As the blockchain is becoming a mainstream technology and as more interest in cryptocurrencies is emerging, it's essential to look at some of the trends that are going on right now. Although it may be tempting to focus on only one trend, remember that blockchains have many different layers, so viewing them as a single, unifying trend is not an accurate representation of the technology.
LayerZero is a company that aims to create the next generation of decentralized applications (dApps) by combining different blockchains. They seek to go beyond the 'brain-numbing' complexity that is rife in many current blockchain projects and unify the fragmented blockchain market. They are hoping to achieve this by focusing on the application layer of a blockchain, focusing on the specific protocols that allow for the interoperability of applications.
With all its advantages and constraints, the current layer structure was built when blockchains were not as advanced as they are today. The layerZero network uses an innovative multi-chain architecture that can be used across different blockchains. The main goal of LayerZero is to serve other blockchain projects by providing a way to integrate decentralized applications.
One thing that has driven this idea is Bryan Pellegrino's aspiration to solve a problem he has felt for a long time. Bryan wants to help with the unification of the blockchain industry, which has led to LayerZero forming this ambitious project. It was evident that several different blockchains have been created, but there is still much fragmentation when it comes to interoperability across other blockchains.
One of the biggest challenges LayerZero is facing right now is the mainstream adoption of cryptocurrency. Even though there is no prominent competition in the market, it has become difficult to get mainstream usage of platforms such as this one. There is a steep learning curve that comes with using cryptocurrency and minimal knowledge of how they work and what they are even used for. In addition, the wide variety of blockchain platforms, exchanges, and tokens can be confusing and difficult to grasp.
"DeFi applications have spread out and deployed across multiple chains due to high fees and evolving investors' preferences. This has led to severe fragmentation across the market. For example, you can currently trade on Sushi using Ethereum, Moonbeam, Fantom, xDAI, and Binance Smart Chain, and more chains are coming. While all of these applications are Sushi, none alone is Sushi. LayerZero solves this problem by uniting liquidity across chains and making it possible to transact in, out easily, and across disparate networks, " said Bryan Pellegrino, the CEO of LayerZero Labs.
LayerZero is a promising project aiming to create something entirely new and unique in the blockchain ecosystem. The start-up is edging towards the vision of making blockchain more accessible and acceptable while also moving forward with the idea of making blockchain technology more relevant to a broader audience of users. The main goals of LayerZero Labs are promising and exciting, which will make it very interesting to see how this project matures over time and evolves.
The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook editorial.