What is LayerZero (ZRO)? How Does It Work?

The transfer of data between blockchains and making it user-friendly continues to be one of the main topics in the cryptocurrency market. As increasingly ideal solutions are being developed in this area, one of the most popular solutions is offered by LayerZero. In this article, you will find answers to questions such as What is LayerZero (ZRO)?, How does LayerZero (ZRO) work?, How to buy ZRO?, and How to store ZRO?

What is LayerZero?

LayerZero is an infrastructure designed to provide an effective solution for secure and fast asset transfers between blockchains. Although there are many initiatives established for this purpose, LayerZero stands out with its unique working structure and solution-oriented approach, setting itself apart from other projects.

LayerZero aims to integrate as many blockchains as possible to enable applications on different blockchains to transfer data seamlessly between each other. In doing so, it facilitates liquidity and user base interoperability across various blockchains, creating a much larger ecosystem.

How Does LayerZero Work?

LayerZero currently connects dozens of different blockchains. Its unique infrastructure is based on the way it utilizes Oracle, Relayer, and Endpoint structures.

Let’s break down how LayerZero works using a direct example: Suppose a user wants to transfer cryptocurrency from Blockchain A to Blockchain B.

1. The user sends a transfer request to LayerZero for the asset on Blockchain A.
2. The Relayer on LayerZero generates the transaction details and a verification proof for the asset to be transferred.
3. The Oracle forwards the proof and the transaction details created by the Relayer to the target blockchain.
4. The Endpoint on Blockchain B checks whether the data from the Relayer and Oracle match. If they do, the Endpoint sends the transaction request to the nodes on Blockchain B, enabling the transfer to be completed. If the data does not match, the request is rejected, and the transfer does not take place.

In this process, the part referred to as the Endpoint essentially acts as a communication node. Each blockchain integrated with LayerZero must create its own Endpoint. This allows the Oracle and Relayer data to be verified, enabling two different networks to communicate through LayerZero.

The Oracle and Relayer components mentioned above are the main elements that ensure the security of LayerZero. It is crucial for these two elements to operate independently. This is because the Endpoint only approves and transmits the transaction if the data from these two components match. Therefore, if manipulated data is transmitted from either the Relayer or Oracle, it will not match with the other set of data, making it difficult to manipulate transactions on the network.

Ultra Light Node

One of the key components of LayerZero’s unique operating system is the Ultra Light Node (ULN) infrastructure. Normally, in blockchains, there are two types of nodes: full nodes and light nodes. As the cost of running full nodes increases over time, centralization issues start to arise for blockchains. To prevent this and enhance efficiency, LayerZero nodes are required to keep data off-chain, thereby reducing the burden on the nodes. Since the biggest problem for nodes is usually the size of the dataset they have to maintain, nodes on LayerZero are significantly more lightweight.

Get to Know LayerZero

• LayerZero was founded by Bryan Pellegrino, Ryan Zarick, and Caleb Banister.
• The initial work on the project began in 2021.
• ZRO coin is the native cryptocurrency of LayerZero.
• The ZRO token is a governance token. It allows voting on changes related to LayerZero.
• To explore the LayerZero website, click here, and for detailed information, click here.

How to Store LayerZero (ZRO)?

ZRO coin operates on the Ethereum network. It can be stored in web, browser, desktop, hardware, and mobile wallets that support the Ethereum network.

How to Buy and Sell LayerZero (ZRO)?

To buy and sell LayerZero (ZRO) with Turkish Lira or Tether (USDT), you can use the BtcTurk | Kripto website or the BtcTurk | Kripto mobile app. If you are not a member of BtcTurk | Kripto, you can sign up immediately on our website or mobile application and buy LayerZero (ZRO). You can deposit Turkish Lira 24/7 using one of our seven affiliated banks.