Omnichain Protocol LayerZero Launches V2 with New Features and Improvements
LayerZero, the protocol that connects multiple blockchains and enables cross-chain collaboration, has launched its second version (V2) on Mainnet. The new version introduces several new features and improvements that enhance the security, flexibility, and user experience of the LayerZero ecosystem.
What is LayerZero?
LayerZero is a protocol that allows different blockchains to communicate and exchange messages, data, tokens, and function calls. LayerZero aims to create a network of interoperable chains that can leverage each other’s strengths and capabilities, without compromising on security, decentralization, or scalability.
LayerZero has its own native token, ZRO, which is used for governance, staking, and paying fees. ZRO holders can participate in the LayerZero DAO, which oversees the development and direction of the protocol.
LayerZero also provides a framework for developers to build omnichain applications (OApps) and omnichain fungible tokens (OFTs) that can run on any chain that LayerZero supports. OApps and OFTs are smart contracts that follow a standard interface and logic, making them compatible and portable across different chains.
LayerZero has attracted a lot of attention and support from the blockchain community. Over 40,000 OApp contracts have been deployed on LayerZero, hundreds of teams use LayerZero’s OFT Standard to power tokens, and dozens of teams have built full-scale applications as groupings of OApps. Some of the notable projects that use LayerZero include:
- Omniswap: A decentralized exchange that allows users to swap any token across any chain.
- Omnibridge: A cross-chain bridge that enables users to transfer any token across any chain.
- Omnifarm: A yield aggregator that optimizes returns for users by automatically switching between the best farming opportunities across different chains.
- Omniverse: A metaverse that connects virtual worlds and assets across different chains.
LayerZero has also raised a solid $263.3M in funding from prominent investors and partners, such as Polychain Capital, Pantera Capital, Coinbase Ventures, Alameda Research, Multicoin Capital, and more.
What’s New in V2?
LayerZero V2 is a major upgrade that introduces several new features and enhancements to the protocol. Some of the highlights of V2 are:
- Universal Messaging: V2 allows any type of message to be sent and composed between chains, including arbitrary data, external function calls, and/or tokens. This enables more complex and diverse cross-chain interactions and use cases, such as cross-chain NFT minting, cross-chain oracle queries, cross-chain governance voting, and more.
- Modular Security: V2 allows developers to choose from their preferred combination of 20+ Decentralized Verifier Networks (DVNs) when selecting a Security Stack to verify cross-chain messages. DVNs are groups of nodes that monitor and validate the state of different chains, using various consensus mechanisms and security models. By allowing developers to customize their Security Stack, V2 gives them more flexibility and control over the trade-offs between speed, cost, and security of their cross-chain messages.
- Permissionless Execution: V2 allows anyone to run an Executor, which is a node that executes cross-chain messages on the destination chain. By opening up the execution layer to anyone, V2 increases the decentralization and censorship-resistance of the protocol, as well as creates new incentives and opportunities for participants to earn fees and rewards for providing execution services.
- Unified Semantics: V2 enables developers to build applications and tokens that work the same across every blockchain that V2 has an endpoint on, using OApp and OFT contracts. V2 supports more than 20 chains, including Ethereum, Binance Smart Chain, Polygon, Solana, Avalanche, Fantom, Arbitrum, Optimism, and more. By providing unified semantics, V2 simplifies the development process and enhances the user experience of omnichain applications and tokens.
- V1 Compatibility: V2 offers migration options for V1 applications, which can utilize the new security and execution model via ULN 301, a protocol upgrade that connects V1 and V2. V1 applications can also continue to operate on V1, as both versions will run in parallel for the foreseeable future.
How to Get Started with V2?
LayerZero V2 is live on Mainnet and ready for anyone to use and explore. Users can access the LayerZero Portal, which is a web interface that allows them to interact with LayerZero and its ecosystem projects. Users can also install the LayerZero Wallet, which is a browser extension that enables them to manage their omnichain assets and sign cross-chain transactions.
Developers can visit the LayerZero Docs, which is a comprehensive resource that guides them through the basics and advanced topics of LayerZero development. Developers can also join the LayerZero Discord, which is a vibrant community of developers and enthusiasts who are eager to help and collaborate.
LayerZero V2 is a breakthrough in omnichain interoperability, bringing permissionless, censorship-resistant, and immutable interoperability to more than 20 chains. LayerZero V2 opens up new possibilities and opportunities for the blockchain industry, as it enables more innovation, collaboration, and value creation across different chains. LayerZero V2 is not only a protocol, but also a vision of a more connected, diverse, and powerful omnichain future.
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