Layer Zero Presentation For beginner

[Albatar44]

In English, LayerZero is an infrastructure protocol designed to enhance inter-blockchain communication. It introduces a novel concept called Omnichain DApps (ODApps) and facilitates the creation of ODApps across different blockchains, similar to developing regular DApps for a single network like Ethereum or Polygon. The key feature of LayerZero is that it allows developers to harness the liquidity of various networks without the need for trust intermediaries or consensus protocols.

Currently, when you want to transfer liquidity from one blockchain (Chain A) to another (Chain B), bridges are often used as the primary option. However, bridges are not always optimal, being slow, expensive, and sometimes lacking in asset security, resulting in a suboptimal user experience.

For DEX platforms that aim to operate on multiple blockchains, they need to fragment their liquidity across different networks. This fragmentation can lead to high fees, slippage, reliance on third parties, and other obstacles for end users.

LayerZero aims to simplify the process by allowing DEX platforms to use a single interface and a set of pre-written code for each pair of blockchains, making multi-chain integration more efficient.

LayerZero focuses on low-level messaging interoperability between distributed networks, enabling higher-level crypto applications to be built on top of it, providing their features across various blockchains.

To achieve inter-blockchain communication, LayerZero employs oracles and relays. Oracles fetch block headers from one blockchain and send them to another, while relays retrieve transaction proofs.

Security in this architecture depends on the honesty of these two parties. If both the oracle and relay are honest, the transaction is validated and sent to the target chain. If either is dishonest, the transaction cannot be verified.

To ensure secure communication between blockchains, LayerZero employs a "valid delivery" mechanism, coupling each message with a transaction on the sender's chain. This ensures that a message is delivered to the receiver only if the associated transaction is valid and has been validated on the sender's chain.

LayerZero also utilizes "Endpoints" as user interfaces on each network. These endpoints consist of Communicators, Validators, Networks, and Libraries. Adding new chains to LayerZero is made easy through the modular design.

The combination of LayerZero and the Inter-Blockchain Communication (IBC) protocol from Cosmos enhances communication and token standardization across different networks. This approach provides a more comprehensive solution for inter-chain communication than the IBC alone, which is limited in connecting with Ethereum and EVM-based networks.

LayerZero Labs raised $135 million in funding from prominent institutions, and the project is continually evolving.

In conclusion, LayerZero is part of a new wave of projects focused on composability and interoperability. Its integration with the IBC protocol allows it to serve as a versatile messaging layer for communication between various blockchains, potentially shaping the future of inter-chain communication. The success of LayerZero will depend on the dApps built on it, the choice of oracles and relays, and the integration of new chains into its ecosystem.

[phucthinh11061997]

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[MrExcel2019]

Helpful

[Yanimartiny]

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