Introduction to the New Framework

The team behind Ethereum's re-staking protocol, EigenLayer, and LayerZero, a cross-chain messaging protocol, have joined forces.

LayerZero Labs announced its collaboration with Eigen Labs. Together, they introduced a groundbreaking framework known as CryptoEconomic Decentralized Verifier Networks (DVNs). This system aims to bring a new level of security to cross-chain communication.

Enhancing Cross-Chain Security

The DVN system is not just a technical marvel; it integrates financial incentives for enhanced security. By addressing prevalent issues such as the lack of economic incentives for trust and limited security participation, DVNs promise a more robust framework.

They leverage crypto economic security, where verifiers stake assets that can be slashed if they falter, ensuring stringent checks.

Mechanisms and Benefits

The system employs four primary mechanisms to secure cross-chain communications. Verifiers stake assets like EIGEN or ZRO tokens as collateral. Messages are carefully sent and verified across blockchains.

In case of discrepancies, token holders can vote on the fate of staked assets. If malicious behavior is confirmed, the staked assets are slashed.

• The benefits include:
• Increased security.
• Financial incentives for honest behavior.
• Flexibility with various verification methods.

"The framework is open source, which allows other teams to launch their DVNs using their preferred assets to stake."

Open Source and Interoperability

The framework's open-source nature allows for the launch of application-specific DVNs, which can be customized with specific security parameters.

Eigen Labs highlighted that previous security measures were limited to network verification mechanisms. With EigenLayer's primitive re-staking, anyone can stake their assets to bolster security.

The Future of Blockchain Communication

LayerZero serves as a marketplace for DVN verifiers, with 35 entities currently on board. These include zk-proof-based teams like Polyhedra, multi-bridge attestations from Hashi, and oracles like Google Cloud.

As the framework gains traction, LayerZero Labs envisions a future where blockchain communication is underpinned by trust, transparency, and accountability.

EigenLayer's total locked value is $10.8 billion, although it has declined over the last four months.