Why the hype and how to get involved

In the tumultuous world of cryptocurrencies, while most digital assets have suffered severe downturns, LayerZero seems to have emerged as one of the most popular projects in the bear market.

This blockchain infrastructure protocol’s latest funding round included several high-profile venture capitalists, including Andreessen Horowitz, Christie’s, Sequoia Capital and Samsung Next. The round, which raised $120 million in Series B funding at a $3 billion valuation, was three times larger than the previous round.

Moreover, even investors have been intrigued by LayerZero’s airdrops. This has left many scrambling to find out how they can get involved in the project and share in its future success.

Indeed, these achievements have made LayerZero a prominent success story amid a lackluster cryptocurrency market, showing that investors remain keen on infrastructure-focused crypto projects.

What is LayerZero

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

So, what exactly is LayerZero?

LayerZero is a platform for communication between blockchains. It can help transfer information between different blockchains by acting as a translator.

In the same way that people need a translator to communicate with someone who speaks another language, blockchains with different technical systems have difficulty communicating directly. This is where LayerZero comes in, acting as a translator to enable clear communication between blockchains. Users can specify what information they want to send and to which blockchain, then LayerZero is responsible for converting and transferring the information between the two blockchains.

For example, if a user wants to send a message from Blockchain A to Blockchain B, the message is first sent to LayerZero. LayerZero acts as an intermediary and forwards the message to the people responsible for performing the task. They 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 do not need to worry about the technical details of the two blockchains; they just need to specify the content and recipient, and LayerZero takes care of the rest.

Why LayerZero?

LayerZero is designed to address the limitations of existing interoperability protocols that rely on trusted intermediaries or managers. The benefits of LayerZero include

Fraudulent 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 dishonest administrators.

Easy development across chains

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

Built-in asset support

With LayerZero, users can send their cryptocurrencies directly between different blockchains without converting them to another type of token. This makes it easier to use different blockchains and reduces costs.

Better liquidity

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

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

As the LayerZero team continues to optimize and improve the protocol, expand its application scenarios, deepen its cooperation with common public chains, and improve its security defense capabilities, LayerZero can play a crucial role as a cornerstone of cross-chain technology.

How to get the airdrop

Although LayerZero has yet to make an official announcement, many are preparing for the potential upcoming airdrop. However, there are actions that people can take to increase the likelihood of receiving airdrop tokens.

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

1. Actively participate in the official LayerZero Discord community by posting regularly and interacting with other users. LayerZero may award multiple airdrop tokens based on community participation.
2. Increase engagement on Twitter by retweeting and commenting on LayerZero’s tweets more often. LayerZero can award multiple airdrop tokens based on social influence on Twitter.
3. Trade more LayerZero related smart contracts to increase your chances of receiving airdrop tokens. LayerZero may allocate airdrop tokens based on trade volume.
4. Use the LayerZero Testnet Bridge to perform multiple Testnet transactions. LayerZero may allocate multiple airdrop tokens based on the usage frequency of the testnet.

In summary, even though LayerZero has not officially announced the airdrop schedule, community members can still proactively participate in the community, trade on the platform, and show their support for the LayerZero project to increase their chances of receiving airdrop rewards.

Extracting insights from data

So what insights can we glean from the data?

User insight: Increasing interest in LayerZero’s technology

The growing number of unique users on LayerZero, especially since March, indicates a growing interest in LayerZero’s technology. According to Footprint AnalyticsOn April 20, there are over 866 thousand unique users on LayerZero. This is due to the sharp increase in unique users since the end of March, likely driven by potential airdrop events promoting the technology and encouraging more users to use it.

LayerZero has positioned itself as a blockchain infrastructure provider with excellent transaction speed and negligible fees. As a result, it is becoming an attractive option for developers and companies looking to build decentralized applications that can handle large amounts of transactions and users.

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

Transaction Insights: Challenges and Opportunities Amidst a Growing User Base

The increase in the number of transactions on LayerZero during March was likely due to the successful marketing campaigns aimed at promoting the platform’s features and benefits

According to Footprint Analytics, 38.70% of all transactions were made by users who completed only one transaction. This indicates that the potential airdrop events have attracted many new users to try the LayerZero protocol. However, as users become more familiar with the LayerZero protocol and the number of transactions increases, the number of participating users decreases.

Only a small percentage of users (3.58%) perform high-frequency transactions, while the majority simply complete 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 volumes on the platform. This will require LayerZero to continue to improve its technology, enrich its use cases and increase user stickiness.

Blockchain Insights: Layer2 Blockchains have good performance

Arbitration stands out with the highest number of unique users, followed by Optimism and Polygon, as the LayerZero protocol expands across different networks.

There are currently projects integrating the LayerZero protocol, including Stargate, Hashflow, Radiant Capital, SushiSwap, and Rage Trade, among others in cross-chain trading, lending, liquidity mining, and NFT. These projects can use LayerZero’s protocol to enable the transfer of assets, invocation of contracts, and messages that pass across different chains. LayerZero provides specialized tools and services to users on high-performance networks, contributing to further adoption and use of the technology.

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

This piece is contributed by Footprint Analytics society.

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