LayerZero Unveils Institution-Focused Network 'Zero' as ZK Proof Goes Mainstream

The new architecture, which it's calling 'Zero', will be built on zero-knowledge proof (ZK proof) – a way of authentication that allows blockchains to verify a statement without gaining access to underlying information, preserving data privacy – according to a 10 Feb announcement.  

Although ZK proof has mainly been used by crypto-native platforms, a more mainstream adoption would allow institutions to trade onchain without revealing sensitive data.

TradFi and crypto backing

Some major financial institutions have taken an interest in LayerZero’s vision. Zero has received support from clearing giant Depository Trust & Clearing Corporation (DTCC), from Intercontinental Exchange (ICE) – the owner of the New York Stock Exchange – and Google Cloud, a related press release showed. The three firms plan to use Zero to build tokenization tools and integrate the network into some of their existing products.

Zero has also received financial backing from trading firm Citadel Securities and ARK Invest, which have invested in its native token ZRO. ARK Invest chief Cathie Wood will also join the advisory board of the blockchain, alongside ICE executive Michael Blaugrund and Caroline Butler, former head of digital assets at BNY Mellon.

In a separate announcement, stablecoin issuer Tether said it has made an investment into LayerZero. The USDT operator has made a series of investments in the past few days and announced it is adding staff to handle the increased workload.

Rollout in three zones

The blockchain is expected to go live as three variants, or ''zones'' in Q3 this year: a general Ethereum Virtual Machine (EVM) zone, a payments zone focused on privacy, and a multi-purpose trading zone. 

Zero will use LayerZero's technology to provide interoperability – allowing it to 
interact with other blockchains. Interoperability tools, such as those built by LayerZero, are crucial for the wider adoption of blockchains. Most chains are separate
ecosystems that don't interact with each other and need a tool to help users build products that can utilize different networks.