Omnichain Token: A New Token Standard That Can Do New Miracles
Key Points:
- The asset cross-chain bridges are just asset mappings between chains.
- LayerZero allows information verification between public chains by installing “ultra-light nodes” on each of the main public chains.
- As more applications embrace LayerZero, the popularity of Omnichain-Token in the industry will increase rapidly and become the new worldwide standard.
If you’ve been involved in DeFi initiatives in the last two years, you’ve probably been perplexed by the same tokens with various names in several public chains. For example, why is USDC broken into two versions in Avalanche: USDC and USDC.e? What are the key distinctions between multiple ETH standards such as ceETH, ETH.grv, and soETH produced by various cross-chains?
Moreover, with the emergence of several new public chain platforms throughout this cycle, asset cross-chain has become a hard requirement of all currency circle consumers. With the steady rise of cross-chain assets, the standards of cross-chain assets are not consistent, liquidity fragmentation and many security concerns that follow have also created significant challenges for the initial batch of users who encounter cross-chain assets, including asset loss.
So, what is the cause of this occurrence? Is there a better method to handle customer pain points while crossing chains and delivering more relevant cross-chain services now that multi-chain development has become an unavoidable trend in the industry?
Traditional asset cross-chain bridges’ inherent flaws
In reality, the root source of the aforementioned issues is the asset cross-chain bridges. The asset cross-chain bridge’s sole job, as the name implies, is to assist users in completing cross-chain asset transfers. Unfortunately, these ostensibly “transfers” did not really assist users in transferring assets but instead used a “lock-in casting” approach, recasting a mapping token of the original asset on the transfer-in chain.
In brief, for the same target chain, Ethereum transferred by the user via the A cross-chain bridge will be referred to as AETH, while Ethereum sent via the B cross-chain bridge will be referred to as BETH. Because the titles of the two assets differ and the security differs, they cannot be exchanged for equal value. This is the root cause of cross-chain asset standards misunderstanding and liquidity fragmentation. Furthermore, each lock-up casting procedure raises the capital amount of the lock-end fund pool, which presents an opportunity for hackers and has resulted in several cross-chain bridge security problems in recent years.
To entirely eliminate the aforementioned issues, it is required to rely on lower protocol-level enhancement. This is also the information cross-chain, or protocol layer cross-chain, which has recently received a lot of attention.
LayerZero is a protocol layer product that enables cross-chain information exchange
LayerZero, the first to set out and accomplish exceptional achievements on the track of information cross-chain, is now well-known by the majority of users.
LayerZero, in a nutshell, enables information verification between public chains by installing “ultra-light nodes” on each major public chain. This approach and the more well-known IBC protocol’s verification mechanism are all independently validated by installing nodes locally on the public chain to undertake independent verification of transactions on the external chain. As a result, when compared to competing cross-chain solutions, LayerZero’s security is more safe and trustless.
Moreover, the LayerZero cross-chain protocol includes an oracle to oversee the relayer in charge of message delivery (currently, the main partner is Chainlink, which is the most well-known and safest in the industry). In principle, as long as the relayer and the oracle do not do evil at the same moment, LayerZero will be secure.
LayerZero delivers a secure and convenient underlying cross-chain protocol through the creation of these protocol layer technologies, which is fundamentally different from existing cross-chain bridge solutions.
Omnichain is a LayerZero-based system that combines all chains into one
Once LayerZero successfully solved the transmission problem of underlying cross-chain information, the cross-chain problem, which had previously created numerous problems for consumers in terms of user experience and asset security, was effectively solved.
The LayerZero-based multi-chain application may decouple the underlying multi-chain architecture from the unified product of the application layer, allowing end users to disregard the intricate variations between multiple public chains and instead see the whole blockchain ecology as a whole. Omnichain is the ultimate public chain form that has gone through the abstraction of LayerZero and accomplished the final integration of all chains.
Users on Omnichain will no longer see distinct asset packaging formats as a result of different cross-chain bridges. Assets in all public chains can be considered native assets, and they all benefit from the security offered by the underlying LayerZero. As a result, in the Omnichain ecosystem, user assets will be more unified and safe, as well as composable, which is critical for blockchain goods.
Because this sort of asset standard has expanded beyond the asset formats we are accustomed to, such as ERC-20 (Ethereum), BRC-20 (BSC), or SPL (Solana), which are restricted to a single public chain, we must rethink it. name.
Omnichain assets are classified as Omnichain-FT (OFT) or Omnichain-NFT (ONFT), depending on whether the token is homogenous.
