LayerZero: Technical Principles and Evaluation of the Cross-Chain Interoperability Protocol

Technical Principles

LayerZero is a trustless cross-chain communication protocol. It is based on lightweight node technology and designs a super lightweight node mechanism, separating intermediate steps through relayers and oracles to achieve better security at a lower cost. LayerZero mainly provides cross-chain messaging services rather than direct asset cross-chain.

Ultra Light Node

Compared to traditional light nodes, super light nodes (ULN) do not store all block headers in order, but are provided with data on demand by decentralized oracles. This reduces costs but also brings certain security risks.

core role

The cross-chain process of LayerZero involves two key roles:

1. Oracle( oracle): Provides the block hash and receipt root required for target chain verification.

2. Relayer(: Provides transaction proof and cross-chain message content.

This division of labor enhances security because it requires two roles to act maliciously simultaneously in order to pass the validation.

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) cross-chain lifecycle

1. The user application initiates a cross-chain request.
2. LayerZero communicator packages data
3. The validator forwards to the network layer and the relay.
4. The oracle obtains the source chain block header and sends it to the target chain.
5. The repeater provides transaction proof
6. Target chain validator confirms transaction validity
7. The target chain executes cross-chain operations

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Advantages and Disadvantages Evaluation

) advantages

1. Extremely low verification cost
2. Powerful general scalability, supports EVM and non-EVM chains
3. Developer-friendly, easy integration
4. Solve the problem of multi-chain asset fragmentation

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) potential risks

Over-reliance on oracles may pose security risks. However, LayerZero mitigates these risks in the following ways:

1. The application can customize relays and oracles.
2. Multi-party game forms decentralized supervision
3. The application layer can further enhance security.
4. Capital diversification increases the cost of attacks.

LayerZero has undergone multiple rounds of security audits and offers a high bounty program for vulnerabilities. As a foundational communication protocol, LayerZero is expected to become an important infrastructure for the multi-chain ecosystem.

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