Compilation: Babywhale, Techub News

Yesterday evening Beijing time, LayerZero released the V2 version update and announced that it will deploy the V2 version "endpoint" on over 40 chains supported by the V1 version. In the blog post introducing the V2 version, LayerZero wrote:

LayerZero enables developers to create and configure unified application, token, and data primitives through the transmission of arbitrary messages, without being limited by the chain. Similar to the standardization of internet development with TCP/IP, LayerZero aims to standardize all on-chain application development. This unified cross-chain development concept is summarized as "omnichain," which is also LayerZero's vision for the future of cryptocurrency.

LayerZero is a protocol designed to connect blockchains while adhering to the following basic principles:

Permissionless: Anyone can run the infrastructure required for verifying and executing messages. Anyone can build on LayerZero and interact with it.

Censorship-resistant: No message can be executed until all previous messages have been verified, meaning that no message can be censored in any way.

Immutable: Each endpoint on the chain exists in the form of a smart contract. New verification libraries can only be added as append-only updates. These libraries are not upgradeable and will exist permanently.

Previously, LayerZero has been criticized for centralization issues. How has the latest V2 version optimized in response to this widespread concern in the market?

What is LayerZero V2

LayerZero is a message transmission protocol, not a blockchain. LayerZero utilizes smart contracts deployed on each chain, combined with the Decentralized Verifier Network (DVN) and Executor, enabling interaction between different blockchains.

In LayerZero V2, message verification and execution are separated into two distinct stages, providing developers with more control over application security configuration and independent execution. Combined with improved handling, message throughput, programmability, and other contract-specific improvements, LayerZero V2 provides a more flexible, high-performance, and future-oriented message transmission protocol.

New Security and Execution Methods

LayerZero V2 provides direct improvements for existing applications deployed on Endpoint V1, while also offering new features to enhance the creativity and scalability of full-chain applications deployed on the new Endpoint V2. Applications deployed on Endpoint V1 can achieve two major improvements in application security and execution by migrating their application's message library to the Ultra Light Node 301. Refer to the Migration Guide for more information.

"X of Y of N" Message Verification

The new Ultra Light Node 301 (V1) and Ultra Light Node 302 (V2) allow application owners to configure custom security stacks, selecting a set of different DVNs to verify the payload hash on the destination MessageLib. A subset (X) of all these DVNs must verify the payload hash, and a threshold (Y) of a set of optional DVNs (N) must also verify the same payload hash before delivering the data packet. Now, OApp owners can utilize multiple verification models to achieve the desired security and cost-effectiveness based on their application requirements. You can select the following DVNs at launch or establish DVNs without permission:

LayerZero Labs (default): Default DVN maintained by LayerZero Labs.

Google Cloud (default): Default DVN supported by Google Cloud.

Nethermind: Elastic DVN hosted by Nethermind, enabling enterprises and developers worldwide to access decentralized networks and develop on them.

Delegate: DVN maintained by Delegate, the development team behind trusted on-chain security tools used by projects such as Azuki, BAYC, Squiggles, and RTFKT.

Tapioca: Pearlnet is a DVN established for the TapiocaDAO ecosystem, allowing OApps to control their modular verification network.

Animoca: DVN maintained by leading gaming and blockchain company Animoca Brands.

Blockdaemon: DVN maintained by Blockdaemon, ensuring optimal uptime through their unique monitoring and alerting systems. Blockdaemon's infrastructure guarantees institutional-grade security and is ISO27001 certified.

Gitcoin: A DVN operated by the Ethereum-native public goods development team Gitcoin.

Polyhedra zkLightClient: Utilizes Polyhedra's zkBridge to retrieve and verify message data, allowing application developers to use zero-knowledge proofs to secure message transmission.

P2P: A DVN supported by P2P.org, a PoS validator and RPC node provider operating continuously since 2018.

Obol: A DVN maintained by Obol, driving the development and adoption of composable, Ethereum-compatible distributed validator middleware through the Obol network.

StableLab: A DVN operated by StableLab, a leader in professional authorization, governance framework design, and DAO product development.

Axelar DVN Adapter: Adapts DVN to Axelar for identity verification.

CCIP DVN Adapter: DVN adapter using CCIP for message verification.

Independent Message Execution

In LayerZero V1, the relayer handles both message verification and execution:

Oracle: Handles verification of message block headers.

