Why we invested in LayerZero, the omnichain interoperability protocol for web3
The proliferation of proprietary blockchains has created a need for secure connections that facilitate communication between the different networks.
LayerZero has the solution – an omnichain interoperability protocol that enables direct transactions across all chains. Bridging between chains can be an expensive and vulnerable process in which applications are forced to depend on a third party consensus mechanism to secure their messaging in perpetuity. Should this messaging protocol change its upgradeable contracts, underlying consensus mechanism, or get hacked the application stands to lose everything. LayerZero puts control back in the hands of the application with its immutable set of smart contracts that puts all security hyperparameters back in the hands of the party with most to lose: the application itself. Applications can now choose who performs off chain actions and can itself run one of the components eliminating the chance of an offchain attack.
Samsung Next invested in LayerZero because it is building the premier omnichain interoperability protocol – enabling cross-chain applications with a low-level communication primitive. We joined in the $120 million Series B round along with, a16z crypto, Sequoia Capital, BOND, Circle, Christie’s, and others.
LayerZero solves an acute pain point for web3, supporting mainstream applications that gives users the ability to move seamlessly across blockchains. We believe the future will be multi-chain, and LayerZero’s omnichain interoperability protocol enables users to send tokens or any kind of message in a single transaction across applications that live on various chains. This removes a major blockchain constraint in which each chain is isolated, limiting the ability of users to move liquidity and state between walled ecosystems.
Another reason for our investment in LayerZero is that it’s led by exceptional founders, with a proven track record and the ability to work together cohesively. The team includes Bryan Pellegrino, Ryan Zarick, and Caleb Banister. Bryan is a two-time founder in online fantasy sports and predictive AI. Ryan was a founding CTO with Bryan at BuzzDraft, the sports startup, and has been a three-time co-founder with Bryan on the sports startup and has been a three-time co-founder with Caleb in both AI and blockchain-related startups.
LayerZero’s business model includes generating revenue from transfer fees and, potentially, from the development of proprietary decentralized exchanges or other financial instruments. The first application built by LayerZero is Stargate, a native token bridge.
Implementing any type of cross-chain integration can be time-consuming and technically complex. LayerZero has a strong roadmap and an experienced team that prioritizes security, audits, and reviews. We believe that LayerZero’s cross-chain architecture will be at the center of the multi-chain, multi-layer web3 world.
Sam Campbell is an Investor at Samsung Next. Samsung Next's investment strategy is limited to its own views and does not reflect the vision or strategy of any other Samsung business unit, including, but not limited to, Samsung Electronics.
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