LayerZero Labs Launches Colortrace, Onchain Attribution Solution
ColorTrace is LayerZero’s resolution to issues with Coloured Cash, together with the quantity of storage required to paint digital belongings.
Cross-chain communication protocol LayerZero has launched ColorTrace, a price attribution resolution that facilitates truthful monitoring. The answer simply attributes tokens to the entity that minted the token, permitting for simple verification of the token’s origin and making associated yield assortment seamless. Along with income distribution, ColorTrace can even assist with monitoring in alliance packages, referral hyperlinks, and different real-world makes use of.
Coloured Cash is a technique of making distinctions amongst a bunch of digital belongings by attributing colours to particular cash. Though every coloured coin nonetheless features the identical approach and is as usable or redeemable as non-colored cash, the cash carry markings that point out particulars of their historical past, together with former holders and authentic minters.
ColorTrace solves a main downside with the unique Coloured Coin algorithm. This algorithm used a lossless layer of metadata operate atop the Bitcoin ledger. That is equal to a repeatedly rising ledger record of each tackle that has ever coloured a token. This record is actually infinitely sized, growing with each coloring performed on the community. Unsurprisingly, this resolution is just not sustainable due to the storage and computation calls for required to keep up the record. This additionally makes correct onchain worth attribution tough.
LayerZero’s ColorTrace Options for Coloured Cash
The ColorTrace resolution from LayerZero offers a couple of options that simplify the issue of figuring out tokens and indicating provenance. Firstly, it promotes single-chain coloring, which atomically burns and mints tokens to make sure that a pockets solely holds tokens of a single shade. One other elegant resolution is the switch of coloured tokens between blockchains. ColorTrace facilitates secure token transfers throughout networks, guaranteeing that there is no such thing as a mixup throughout the switch course of. The ColorTrace design additionally promotes effectivity, making it straightforward to establish a coloured token with out combing by way of a sophisticated monitoring system. Moreover, it ensures that the full quantity and worth of tokens stay constant throughout all networks and transactions.
ColorTrace already features as an answer that ensures equitable value-sharing of USDV, a brand new community-driven stablecoin launched by the Verified USD Basis. By way of ColorTrace, USDV facilitates clear reward distribution amongst verified minters. This fashion, the chance of disputes arising from mentioned distribution is eradicated.
LayerZero wstETH Cross-Chain Transfers
Final month, LayerZero introduced a brand new function that enables customers to switch wrapped staked Ethereum (wstETH) throughout a number of blockchains. Now out there on the Ethereum, BNB Chain, Scroll, and Avalanche chains, wstETH transfers are set to extend accessibility of staked tokens. This opens up wstETH for extra distinctive alternatives on different blockchains and improves decentralized finance (DeFi).
wstETH is a wrapped token representing staked Ethereum (stETH) within the Lido Finance protocol. Customers on Lido stake ETH and obtain stETH in return, which represents the worth of the belongings staked.
In April, LayerZero Labs raised $120 million in a Collection B funding spherical at a $3 billion valuation. This tripled the corporate’s valuation from the $1 billion valuation in March 2022 when it raised $135 million in a Collection A extension spherical.
