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LayerZero is an omni-chain interoperability protocol that facilitates secure and efficient cross-chain communication between blockchain networks. It enables the transfer of assets, messages, and even smart contracts across chains without the need for costly light nodes or risky bridges. This is achieved through the use of Ultra Light Nodes (ULN), decentralized oracles, and independent relayers. The protocol aims to serve as the foundational “internet layer” for blockchains, connecting various chains—both Layer 1 and Layer 2—into a unified, secure, and scalable network [1].
The core mechanism of LayerZero involves blockchain endpoints that function as nodes in a fully connected network. Each supported blockchain must deploy its own endpoint to send, verify, and receive messages. ULNs, which are typically implemented via smart contracts, validate transactions without storing full transaction histories, significantly reducing costs while maintaining security. Decentralized oracles, such as
and Band Protocol, read block headers and transmit them between chains for verification. Relayers, on the other hand, submit transaction proofs for on-chain validation and message execution. The independence of oracles and relayers ensures that only transactions confirmed by both are treated as valid [1].ZRO is the native governance token of the LayerZero protocol, playing a central role in aligning incentives, enabling on-chain voting, and supporting the protocol’s sustainability. ZRO holders can directly influence protocol governance, including the activation or deactivation of the protocol fee switch through immutable on-chain referendums. The token has a fixed supply of 1 billion, with allocations set for community, strategic partners, core contributors, and token buybacks. A fee burn mechanism further reduces supply over time if the fee switch is activated, enhancing scarcity and value retention [1].
What sets LayerZero apart is its emphasis on security and composability. Unlike traditional cross-chain bridges that have been frequent targets of attacks, LayerZero employs a dual-verification process involving oracles and relayers to minimize the risk of malicious activity. The protocol also supports true composability by eliminating liquidity fragmentation, allowing seamless asset transfers without isolated liquidity pools. Furthermore, LayerZero’s omni-chain architecture is designed to support a multi-chain future, as highlighted by
co-founder Vitalik Buterin. Through its OFT standards, tokens are burned on the source chain and minted on the destination chain, removing the need for vulnerable bridge contracts [1].As the blockchain ecosystem continues to evolve, protocols like LayerZero are becoming increasingly vital in enabling a connected, interoperable future. By offering a secure, cost-effective, and developer-friendly alternative to existing solutions, LayerZero is well-positioned to support the next phase of decentralized application development and cross-chain innovation [1].
Source:
[1] What is LayerZero & ZRO? How It Works (https://coinmarketcap.com/community/articles/689b00291f718a53073d33ec/)

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