LayerZero announced the Zero blockchain, capable of processing two million transactions per second, and received investment from Citadel, Ark, and ICE to address the scaling challenges of traditional finance.
LayerZero, a blockchain company backed by Andreessen Horowitz and Sequoia, has just introduced Zero, a blockchain specifically designed to meet the needs of traditional financial institutions. This launch comes with a notable list of partners including market maker Citadel, Cathie Wood of Ark Invest, and Intercontinental Exchange, the parent company of the New York Stock Exchange, as investors and advisors.
According to co-founder Bryan Pellegrino, Zero addresses two major challenges financial institutions face when adopting blockchain: scalability and customer data security. This blockchain uses non-disclosure proof-of-concept technology, allowing for transaction verification in a privacy-preserving manner, while achieving a throughput of two million transactions per second at a fraction of a cent per transaction. This far exceeds Solana's maximum of 100,000 transactions per second.
Shifting the strategy from infrastructure to direct competition.
Founded in Vancouver in 2021, LayerZero initially focused on developing technology to connect different blockchains, enabling the transfer of Token and data between networks. The company raised $120 million in 2023 with a valuation of three billion USD, and Andreessen Horowitz went on to purchase $55 million worth of ZRO Token last April. The Token now has a market Capital exceeding $500 million USD.
With Zero, LayerZero shifted to directly competing with other blockchains instead of Vai as an infrastructure layer. Pellegrino stated that the breakthrough was achieved through restructuring the non-disclosure proof-of-fact technology from its fundamental principles, with the participation of two of the world's leading engineers in the field, whose identities remain confidential.
Cathie Wood emphasized the importance of this solution in bringing internet speed into finance. “One of the main barriers is the speed and volume of transactions per second. This solution is on a whole different level,” she stated. If proven effective, Zero could spur organizations like DTCC, which handles trillions of dollars worth of assets, to move to blockchain.
Blockchain is expected to be showcased next September. However, the way institutions like the NYSE integrate this technology into their core infrastructure remains theoretical, requiring time to move from pilot programs to actual deployment.
