Photos and text | Xingchen 2024.6.20
Web3 in My Eyes Issue 4
In the first two issues, we talked about Notcoin and Hamster Kombat in the TON ecosystem, both of which were very popular.
I went to the Telegram Apps Center this morning and saw that the top five MiniAPPs on TON are all blockchain games. I am more interested in Catizen and GAMEE. I will talk about these two later.
This time I want to stretch my neck to take a look at LayerZero . It’s quite lively there. Today, it is open for inquiry and application of ZRO airdrop .
Moreover, tonight, various CEXs will be launched, and industry media are rushing to report on this Chinese project. Let’s take a look at its market performance .
LayerZero is a top project with big capital + high valuation . With this top configuration, the airdrop expectations are maxed out, and the money-making studios are pouring in.
There was a "witch purge" campaign that lasted for more than a month before the airdrop. Not only did the project team vigorously investigate witches themselves, but they also mobilized the public to report witches, but the final result did not satisfy the market.
Accused of being the most stingy in history , big Mao turned into small Mao, suspected of insider trading... The Mao Studio was counter-lost. After working hard for half a year, it got nothing in the end, which dealt a heavy blow to the Mao industry.
I don't think there's anything wrong with this. What's the fun in playing against each other in the industry ? The most important thing is to get more people to play together, rather than getting more scientists and robots. Making the pie bigger and returning the profits to retail investors is the real thing.
The recent ZKsync airdrop controversy has not yet ended. As a project that has been waited for so long and has such high expectations, its airdrop story is quite ridiculous. The world is really a huge makeshift team ...
Although ZKsync has not launched a large-scale witch hunt, the number of qualified addresses is far less than the predicted value, the decision-making power is not transparent, Nansen has distanced himself from the issue, suspicious addresses appear frequently, and the official has a series of mysterious operations... Although ZK has been listed on the mainstream Cex, the price has fallen, attracting a large number of empty hands.
These are all episodes and internal contradictions in the industry. The airdrop techniques have been evolving and I won’t go into details today. In short, they are evolving and gradually changing to adapt to the laws of the market .
Today I want to take a look at LayerZero. This star project has a long development time and a lot of information, which is relatively easy to organize. If you have known about the project before, you can skip this article.
I'm not very familiar with it, so I just record it as a work note .
(ChatGPT assisted)
LayerZero
LayerZero is a technology that enables different blockchains to communicate and exchange information with each other .
Imagine blockchains as isolated islands, each with its own rules and currency. Usually, it is difficult for these islands to communicate directly or exchange resources .
LayerZero is like a bridge connecting these islands, helping information and assets to be transferred smoothly between different blockchains .
Specifically, LayerZero is a cross-chain interoperability protocol that uses some special technical means to ensure the security and reliability of data when it is transmitted between different blockchains.
In this way, whether you are on the Bitcoin blockchain, the Ethereum blockchain, or any other blockchain, you can achieve interoperability through LayerZero and perform more complex and useful operations.
In short, LayerZero builds a bridge between the blockchain worlds so that they can collaborate and communicate more effectively.
How LayerZero works
LayerZero uses an innovative architecture called Ultra Light Node (ULN). ULN consists of three main components:
Endpoint: A light node on each blockchain, responsible for processing and verifying cross-chain messages. Relayer: Responsible for transmitting cross-chain messages and related data. Oracle: Provides on-chain status data required for cross-chain communication.
This architecture ensures the secure transmission and efficient processing of cross-chain messages. The specific process is as follows:
1) The user initiates a cross-chain transaction on the source chain. 2) The endpoint collects the transaction data and sends it to the relay node and oracle. 3) The relay node and oracle verify the transaction data and transmit it to the endpoint of the target chain. 4) The endpoint of the target chain receives and processes the transaction, completing the cross-chain operation.
Potential drawbacks of LayerZero
1) Security Challenges
Although the ULN architecture adopted by LayerZero is efficient, it also introduces some security issues.
