a key role in the multi-chain ecosystem. Its innovative technical solutions and broad application prospects make it an important infrastructure for multi-chain interoperability. With the growing demand for cross-chain solutions, LayerZero is expected to play an even greater role in the future blockchain ecosystem.