🧞ZRO and omnichain apps
MUST-SEE EVENTS THIS WEEK
GM and happy Monday frens🖖
LayerZero recently announced the start of the airdrop of its token ZRO, and now it's skyrocketing in price & also trading on Binance.
With this in mind, we decided to tell you more about LayerZero's technology and share insights from their keynote on omnichain applications.
Today's newsletter is about:
🎉 EVENTS THIS WEEK
💻 Omnichain apps
📰 This week's news
⛓️L2con is tomorrow!
Why you must (!!) be there:
19 keynotes
6 panel discussions
24 industry experts to network with during "Ask builders"
Universal Blockchain Summit inside!
And here are some featured keynotes:
Solving Modular Fragmentation Through Clearing - Founder @ Everclear / Connext
Building on Layer 2: Strategies, Challenges, and Future Prospects for New Projects - Head of BD @ BlastUp
Introducing a Coordination Layer for Decentralized Rollups - Co-founder @ Radius
Building Universal Apps for all of crypto - Head of Community @ Zetachain
Transforming Trading with Transparent and Verifiable Computation with zkLighter - Founder & CEO @ Lighter
Everything you wanted to know about fraud proofs but were afraid to ask - Blockchain Engineer @ Cartesi
Last free 10 tickets left! Register now!
📅July 9, Brussels, EthCC
🗡️Restaking & Infra Day is today!
The event starts at 12 PM today!
Be sure to grab last tickets, as we're almost overbooked. Just look at the lineup above, it's goated!
🤿Deep-dive: Omnichain Applications
LayerZero is an omnichain interoperability protocol. It enables the realization of cross-chain applications with a low level communication primitive.
Insights on why is that important and how they do it from Matthew Krak, Developer Ecosystem Lead @ LayerZero from Restaking & Infra Day last April!
Importance of cross-chain communication
Cross-chain transfers are crucial for the seamless movement of tokens and information between isolated blockchain environments. By connecting these isolated systems, we can enable a flow of information that facilitates coordination, movement of goods and services, and financial transactions. Despite the evident utility of cross-chain communication, the adoption rate remains relatively low. According to the Electric Capital Developer Report from last year, only 34% of developers working on open-source crypto projects deployed on more than one chain. This highlights a significant gap and an opportunity for improvement in the industry.
Challenges in cross-chain transfers
One of the main challenges in cross-chain transfers lies in the security of traditional monolithic bridges. These bridges often rely on centralized providers or a collection of signers to validate transactions between chains. However, this centralized approach poses significant security risks. Historically, the biggest crypto hacks have been due to failures in monolithic bridge security. For instance, four out of the five largest hacks in the past decade were linked to these vulnerabilities. When the security of a bridge fails, it not only affects the application owner but also every application that relies on that bridge.
Principles of effective cross-chain communication
To build a robust cross-chain communication system, three key principles must be adhered to:
Permissionlessness: Any user or application should be able to access the protocol without restrictions.
Censorship Resistance: The protocol must ensure that all messages are delivered without being blocked or altered.
Immutability: The smart contract code should be unchangeable once deployed to prevent malicious updates or errors from compromising the system.
These principles ensure that the cross-chain communication framework is secure, reliable, and accessible to all users.
Challenges in cross-chain transfers
One of the main challenges in cross-chain transfers lies in the security of traditional monolithic bridges. These bridges often rely on centralized providers or a collection of signers to validate transactions between chains. However, this centralized approach poses significant security risks. Historically, the biggest crypto hacks have been due to failures in monolithic bridge security. For instance, four out of the five largest hacks in the past decade were linked to these vulnerabilities. When the security of a bridge fails, it not only affects the application owner but also every application that relies on that bridge.
⚡Blitz News
Consensys acquires Wallet Guard to help protect MetaMask users against hacks and scams
Web3 users reached an all-time high of 10M in Q2: DappRadar
DWF Labs launches $20M fund for Web3 projects in China
Aptos Foundation And Alibaba Cloud Launch Alcove
All right, that’s it for today! 👋 But wait…
You didn’t say “gm” on Twitter! Let’s catch up there for daily insights.
Sending growth your way,
Epic Web3