Omnichain Token Application Scenarios
BTC.b (Omnichain-FT)
Many readers may be unfamiliar with the asset name BTC.b. The original BTC.b is, in fact, a Bitcoin cross-chain asset issued by Avalanche. If you are not an Avalanche core user, you are unlikely to hear about him. As a result, in terms of market popularity, BTC.b is far inferior to WBTC in Ethereum.
BTC.b gains the ability to transfer safely between Ethereum, Polygon, Arbitrum, Aptos, and any other blockchain supported by LayerZero in the future as a result of the formal collaboration between BTC.b and LayerZero and becoming an OFT that may freely cross-chain.
Since then, BTC.b liquidity on each chain has been organically split. Users of BTC.b do not need to modify the way they interact with the asset regardless of which chain they utilize. At the same time, it will make it easier for other cross-chain dApps to integrate BTC.b, which uses the OFT standard.
Furthermore, it is worth noting that the BTC.b to LayerZero connection process is really straightforward. The project party does not need to tackle the cross-chain technical difficulty in person because it simply has to be updated and comply with LayerZero’s cross-chain standard. As a result, just two codes and around ten lines of code are required to convert BTC.b from the conventional token format to OFT.
Meanwhile, the new OFT version of BTC.b can keep the original contract address to minimize user confusion caused by various addresses in numerous chains.
PancakeSwap
The OFT version of BTC.b mentioned above only assists a single asset in achieving full-chain deployment; however, the OFT standard can also support more complex DeFi project tokens, assisting it in integrating different public chains while achieving multi-chain deployment ecology, the most well-known of which is PancakeSwap.
By incorporating LayerZero, PancakeSwap’s native token, CAKE, became an OFT token for multi-chain native deployment in December of last year. PancakeSwap took the lead in finalizing the integration with the popular new public chain Aptos and developed Aptos PancakeBridge, with the assistance of LayerZero’s bottom layer for many public chains.
It is worth noting that LayerZero’s conjunction with the non-EVM standard Aptos demonstrates the company’s superior cross-chain integration capabilities. It can not only handle cross-chain information transfer of any EVM-compatible public chain natively, but it can also combine non-EVM into a unified Multi-chain system.
PancakeSwap has successfully implemented asset trading pairings such as CAKE on Aptos using its new Aptos bridge technology. And the Aptos version of PancakeSwap’s liquidity mining has already begun. The current Aptos version of PancakeSwap has no differences in use from the locally installed local DeFi protocol, and technical support is provided via LayerZero’s native cross-chain standard OFT.
Little Pudgys (Omnichain – NFT)
LayerZero can assist NFT in completing native cross-chain integration in addition to assisting homogenous tokens in completing the transition of multi-chain deployment.
Throughout the previous 2 years of the NFT bull market, many well-known NFT projects have been centered in the Ethereum ecosystem because it has the greatest consensus, the most liquidity, and the best infrastructure. The new public chain’s NFT initiatives lack liquidity and community support and have a somewhat isolated interaction with Ethereum’s NFT ecosystem.
The high gas charge of Ethereum has significantly raised the threshold for new users, making it more difficult for them to connect with popular NFT projects.
As a result, numerous Ethereum-native NFT initiatives have developed a high demand for NFT cross-chain to access Web3 consumers better. Unfortunately, it is difficult for the typical cross-chain bridge to employ the lock-casting method to deliver a satisfactory experience for the cross-chain NFT. The NFT assets generated across chains in this manner are difficult to unite with the Ethereum ecosystem regarding pricing and liquidity. They also face several challenges in future integration.
Among these is Lil Pudgys, a well-known Ethereum NFT project with insufficient cross-chain infrastructure. The Lil Pudgys team has also been researching various NFT cross-chain options to reach as many Web3 users as possible. LayerZero’s Omnichain-NFT solution completely matches the demands of the Little Pudgys team.
Little Pudgys has evolved into a multi-chain native NFT solution using the Omnichain-NFT standard. It now supports popular public chains like Polygon, BNB Smart Chain, and Arbitrum. Users receive Lil Pudgys in the new public chain that is not fundamentally different from those in Ethereum, and the speed of cross-chain transfers is also substantially enhanced.
Conclusion
From the above examples, it is evident that the introduction of LayerZero is intended not just to give customers another option in the already highly competitive cross-chain bridge market but also to attempt to fundamentally tackle the market’s present difficulties.
There is a basic issue. As more apps embrace LayerZero, the industry popularity of Omnichain-Token will accelerate, and it will eventually become the de facto worldwide standard for cross-chain assets, assisting the LayerZero protocol in capturing more value.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
Author
Knowledge
Omnichain Token: A New Token Standard That Can Do New Miracles
Key Points:
- The asset cross-chain bridges are just asset mappings between chains.
