Home Blockchain Why the hype and how to get involved

Why the hype and how to get involved

0 comment

In the turbulent world of cryptocurrencies, while most digital assets are in deep recession, LayerZero seems to be emerging as one of the most popular projects in the bear market.

The latest funding round for this blockchain infrastructure protocol included notable venture capitalists including Andreessen Horowitz, Christie’s, Sequoia Capital and Samsung Next. The Series B funding raised him $120 million, bringing the valuation to his $3 billion, which was three times the size of his last round.

Moreover, even investors are intrigued by LayerZero’s airdrop. This left many scrambling to find out how they could get involved in the project and share in its future success.

In fact, these achievements make LayerZero a standout success story in a lackluster cryptocurrency market, demonstrating that investors are still enthusiastic about infrastructure-focused crypto projects.

What is Layer Zero

LayerZero is an omnichain interoperability protocol designed for lightweight message passing between chains. LayerZero provides authentic and guaranteed message delivery with configurable trustlessness.

So what exactly is LayerZero?

LayerZero is a platform for inter-blockchain communication. Acting as a translator, it helps transfer information between different blockchains.

Just as we need translators to communicate with people who speak different languages, blockchains with different technical systems are difficult to communicate directly. This is where LayerZero comes in, acting as a translator to enable unambiguous communication between blockchains. The user can specify which information he wants to send to which blockchain, and LayerZero will convert and send the information between the two blockchains.

For example, if a user wants to send a message from Blockchain A to Blockchain B, the message will be sent to LayerZero first. LayerZero acts as an intermediary, forwarding messages to those responsible for performing tasks. Forward the message to the appropriate data node on blockchain B. Blockchain B verifies its authenticity and sends it to the specified receiving address.

In summary, LayerZero acts as a communication protocol or language translator, removing barriers between different blockchains and enabling efficient and accurate information exchange. Users don’t have to worry about the technical details of the two blockchains. Just specify the content and recipients and LayerZero will take care of the rest.

Why LayerZero?

LayerZero is designed to address limitations of existing interoperability protocols that rely on trusted intermediaries or administrators. The advantages of LayerZero are:

trustless transactions

LayerZero allows users to send and receive money directly between different blockchains without relying on intermediaries. This reduces the risk of losing money to hackers or rogue custodians.

Easy cross-chain development

LayerZero provides an easy way for developers to build applications that work on multiple blockchains. This means we can create new decentralized exchanges, wallets and betting platforms that are more flexible and innovative.

Support for native assets

LayerZero allows users to send cryptocurrencies directly between different blockchains without converting them to another type of token. This facilitates the use of various blockchains and reduces costs.

Increased liquidity

LayerZero makes it easy for people to buy and sell different cryptocurrencies across multiple blockchains. This means people get better prices and can buy and sell a wide range of digital tokens more easily.

As a new cross-chain communication protocol, LayerZero has important advantages such as enabling trustless transactions. However, they also face challenges such as technical complexity, ecosystem development difficulties, and potential security risks.

As the LayerZero team continues to optimize and enhance protocols, expand application scenarios, deepen cooperation with mainstream public chains, and improve security defense capabilities, LayerZero will play an important role as the foundation of cross-chain technology. I can.

How to get airdrop

LayerZero has yet to make an official announcement, but many are preparing for possible airdrops in the future. However, there are actions people can take to increase their chances of receiving airdrop tokens.

Based on experience, here are some things people can do.

  1. Stay active in the official LayerZero Discord community by posting regularly and interacting with other users. LayerZero may award more airdrop tokens based on community participation.
  2. Get more engagement on Twitter by retweeting and commenting on LayerZero tweets more often. LayerZero may award more airdrop tokens based on social impact on Twitter.
  3. Trade more LayerZero-related smart contracts to increase your chances of receiving airdrop tokens. LayerZero may allocate airdrop tokens based on transaction volume.
  4. Run more testnet transactions with the LayerZero testnet bridge. LayerZero may allocate more airdrop tokens based on how often the testnet is used.

In summary, LayerZero has not officially announced any airdrop plans, but community members should actively participate in the community, trade on the platform, and show their support for the LayerZero project to increase their chances of receiving airdrop rewards. can do.

Extracting insights from data

So what insights can we gain from the data?

User Insights: Growing interest in LayerZero’s technology

LayerZero daily unique users
LayerZero daily unique users

The increase in the number of unique users of LayerZero, especially since March, shows the growing interest in LayerZero’s technology. According to footprint analysis, as of April 20, LayerZero has over 866,000 unique users. This is due to the sharp increase in unique users since the end of March. This may have been facilitated by potential airdrop events promoting the technology and encouraging more users to use it.

LayerZero has established itself as a blockchain infrastructure provider with excellent transaction speeds and low fees. As a result, it is becoming an attractive option for developers and companies looking to build decentralized applications that can handle high volumes of transactions and users.

As more users join LayerZero, it is likely to attract more developers and applications, further increasing adoption and use cases for the network.

Transaction Insights: Challenges and Opportunities in a Growing User Base

The increase in transactions on LayerZero in March could be due to a successful marketing campaign aimed at promoting the platform’s features and benefits.

LayerZero User Submitted
LayerZero User Submitted

According to Footprint Analytics, 38.70% of all transactions were made by users who completed only one transaction. This indicates that the potential airdrop event has attracted many new users to try out the LayerZero protocol successfully. However, as users become accustomed to his LayerZero protocol and the number of transactions increases, the number of participating users will decrease.

Only a minority (3.58%) of users perform high-frequency transactions, and the majority simply complete their tasks rather than actively using LayerZero.

This user structure presents both challenges and opportunities for the LayerZero protocol. The opportunity lies in the fact that airdrop events can quickly attract new users. The challenge is to convert more new users into loyal and highly active users, thereby increasing transaction volume on the platform. and increase user retention.

Blockchain Insights: Layer 2 Blockchains Perform Better

Arbitrum Optimism and Polygon stand out for the number of unique users followed by the LayerZero protocol being extended across various networks.

LayerZero monthly unique users per chain
LayerZero monthly unique users per chain

There are currently projects such as Stargate, Hashflow, Radiant Capital, SushiSwap, Rage Trade, etc. to integrate the LayerZero protocol into cross-chain trading, lending, liquidity mining and NFTs. These projects can use LayerZero’s protocol to enable asset transfer, contract invocation, and message passing across different chains. LayerZero provides users on high-performance networks with specialized tools and services to further drive adoption and use cases for its technology.

In summary, data analysis of LayerZero’s user and transaction volume results show promising growth and potential adoption in the blockchain space. By improving user engagement and retention, supporting high-performance networks, and expanding its reach, LayerZero is well-positioned to become a leading blockchain infrastructure provider.

Contributors to this work are footprint analysis community.

The Footprint Community is a place to help data and crypto enthusiasts around the world understand and gain insight into Web3, the Metaverse, DeFi, GameFi, or any other area of ​​the budding blockchain world. Here you’ll find vibrant and diverse voices who support each other and move the community forward.

limewire token
Tags: hypeinvolved
index (2)

About Us

Coingeography is a principal independent digital media resource with a coverage of comprehensive news on Crypto assets, NFT, Metaverse and the surging Web 3 space. We here deliver the most authentic and precise news from the arena of the Web 3 space and crypto assets. 

Feature Posts

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Copyright ©️ All rights reserved. | CoinGeography – Powered by Corum8