🎛️Infrastructure | LayerZero

LayerZero is a user application (UA) configurable on-chain endpoint that operates a ULN. It relies on two key parties to facilitate message transfers between on-chain endpoints.

LayerZero is a user application (UA)-configurable on-chain endpoint that operates a Unified LayerZero Network (ULN). It facilitates cross-chain message transfers by relying on two key parties: the Oracle and the Relayer.

When a UA sends a message from Chain A to Chain B, the message is routed through the LayerZero endpoint on Chain A. The endpoint notifies both the Oracle and Relayer of the message and its destination. The Oracle sends the block header to the LayerZero endpoint on Chain B, while the Relayer submits the transaction proof. Once the proof is validated on Chain B, the message is successfully delivered to the target address.

LayerZero is built on the principle of trustless blockchain transactions, emphasizing robust transaction validation. The cooperation between the Oracle and Relayer adds an additional layer of security, a feature that Delta (formerly Syncer) leverages to enhance its cross-chain transfers.

The LayerZero Difference and Adoption

Relayers and Oracles:

In the current version of Delta, applications must select a specific Relayer and Oracle that they trust. However, LayerZero’s design allows for third-party Relayers and Oracles, offering flexibility for applications to choose from multiple providers and switch between them if needed. This reduces the risk of malicious behavior by Relayers and fosters greater decentralization.

Chain Paths:

A Chain Path connects an asset between two distinct chains by establishing a Liquidity Pool for the asset on each chain and linking these pools. Each Liquidity Pool can only reference one other Liquidity Pool, ensuring a direct, streamlined connection between the two chains for that particular asset. This setup facilitates seamless cross-chain transfers for high-value digital assets, making the system both efficient and secure.