EigenLayer Boosts Cross-Chain Transactions with LayerZero

EigenLayer Strengthens Cross-Chain Tech with LayerZero Collaboration

EigenLayer, a number one Ethereum re-staking protocol, and LayerZero Labs, a cross-chain messaging protocol, have launched an progressive system to boost the safety of cross-chain communication. In an Oct. 2 weblog submit, LayerZero Labs introduced its collaboration with Eigen Labs to create a framework for CryptoEconomic Decentralized Verifier Networks (DVNs). This new system goals to handle the vulnerabilities in cross-chain transactions by combining technical verification with monetary incentives.

EigenLayer and CryptoEconomic Decentralized Verifier Networks (DVNs)

The DVN system solves a number of safety points associated to cross-chain messaging, reminiscent of a scarcity of financial incentives to keep up belief, restricted participation in securing the community, and rigid safety fashions. By introducing a cryptoeconomic strategy, DVNs make sure that verifiers stake their belongings, like Ether (ETH) or native tokens reminiscent of EigenLayer’s EIGEN or LayerZero’s ZRO, as collateral. This creates a system the place verifiers are financially incentivized to behave truthfully, as their belongings could possibly be “slashed” or taken away in the event that they act dishonestly or make errors.

How DVNs Work to Safe Cross-Chain Transactions

The DVN system operates by way of a four-step course of: stake, confirm, veto, and slash. Verifiers lock up their belongings, messages are despatched throughout blockchains, and verification happens. If any discrepancies are recognized, tokenholders can vote to veto the staked belongings. If malicious habits is confirmed, the belongings are slashed.

This framework is open supply, permitting groups to customise their very own DVNs with particular safety necessities. With verifiers in a position to take part from any community by staking belongings, the system offers flexibility and encourages widespread participation. Presently, over 35 entities are collaborating within the verification market, together with well-known gamers like Polyhedra and Google Cloud.

EigenLayer’s re-staking primitive provides an extra safety layer to omnichannel message verification. With over $10.8 billion in complete worth locked, EigenLayer continues to make strides, regardless of a lower in its worth over the previous few months.

Conclusion

With the collaboration between EigenLayer and LayerZero Labs, cross-chain transactions are actually safer, backed by each technical and monetary safeguards.

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