Transferring data between blockchains and making the process user-friendly remain key topics in the cryptocurrency market. As increasingly effective solutions are developed in this area, LayerZero stands out as one of the most popular approaches. This article explores what LayerZero (ZRO) is, how it works, how to buy it, and how to store it.
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What is LayerZero?
LayerZero is an infrastructure designed to provide an effective solution by enabling secure and fast asset transfers across blockchains. Although many initiatives have been established with similar goals, LayerZero stands out from other projects with its unique operational framework and solution approach.
LayerZero aims to integrate as many blockchains as possible, enabling applications on different blockchains to transfer data between each other. By making liquidity and user bases across various chains interoperable, it seeks to create a much larger and more connected ecosystem.
How Does LayerZero Work?
LayerZero currently connects dozens of different blockchains. Its unique infrastructure is based on how it utilizes Oracle, Relayer, and Endpoint components.
To better understand how LayerZero works, let’s walk through a simple example:
Suppose a user wants to transfer cryptocurrency from blockchain A to blockchain B.
- The user sends a transaction request to LayerZero to transfer the asset on blockchain A.
- The Relayer on LayerZero generates the transaction details and a proof verifying the asset to be transferred.
- The Oracle transmits the proof and transaction data provided by the Relayer to the target blockchain.
- The Endpoint on blockchain B checks whether the data from the Relayer and Oracle match. If they match, it forwards the transaction request to the nodes on blockchain B, completing the transfer. If they do not match, the transaction request is rejected and the transfer does not take place.
In this process, the component referred to as the Endpoint essentially represents a communication point. Each blockchain integrated with LayerZero is required to establish its own Endpoint. This setup allows the Oracle and Relayer data to be verified, enabling two different networks to communicate with each other through LayerZero.
The Oracle and Relayer components seen in the process above are the main elements ensuring LayerZero’s security. It is crucial that these two components operate independently of each other. This is because the Endpoint only approves and forwards a transaction if the data from both components match. As a result, if manipulated data is sent from either the Relayer or the Oracle, it will not match the other data, making it difficult to tamper with transactions on the network.
Ultra Light Node
One of the key components of LayerZero’s unique operational system is the Ultra Light Node (ULN) infrastructure. In blockchains, there are typically two types of nodes: full nodes and light nodes. Running a full node becomes increasingly costly over time, which leads to centralization issues within blockchains. To prevent this and improve efficiency, LayerZero stores the data that nodes would normally need to maintain off-chain, relieving nodes of this responsibility. Since the biggest challenge for nodes is the size of the data they must store, nodes on LayerZero become significantly lighter.
Key Facts About LayerZero (ZRO)
- LayerZero was founded by Bryan Pellegrino, Ryan Zarick, and Caleb Banister.
- The initial work on the project started in 2021.
- ZRO is LayerZero’s native cryptocurrency.
- The ZRO token is a governance token that allows holders to vote on changes within LayerZero.
- Visit LayerZero’s website here, and find more detailed information here.
How to Store LayerZero (ZRO)?
The ZRO coin operates on the Ethereum network. You can store your ZRO assets in web, browser, desktop, hardware, and mobile wallets that support the Ethereum network.
How to Buy and Sell LayerZero (ZRO)?
You can buy and sell LayerZero (ZRO) with Tether (USDT) using the BtcTurk | Global website or mobile app. If you’re not yet a member, you can easily register on our website or app and buy LayerZero (ZRO) by depositing cryptocurrency.