Relayer: Handles verification of tx-proofs and execution of messages.

In LayerZero V2, message verification is now handled by the security stack, while execution is carried out by the executor:

Security Stack: The (X of Y of N) DVN selected by your application.

Executor (optional): Automatically invoked by your application to receive messages.

For new applications deployed on Endpoint V2, this invocation is fully permissionless.

New Protocol Contracts

In addition to the new message library, LayerZero V2 has also improved the core protocol architecture.

Developers can deploy applications using the Endpoint V2 contract standard, providing advantages such as higher message throughput, improved programmability, and simplified contracts.

Optimized Message Handling

With the separation of message verification and execution in the V2 protocol, nonces for messages can now be executed out of order while still maintaining censorship resistance:

Verified: Nonce of the message packet has been successfully verified and awaits execution.

Delivered: Message has been successfully executed and received by the destination application.

In V1, by default, if a sent message fails to execute at the destination, the related path is blocked by a "storedPayload" event, temporarily halting the execution of all subsequent messages.

Now, by default, even if previous messages fail to execute, the flow of subsequent messages continues to be delivered and executed.

Ordered execution can still be enabled at the application level by configuring Ordered Message Delivery.

Higher Message Throughput

This Unordered Message Delivery improves chain-level nonce tracking by using Lazy Inbound Nonce and Inbound Nonce as guides for where to attempt message execution, providing the highest possible message throughput (i.e., the chain itself).

Lazy Inbound Nonce: The most frequently executed message nonce in the system.

Inbound Nonce: The latest verified message nonce, with all previous nonces also verified.

As nonces must be verified before execution, this system allows LayerZero V2 to verify and execute unordered data packets without compromising censorship resistance, simplifying the message execution process.

Improved Programmability

LayerZero V2 also significantly enhances programmability in multiple aspects:

Simplified Protocol Contract Interfaces: Improved contract interfaces in LayerZero V2 simplify message routing and processing, reducing the complexity of sending and receiving messages through the protocol. Developers can work with more confidence and efficiency.

Path-Specific Libraries: Path-specific libraries in Endpoint V2 allow developers to configure different MessageLibs for specific paths (from source to destination), providing greater flexibility and customization for applications.

Horizontal Composability: The new sendCompose and lzCompose interfaces can transform external calls into new message packets, allowing applications to maintain clear separation between the logic of handling message reception (lzReceive) and the logic of the external call itself (lzCompose). This ensures that each step is executed correctly and independently of other steps, enabling powerful cross-chain interactions.

Simplified Contracts

LayerZero V2 introduces multiple improvements to enhance gas efficiency when developers and users interact with LayerZero contracts. These improvements include:

Optimized Base Contracts: All LayerZero contract standards have been restructured to reduce the gas cost of base contracts.

Compiler Efficiency: Improvements to the contracts better optimize the compiler, thereby reducing the gas cost of deployment and execution.

Chain Compatibility

V2 also significantly improves chain compatibility, further enhancing developers' ability to develop multifunctional, efficient full-chain applications on a wider range of blockchains.

Chain-Agnostic Design: The protocol defines isolation between composition calls (compositionSend for storing data, lzCompose for composing contracts). This allows developers to build more unified application designs on blockchains with different environmental assumptions, such as lack of runtime scheduling. This is crucial for achieving broad compatibility with non-EVM chains and maintaining a unified OApp interface on each chain.

Improved Gas Payment Options: Terminals can now specify alternative gas tokens on a given chain during deployment. This flexibility is applicable to blockchains that may have unique gas mechanisms or fee structures.

Path-Specific Default Libraries: Endpoints now support the use of different default libraries for each chain path. This feature enables more streamlined and efficient message processing based on the specific characteristics and unique requirements of each chain pair.

These improvements provide a more chain-native approach to message processing, helping OApp developers design a unified single application architecture across both EVM and non-EVM chains.

Consistent Security Standards

Application-Level Control: While application contracts can choose predefined default settings, LayerZero allows you to configure application settings for each path, providing unparalleled flexibility and security.

Immutable Core Contracts: LayerZero only uses immutable core contracts. This provides developers with a connection that can be interacted with in a long-term stable and predictable manner, ensuring security and reliability are not affected by external updates.

Backward Compatibility: LayerZero's on-chain message libraries are immutable and will never be removed or deprecated. LayerZero always maintains backward compatibility with previous MessageLib versions.

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