Introduction

We live in a multichain world with multiple L1s and L2s, each with its own series of tradeoffs and properties. However, as the number of chains continues to increase, liquidity gets spread across multiple places, forcing users to “bridge” their assets from one chain to another.

Background

Bridges are one of the most targeted pieces of infrastructure by malicious actors. Not only do they hold large amounts of assets, but they also feature a large track record of vulnerabilities. According to the Rekt Leaderboard, six out of the top ten largest crypto hacks have involved bridge exploits, highlighting the importance of security in these systems. Data from DefiLlama reports that out of the 5.79 billion hacked in DeFi, 2.83 billion (49%) can be attributed to bridges.

Since its launch on March 17, 2022, LayerZero has successfully processed millions of messages involving billions of dollars worth of assets across over 40 blockchain networks, all without any security breaches. This is not due to the luck of the draw, but because LayerZero enables a solution that removes the need for assets to be held in bridges where they can be attacked.

Unlike traditional bridges that require locking or wrapping tokens, LayerZero functions as a messaging protocol focusing on unifying liquidity across different blockchain networks. At its core, it enables communication between different blockchains – not just asset transfers.