- EigenLayer and LayerZero introduced a new framework for secure cross-chain communication
- The system utilizes crypto-economic incentives and token collateral (ETH, EIGEN, ZRO)
- DVN increases security by allowing any network to participate in verification via stakes
EigenLayer and LayerZero Labs announced a new “Cryptoeconomic Decentralized Verifier Networks” (DVN) framework that will provide enhanced security for cross-chain messaging.
The framework combines technical verification and financial motivations, offering a solution to several problems such as lack of economic motivation for trust and limited security participation.
How the DVN Works
The DVN system is based on a crypto-economic model where verifiers block or put their assets, such as ETH or EIGEN and ZRO tokens, as collateral. In the event of errors or malicious behavior, their assets can be “put away” – that is, confiscated. The basic process includes message verification via blockchains, using “stake”, “verify”, “veto”, and “slash” mechanisms to drive verification and to sanction unscrupulous participants.
Eigen Labs explained:
“The security of verifying omnichannel messages was solely based on the network’s verification mechanisms. But now, with Eigenlayer’s re-staking primitive, anyone can stake their assets to provide an extra layer of security.”
DVN benefits include:
- Enhanced security for cross-chain messages
- Financial motivation for participants to behave honestly
- Flexibility in the choice of assets to pledge
- Ability to create application-specific DVNs with customized security parameters
In addition, open source allows other teams to run their own DVNs customized to their requirements.
The system relies on EigenLayer restacking, which allows any user to put their own assets to increase security. Verifier market participants already include 35 organizations, including ZK teams, Polyhedra, multi-bridge attestations from Hashi and oracles such as Google Cloud.
LayerZero Labs concluded that:
“As this framework is adopted, the future of blockchain communication will be defined by trust, transparency, and accountability, bringing us closer to a world where cryptoeconomics secure every message across blockchains.”
Conclusion
Another partnership aimed at providing improved, more efficient, and secure blockchain infrastructure, of which we are now seeing more and more.
This is especially true as news of security incidents, though not always related to blockchain technology itself, is on the rise.
We’ll see how this partnership plays out, and how big a contribution to Web3 security it will make.