- LayerZero allows information verification between public chains by installing “ultra-light nodes” on each of the main public chains.
- As more applications embrace LayerZero, the popularity of Omnichain-Token in the industry will increase rapidly and become the new worldwide standard.
If you’ve been involved in DeFi initiatives in the last two years, you’ve probably been perplexed by the same tokens with various names in several public chains. For example, why is USDC broken into two versions in Avalanche: USDC and USDC.e? What are the key distinctions between multiple ETH standards such as ceETH, ETH.grv, and soETH produced by various cross-chains?
Moreover, with the emergence of several new public chain platforms throughout this cycle, asset cross-chain has become a hard requirement of all currency circle consumers. With the steady rise of cross-chain assets, the standards of cross-chain assets are not consistent, liquidity fragmentation and many security concerns that follow have also created significant challenges for the initial batch of users who encounter cross-chain assets, including asset loss.
So, what is the cause of this occurrence? Is there a better method to handle customer pain points while crossing chains and delivering more relevant cross-chain services now that multi-chain development has become an unavoidable trend in the industry?
Traditional asset cross-chain bridges’ inherent flaws
In reality, the root source of the aforementioned issues is the asset cross-chain bridges. The asset cross-chain bridge’s sole job, as the name implies, is to assist users in completing cross-chain asset transfers. Unfortunately, these ostensibly “transfers” did not really assist users in transferring assets but instead used a “lock-in casting” approach, recasting a mapping token of the original asset on the transfer-in chain.
In brief, for the same target chain, Ethereum transferred by the user via the A cross-chain bridge will be referred to as AETH, while Ethereum sent via the B cross-chain bridge will be referred to as BETH. Because the titles of the two assets differ and the security differs, they cannot be exchanged for equal value. This is the root cause of cross-chain asset standards misunderstanding and liquidity fragmentation. Furthermore, each lock-up casting procedure raises the capital amount of the lock-end fund pool, which presents an opportunity for hackers and has resulted in several cross-chain bridge security problems in recent years.
To entirely eliminate the aforementioned issues, it is required to rely on lower protocol-level enhancement. This is also the information cross-chain, or protocol layer cross-chain, which has recently received a lot of attention.
LayerZero is a protocol layer product that enables cross-chain information exchange
LayerZero, the first to set out and accomplish exceptional achievements on the track of information cross-chain, is now well-known by the majority of users.
LayerZero, in a nutshell, enables information verification between public chains by installing “ultra-light nodes” on each major public chain. This approach and the more well-known IBC protocol’s verification mechanism are all independently validated by installing nodes locally on the public chain to undertake independent verification of transactions on the external chain. As a result, when compared to competing cross-chain solutions, LayerZero’s security is more safe and trustless.
Moreover, the LayerZero cross-chain protocol includes an oracle to oversee the relayer in charge of message delivery (currently, the main partner is Chainlink, which is the most well-known and safest in the industry). In principle, as long as the relayer and the oracle do not do evil at the same moment, LayerZero will be secure.
LayerZero delivers a secure and convenient underlying cross-chain protocol through the creation of these protocol layer technologies, which is fundamentally different from existing cross-chain bridge solutions.
Omnichain is a LayerZero-based system that combines all chains into one
Once LayerZero successfully solved the transmission problem of underlying cross-chain information, the cross-chain problem, which had previously created numerous problems for consumers in terms of user experience and asset security, was effectively solved.
The LayerZero-based multi-chain application may decouple the underlying multi-chain architecture from the unified product of the application layer, allowing end users to disregard the intricate variations between multiple public chains and instead see the whole blockchain ecology as a whole. Omnichain is the ultimate public chain form that has gone through the abstraction of LayerZero and accomplished the final integration of all chains.
Users on Omnichain will no longer see distinct asset packaging formats as a result of different cross-chain bridges. Assets in all public chains can be considered native assets, and they all benefit from the security offered by the underlying LayerZero. As a result, in the Omnichain ecosystem, user assets will be more unified and safe, as well as composable, which is critical for blockchain goods.
Because this sort of asset standard has expanded beyond the asset formats we are accustomed to, such as ERC-20 (Ethereum), BRC-20 (BSC), or SPL (Solana), which are restricted to a single public chain, we must rethink it. name.
Omnichain assets are classified as Omnichain-FT (OFT) or Omnichain-NFT (ONFT), depending on whether the token is homogenous.
