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It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero

bitcoinexchangeguide.com 17 September 2021 16:29, UTC
Reading time: ~2 m

While layer 1 solutions like Solana (SOL), Avalanche (AVAX), Binance Smart Chain (BSC), Polkadot (DOT), and Cardano (ADA) are trying to compete with Ethereum, layer 2 solutions like Arbitrum and Optimism are here to solve the issue of high fees and congestion on Ethereum network and have been gaining traction. But while layer 1s and layer 2s are busy outdoing each other, layer 0 has entered the picture. Could it be the new fad? That’s to be seen, but this week, Bryan Pellegrino, co-founder, and CEO of LayerZero Labs, introduced LayerZero, an Omnichain Interoperability Protocol. According to Pellegrino, LayerZero's mission is simple — connect all dapps on all chains, have borderless connectivity (EVM, Non-EVM, L1, and L2), and make integration with LayerZero extremely simple for developers. “Right now, bridges can be a mess,” noted Pellegrino as he pointed out different layer 1s have all independent pools of liquidity and that we don’t natively have the likes of AVAX <> Solana and Avax <> BSC. Unlike this, LayerZero will allow for a single pool of unified liquidity bridged between all connected chains along with enabling native cross-chain lending, which means lend on one chain and borrow on another one seamlessly, and unified governance, that is, the ability to seamlessly swap AMM (A) -> AMM (B) regardless of chain, layer, or asset. All of this will be enabled natively from day 1 on top of LayerZero, whose contracts are currently under audit and will “go live shortly after completion,” he said. They are also building the first project entirely on the permissionless LayerZero protocol called Stargate, on which details will be shared soon.

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