LayerZero Labs, Eigen Labs raise their stake in cross-chain transactions
The team behind Ethereum's re-staking protocol EigenLayer and cross-chain messaging protocol LayerZero has introduced a new system to make cross-chain communication more secure.
In a blog post on October 2, LayerZero Labs announced its partnership with Eigen Labs and introduced a framework for “CryptoEconomic Decentralized Verifier Networks” (DVNs).
The system combines technical validation with financial incentives to ensure secure cross-chain messaging.
It addresses several issues regarding on-chain security, such as the lack of economic incentives to ensure trust, limited participation in security, and flexibility in security models.
DVNs use cryptoeconomic security where they share assets that can be taken away or broken if they act dishonestly or go wrong.
The system has four main mechanisms to ensure cross-chain communication security.
Validators lock or share assets like ETH or other tokens like the protocol's native assets EIGEN or ZRO as collateral. After that, messages are sent and verified by blockchains. If a discrepancy is found, token holders can vote to reject or reject the holdings. Finally, if malicious behavior is proven, the assets held will be forfeited or reduced.
Scans, verify, veto, slash process for DVNs. Source: LayerZero Labs
Benefits of the system include increased security of cross-chain messaging, financial incentives for honest behavior, inclusion of any network that contributes by pooling assets, and flexibility with different authentication methods, he said in a blog post.
The framework is open source, allowing other teams to start their own DVN using their preferred assets. This enables application-specific DVN with customizable security parameters.
Eigen Labs explained in a blog post that previously, the security of filtering omnichannel messages relied on the network's authentication mechanisms. But now, with Eigenlayer's re-staking primitive, anyone can stake their assets to provide an extra layer of security.
The communication protocol LayerZero is a marketplace for DVN authenticators, with 35 parties currently participating, including zk-proof based groups like Polyhedra, Multi-Bridge Credentials from Hash, and Oracles like Google Cloud.
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LayerZero Labs concluded that with the adoption of this framework, the future of blockchain communication “is defined by trust, transparency and accountability where every message in the blockchain brings us closer to the world envisioned by cryptoeconomics.”
EigenLayer is currently locked in a total value of $10.8 billion; However, according to DeFillama, this figure has decreased by about 50% in the last four months.
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