Omnichain Token Application Scenarios
BTC.b (Omnichain-FT)
Many readers may be unfamiliar with the asset name BTC.b. The original BTC.b is, in fact, a Bitcoin cross-chain asset issued by Avalanche. If you are not an Avalanche core user, you are unlikely to hear about him. As a result, in terms of market popularity, BTC.b is far inferior to WBTC in Ethereum.
BTC.b gains the ability to transfer safely between Ethereum, Polygon, Arbitrum, Aptos, and any other blockchain supported by LayerZero in the future as a result of the formal collaboration between BTC.b and LayerZero and becoming an OFT that may freely cross-chain.
Since then, BTC.b liquidity on each chain has been organically split. Users of BTC.b do not need to modify the way they interact with the asset regardless of which chain they utilize. At the same time, it will make it easier for other cross-chain dApps to integrate BTC.b, which uses the OFT standard.
Furthermore, it is worth noting that the BTC.b to LayerZero connection process is really straightforward. The project party does not need to tackle the cross-chain technical difficulty in person because it simply has to be updated and comply with LayerZero’s cross-chain standard. As a result, just two codes and around ten lines of code are required to convert BTC.b from the conventional token format to OFT.
Meanwhile, the new OFT version of BTC.b can keep the original contract address to minimize user confusion caused by various addresses in numerous chains.
PancakeSwap
The OFT version of BTC.b mentioned above only assists a single asset in achieving full-chain deployment; however, the OFT standard can also support more complex DeFi project tokens, assisting it in integrating different public chains while achieving multi-chain deployment ecology, the most well-known of which is PancakeSwap.
By incorporating LayerZero, PancakeSwap’s native token, CAKE, became an OFT token for multi-chain native deployment in December of last year. PancakeSwap took the lead in finalizing the integration with the popular new public chain Aptos and developed Aptos PancakeBridge, with the assistance of LayerZero’s bottom layer for many public chains.
It is worth noting that LayerZero’s conjunction with the non-EVM standard Aptos demonstrates the company’s superior cross-chain integration capabilities. It can not only handle cross-chain information transfer of any EVM-compatible public chain natively, but it can also combine non-EVM into a unified Multi-chain system.
PancakeSwap has successfully implemented asset trading pairings such as CAKE on Aptos using its new Aptos bridge technology. And the Aptos version of PancakeSwap’s liquidity mining has already begun. The current Aptos version of PancakeSwap has no differences in use from the locally installed local DeFi protocol, and technical support is provided via LayerZero’s native cross-chain standard OFT.
Little Pudgys (Omnichain – NFT)
LayerZero can assist NFT in completing native cross-chain integration in addition to assisting homogenous tokens in completing the transition of multi-chain deployment.
Throughout the previous 2 years of the NFT bull market, many well-known NFT projects have been centered in the Ethereum ecosystem because it has the greatest consensus, the most liquidity, and the best infrastructure. The new public chain’s NFT initiatives lack liquidity and community support and have a somewhat isolated interaction with Ethereum’s NFT ecosystem.
The high gas charge of Ethereum has significantly raised the threshold for new users, making it more difficult for them to connect with popular NFT projects.
As a result, numerous Ethereum-native NFT initiatives have developed a high demand for NFT cross-chain to access Web3 consumers better. Unfortunately, it is difficult for the typical cross-chain bridge to employ the lock-casting method to deliver a satisfactory experience for the cross-chain NFT. The NFT assets generated across chains in this manner are difficult to unite with the Ethereum ecosystem regarding pricing and liquidity. They also face several challenges in future integration.
Among these is Lil Pudgys, a well-known Ethereum NFT project with insufficient cross-chain infrastructure. The Lil Pudgys team has also been researching various NFT cross-chain options to reach as many Web3 users as possible. LayerZero’s Omnichain-NFT solution completely matches the demands of the Little Pudgys team.
Little Pudgys has evolved into a multi-chain native NFT solution using the Omnichain-NFT standard. It now supports popular public chains like Polygon, BNB Smart Chain, and Arbitrum. Users receive Lil Pudgys in the new public chain that is not fundamentally different from those in Ethereum, and the speed of cross-chain transfers is also substantially enhanced.
Conclusion
From the above examples, it is evident that the introduction of LayerZero is intended not just to give customers another option in the already highly competitive cross-chain bridge market but also to attempt to fundamentally tackle the market’s present difficulties.
There is a basic issue. As more apps embrace LayerZero, the industry popularity of Omnichain-Token will accelerate, and it will eventually become the de facto worldwide standard for cross-chain assets, assisting the LayerZero protocol in capturing more value.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
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