LayerZero preps for 2024 token launch
The cross-chain messaging protocol is launching its token before Q3 next year.
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Blockchain interoperability firm LayerZero Labs has confirmed that its protocol is making a token, and it’s slated for launch sometime in the first half of 2024.
Responding to months of speculation from its community about the creation of a token, LayerZero issued a clarifying statement on X, in hopes of putting conflicting rumors to rest.
LayerZero has always been built with the ability to have a native token within the protocol, as can be seen in the immutable code launched on day 1. We’ve heard the community discussion over the last few months and the lack of clear communication around this. We’ll state now in…
— LayerZero Labs (@LayerZero_Labs) December 7, 2023
With the token confirmed to be in LayerZero’s pipeline, speculations about the protocol’s future developments have been making rounds in the crypto space. Under these circumstances, it’s crucial to consider the project’s beginnings and recent performance.
Earlier this year, LayerZero Labs obtained a $3 billion valuation, with backing from prominent VCs such as a16z (Andreessen Horowitz) and Sequoia Capital, as well as serial angel investors.
While the protocol is still largely in development, its initial foray into achieving its “omnichain” vision proposes a singular protocol that merges current multi-chain and cross-chain solutions for interoperability within the crypto ecosystem. What this does is it attempts to allow and service all types of decentralized applications to operate cohesively (and, to some extent, interdependently) through one chain.
LayerZero’s ambition of building an interoperability protocol is similar to initiatives from projects like Polkadot, Solana, and Cosmos. It differs in one key aspect though: composability.
In the context of multiple blockchains and dApps, composability represents the capability of varying components or systems to seamlessly interact and work alongside each other without causing friction because of their differences. This establishes a baseline for both the performance and reliability of the network. The protocol’s architecture also serves real-time cross-chain liquidity transfers, alongside a decentralized oracle network and relayer network.
A highly-composable blockchain allows developers to build and launch complex apps and service frameworks by using existing modules and libraries, introducing flexibility to their workflows. This means that new applications can be launched faster and tested more consistently as these systems mature.
LayerZero helps this initiative by developing and strengthening the infrastructure for cross-chain messaging which helps different chains and protocols communicate more securely. Notable chains that are currently utilizing LayerZero include Ethereum, BNB Chain, Avalanche, Aptos, Base, Polygon, Arbitrum, Optimism, Fantom, Gnosis, Harmony, zkSync Era, Kava, Linea, Conflux, Scroll, and Manta, among others.
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