What is LayerZero?
LayerZero is an interoperability protocol that connects over 50 blockchains, enabling developers to create seamless omnichain applications, tokens, and experiences.
More about LayerZero
LayerZero is an advanced, immutable, censorship-resistant, and permissionless smart contract protocol designed to enable seamless cross-chain communication. It allows users on any blockchain to send, verify, and execute messages on supported destination networks, revolutionizing the way decentralized applications (dApps) interact across different blockchains.
Challenges Before LayerZero
Before LayerZero, decentralized applications faced significant hurdles in achieving interoperability across blockchains. The prevalent solutions were monolithic bridges, each with its own set of limitations and vulnerabilities:
- Centralized Providers: Relied on a single centralized entity to manually deliver messages to the destination chain. This centralization posed significant security risks.
- Collection of Signers: Used a group of signers to verify messages before delivery. While more decentralized than a single provider, this method still presented points of failure and security concerns.
- Middlechain Bridges: Routed messages through a hub chain (middlechain), inheriting its security. This dependency meant that any compromise in the middlechain's security would affect all connected applications.
All these methods suffered from a fundamental flaw: the reliance on a single verifier network to determine message delivery, making them susceptible to failures, centralization risks, backdoors, lack of diversity, and upgradeable contract vulnerabilities.
LayerZero's Solutions
- Immutable Contracts: LayerZero addresses these challenges with its innovative use of immutable contracts. To facilitate message transfer between blockchains, a non-upgradeable LayerZero Endpoint contract must be deployed on each target chain. This contract serves as the protocol’s entry and exit point, offering several key functions:
- Send Messages: Applications and users can send messages from the source blockchain using
Endpoint.send. - Configure Security and Execution Settings: Security configurations and execution parameters can be adjusted through
Endpoint.setConfig. - Quote Gas Costs: Cross-chain transaction gas costs can be estimated using
Endpoint.quote. - Receive Messages: Messages are received on the destination chain via
Endpoint.lzReceive. - Debug and Retry Failed Messages: Failed messages can be debugged and retried through
Endpoint.lzReceive.
The Endpoint interface supports the Omnichain Application (OApp) and Omnichain Fungible Token (OFT) standards, and can be extended for any smart contract needing to send messages across chains. This provides a predictable, stable interface for transferring arbitrary data, executing external function calls, and sending tokens.
- Modular Security: LayerZero enhances security through its modular approach, allowing applications to configure a variety of decentralized verifier networks (DVNs) for cross-chain message verification. Each application can customize its Security Stack to suit specific security needs, instead of relying on a single verifier network. This configuration can be adjusted or expanded by the application owner, ensuring the application stays up-to-date with the latest verification techniques.
- Customizable Verifiers: Developers can add new verifier networks at any time, future-proofing applications against evolving security threats.
This flexibility ensures robust security for cross-chain applications, tailored to individual requirements.
- Permissionless Execution: LayerZero promotes permissionless execution, meaning anyone can interact with the LayerZero Endpoint on the destination chain. Once a message is verified by an application's chosen DVNs, it can be executed using the
Endpoint.lzReceivemethod. - Automated Execution: Typically, execution is automated by an application's configured Executor, a production asset within the ecosystem that automatically delivers verified messages. This Executor abstracts gas on the destination chain, allowing users to pay using the source chain's gas token and adding specific execution options for cross-chain messages.
- Custom Executors: Anyone can develop and run their own Executor. If a configured Executor becomes unavailable, messages can still be permissionlessly executed at any time.
- Supported Chains: LayerZero has been deployed across multiple blockchain networks, facilitating extensive interoperability. The full list of supported chains can be viewed here.
In summary, LayerZero represents a significant advancement in blockchain interoperability. By providing immutable contracts, modular security, and permissionless execution, it enables secure, efficient, and decentralized cross-chain communication. This innovative protocol allows developers to build robust and interoperable applications, driving the growth and integration of the blockchain ecosystem.
Key services & use cases powered by LayerZero as a Web3 infrastructure provider
- OApp Overview: Build your first Omnichain Application (OApp) using LayerZero Contract Standards. Develop decentralized applications that operate seamlessly across multiple blockchains, leveraging LayerZero’s interoperability.
- Build an OFT: Create Omnichain Fungible Tokens (OFT) using familiar fungible token standards. Issue and manage tokens that are transferable across different blockchains, ensuring efficient liquidity and broad utility.
- Estimating Gas Fees: Generate quotes for omnichain message gas costs before sending. Provide users and developers with accurate gas cost estimates, facilitating budget planning and cost management for cross-chain transactions.
- Generating Options: Build message options to control gas settings, nonce ordering, and more. Customize the execution of cross-chain messages to optimize for speed, cost, and order of operations.
- Chain Endpoints: Access the addresses and endpoint IDs for every supported chain. Easily identify and connect to supported blockchains, ensuring seamless integration and communication.
- Configure OApp: Set up your Security Stack, Executors, and other application-specific settings. Tailor security and execution parameters for your omnichain applications to enhance reliability and performance.
- Track Messages: Monitor your omnichain messages using LayerZero Scan. Track the status and progress of cross-chain messages in real-time, ensuring transparency and troubleshooting.
These services enable developers to create robust and flexible decentralized applications that can operate across multiple blockchain networks, providing seamless interoperability, efficient resource utilization, and enhanced security.
