LayerZero

LayerZero is a protocol designed for omnichain interoperability, enabling lightweight message transmission between different chains. With LayerZero, message delivery is both authentic and assured, thanks to configurable trustlessness. It serves as a "blockchain of blockchains," allowing seamless and trustless communication among various blockchain networks.

A standout feature of LayerZero is its Ultra Light Nodes (ULNs). These smart contracts are deployed on each blockchain, functioning as endpoints that facilitate cross-chain communication. By validating transactions and messages from other chains through block headers and transaction proofs, ULNs ensure both security and efficiency.

LayerZero is compatible with any blockchain capable of running smart contracts, including Ethereum, BNB Chain, Avalanche, Polygon, Arbitrum, Optimism, and Fantom, among others. It also extends support to non-EVM chains like Aptos. These so-called omnichain applications are poised to be a crucial component of a future where multiple blockchains interact simultaneously.

The goal of LayerZero is to provide the ideal interoperability solution for blockchains, promoting smooth and trustless cross-chain transactions.

LayerZero Labs, the company responsible for the LayerZero protocol, was co-founded in 2021 by Bryan Pellegrino, Ryan Zarick, and Caleb Banister.

The company has attracted investment from some of the most notable figures in the cryptocurrency industry, including a16z, Sequoia, Paypal Ventures, Polygon, Coinbase Ventures, Binance Labs, DeFiance Capital, Spartan Group, Sino Global Capital, and Multicoin Capital, to name a few. They secured $135 million in a Series B funding round in March 2022 and raised an additional $120 million in another Series B in April 2023.

LayerZero sets itself apart from other interoperability solutions through several distinctive features:

Ultra Light Nodes (ULNs): LayerZero incorporates on-chain ULNs, operating as smart contracts on each blockchain to enable cross-chain communication. These nodes confirm the validity of transactions and messages from other chains using block headers and transaction proofs, ensuring both security and efficiency.

Generic Messaging: The protocol supports a wide range of cross-chain communications, extending beyond mere asset transfers. LayerZero accommodates any type of payload, including function calls, data exchange, governance votes, and NFT transfers. This flexibility allows developers to build omnichain applications that tap into the advantages and capabilities of multiple blockchains simultaneously.

State Sharing: LayerZero enables applications to share state across different chains, allowing them to sync data and logic without the need for centralized servers or databases. This feature lets applications function as unified entities across multiple chains, offering a coherent user experience while minimizing complexity.

Instant Finality: Cross-chain transactions through LayerZero are confirmed instantly once included in a block on the source chain, eliminating the need for waiting times or further confirmations on the destination chain, thus enhancing speed and user experience.