Introducing LayerZero V2
LayerZero
LayerZero enables developers to create and configure unified applications, tokens, and data primitives — regardless of chain — through the transmission of arbitrary messages.
Like TCP/IP standardized internet development, LayerZero’s goal is to standardize application development across all chains. This concept of unified cross-chain development is encapsulated in the word “omnichain” and is how LayerZero envisions the future of crypto.
LayerZero is a protocol designed to connect blockchains while upholding the following fundamental principles:
- Permissionless: Anyone may run the infrastructure necessary to verify and execute messages. Anyone can build on and interact with LayerZero.
- Censorship resistant: No individual message can be executed until all previous messages have been verified, meaning no individual message can ever be censored on any pathway.
- Immutable: Endpoints on each chain exist in the form of smart contracts. New verification libraries can be added as append-only updates. These are non-upgradeable and will exist in perpetuity.
LayerZero V2 TL;DR
Today marks the deployment of LayerZero V2 on 40+ testnets and the introduction of the V2 technical whitepaper. V2 creates an omnichain network of blockchains for developers to build universal applications.
The upgrade introduces key features:
- Decentralized Verification Networks (DVNs): Replacing the V1 Oracle, this permissionless role empowers any entity capable of verifying cross-chain data packets to join LayerZero as a DVN.
- Adapters: Axelar and CCIP DVN adapters will be available today on testnet and when mainnet launches. Other adapters planned for 2024 will allow developers to integrate any type of native bridge, third-party bridge, middle chain, oracle, or other verification methods into LayerZero, thereby avoiding vendor lock-in at the security level.
- X of Y of N: This is a modular approach to verification empowering applications to neither overpay nor underpay for security depending on use case. X of Y of N allows applications to combine DVNs however they like. For instance, a “1 of 3 of 5” combination of DVNs would include one required DVN and two arbitrary DVNs out of a total of five that must verify a message for cross-chain execution.
- Permissionless Execution: Replacing the Relayer and separating execution from verification, LayerZero V2 introduces Executors — a permissionless role that facilitates smooth execution on the destination chain, simplifies gas payments, and offers customizable gas settings.
- Security Stack: Each Omnichain Application (OApp) must configure a Security Stack comprising DVNs, Executor(s), chain confirmations, MessageLibraries, and chain pathways for omnichain messaging. This setup grants applications complete control over security. With V2, are opt-in, with the recommendation being that OApp developers set their own Security Stack.
- Increased Throughput: By providing the option for lazy nonce enforcement or strict nonce enforcement, V2 allows developers to choose whether they want to execute transactions in order or out of order. With out-of-order transaction execution, LayerZero’s throughput matches that of the destination chain while maintaining censorship resistance.
- Enhanced Programmability: V2’s improved protocol contract interfaces, path-specific libraries, new design patterns, and horizontal composability redefine application interaction, fostering flexibility and uninterrupted cross-chain transactions.
- Unified Semantics: V2 enables developers to build applications that work the same across every blockchain LayerZero has an endpoint on — including non-EVM chains.
- V1 Compatability: For teams building on V1, the V2 launch will allow for both forward and backward compatibility.
All told, with the launch of V2, LayerZero aims to embed itself as a crypto primitive on par with Bitcoin and Ethereum. Bitcoin as the protocol for crypto money, Ethereum as the protocol for crypto finance, and LayerZero as the protocol for crypto internet.
With DVNs and Adapters, LayerZero V2 sits at the transport layer of the blockchain economy, whereas other “cross-chain” solutions battle for the right to verify messages. LayerZero can now act as a quasi-aggregator of verification methods. Any type of verification method — be it bridge, oracle, attestation service, or a blockchain itself — can be plugged into V2 as a DVN. Application owners building on LayerZero may configure DVNs based on their project’s use case.
For example, application developers can opt to verify messages through shared-security adapters like Axelar and CCIP or go with enterprise signers like Blockdaemon and Google Cloud — or a combination of all four. And, most importantly, this decision is not set in stone, as the Security Stack configuration can be changed by the application owner (or a delegate) if a DAO or business decides to do so. Independent DVNs confirmed at testnet launch will include entities run by Blockdaemon, Google Cloud, Animoca, Delegate, Gitcoin, Nethermind, P2P, StableLab, Switchboard, Tapioca, LayerZero Labs, and Polyhedra. The number of DVNs should increase as mainnet approaches — with 50+ chains to support, there is a need for many DVNs.
Permissionless execution and lazy nonce-enforcement improve both liveness and throughput properties. Liveness concerns are minimized since anyone (third-party executor, application, end-user) may now execute transactions. Throughput is maximized to align with that of the destination chain. In addition, the protocol itself is easier to build on, with new design patterns available for developers to send, receive, and compose messages across chains. Furthermore, the core protocol is built in such a way that extending to new chains — even non-EVM chains — can be done without changing how messages are sent.
V2 Launch Details
LayerZero V2 endpoint contracts are deployed on 40+ testnets starting today, with the goal being to give developers time to experiment with new Security Stacks and Endpoints before going live on mainnet.
Mainnet launch is targeted for January 2024. The launch will include V2 endpoints on each chain that V1 supports. All Omnichain contract standards — OApp, OFT, and ONFT — will be available by mainnet launch. On testnet, only OApp and OFT will be available.
Mainnet launch will include support from the following infrastructure entities:
- DVNs: Instructions on how to run a DVN are available in the LayerZero documentation. Read more here. In addition, Animoca, Blockdaemon, Delegate, Gitcoin, Nethermind, Obol, P2P, StableLab, Switchboard, Tapioca, Polyhedra, LayerZero Labs, and Google Cloud will run DVNs on testnet. Adapters for Axelar and CCIP will also be available for testnet and mainnet launch, with more coming soon.
- Executors: Instructions on how to spin up an Executor are available in LayerZero documentation. Read more here. In addition, LayerZero Labs will offer third-party execution options for dApps. LayerZero Scan will also have a tab available for end-user execution.
Reach Out With Any Questions
For teams building on V1, the V2 launch will allow for both forward and backward compatibility. You can find migration information specifically inside our documentation. It is important to note that V1 is still in production and will continue to be in production in perpetuity. As of now, V2 brings no breaking changes to V1 (this might change when V2 endpoints extend to new chains).
As mainnet launch approaches, we will continue to update our documentation with any changes and publish educational resources to make the transition from V1 to V2 as smooth as possible.
If you are planning on building on V2, have questions about migrating from V1, or something in between, please join our Discord.