For example:
Trust issues of relay nodes and oracles: LayerZero’s relay nodes and oracles play an important role in cross-chain messaging. If these nodes are attacked or controlled by malicious actors, cross-chain transactions may be tampered with or intercepted.
Inherent risks of cross-chain bridges: Cross-chain bridges are often targets of hacker attacks because they involve large amounts of asset transfers. LayerZero must continually improve its security mechanisms to guard against potential attacks.
2) Complexity and technical difficulty
Achieving cross-chain interoperability is a complex technical task in itself. LayerZero needs to deal with differences between different blockchains, including consensus mechanisms, data structures, and security models. This complexity may increase the difficulty of development and maintenance, and face technical challenges when dealing with new blockchain integrations.
3) Dependence on external services
LayerZero's architecture relies on relay nodes and oracles, external services that need to operate efficiently and securely. Failures or performance issues with any of these external services could affect the overall performance and reliability of LayerZero.
4) Concerns about the degree of decentralization
Although LayerZero is decentralized by design, in practice, the degree of decentralization of relay nodes and oracles may be questionable. If these key components are controlled by a small number of entities, it may lead to a decrease in decentralization, which in turn affects the fairness and censorship resistance of the system.
5) Sustainability of the token economic model
The economic model of the ZRO token needs to balance user incentives and the long-term sustainability of the ecosystem.
If the token distribution and incentive mechanism are not designed properly, it may lead to excessive fluctuations in token prices or short-term speculative behavior by users, affecting the stability and long-term development of LayerZero.
Application scenarios of LayerZero
1**) Decentralized Finance (DeFi): **LayerZero can help DeFi applications achieve cross-chain asset transfer and liquidity sharing, enhancing the interoperability and liquidity of the DeFi ecosystem.
2) **Game and NFT game developers: **LayerZero can be used to share game assets and NFTs between different blockchains to achieve a cross-chain gaming experience.
3) Cross-chain communication : LayerZero can be used to achieve secure communication between blockchains and support more complex cross-chain application scenarios, such as cross-chain smart contract calls.
ZRO Token
1) Token Function ZRO is the native token of the LayerZero protocol and is mainly used in the following aspects:
Transaction fees: Users need to pay a certain amount of ZRO as transaction fees when performing cross-chain operations.
Incentive mechanism: used to incentivize the operation and maintenance of relay nodes and oracles.
Governance rights: Users holding ZRO can participate in the governance of the LayerZero protocol and vote on protocol upgrades and important decisions.
2) Token Allocation The total supply of ZRO is 1 billion. The specific allocation plan usually includes:
38.3% is allocated to the LayerZero community, including users, developers, and community members.
32.2% is allocated to strategic partners, with an unlocking period of 3 years (1 year lockup followed by 2 years of monthly unlocking), including investors and advisors.
25.5% is allocated to core contributors with a vesting period of 3 years (1 year lockup followed by 2 years of monthly unlocking), including existing and future team members.
4.0% token repurchase, commitment to give back to the community
3) Value Support The value of ZRO mainly comes from the actual use and demand of the LayerZero protocol .
As the LayerZero ecosystem expands and the number of users increases, the demand for ZRO will also increase, thereby increasing its market value .
Summarize
LayerZero has demonstrated great potential in cross-chain interoperability, but it also faces some challenges and shortcomings. The project needs to continuously strengthen security mechanisms, optimize technical architecture, increase decentralization, improve token economic models and continue community building.
LayerZero continues to overcome these challenges to achieve its important position in the blockchain ecosystem.
References:
1) LayerZero official website:
https://layerzero.network/
2) LayerZero airdrop query address:
https://www.layerzero.foundation/eligibility
- LayerZero Wiki:
https://foresightnews.pro/wiki/detail/?id=7421&wiki_type=wiki
WeChat public account: BitGravity
Xingchen WeChat: iammm001
Telegram community: https://t.me/bitgravity
Twitter/X: https://twitter.com/biteyinli
