Interoperability Thesis

DUAW...bNf8
2 Mar 2024
24


At the moment we've got dozens of L1s and L2s. They're all separated, leading to fragmented liquidity. This makes it harder for developers to decide where to build. Ethereum is the most secure, but it has less upside potential & is expensive for users. Solana is cheap but has quite a lot of inflation etc.

Solution? LayerZero. With LayerZero it doesn't matter which chain you choose, you build on L0, which overshadows every other chain. It allows smart contracts written in different languages and running on other chains to communicate with each other making crypto worthy of the name 'web3'.

The beta to LayerZero is, in my opinion, Wormhole. I believe Wormhole will have its place in web3 alongside but slightly behind LayerZero, like Solana to Ethereum. It also covers more niche chains like Injective & Sui, and it'll probably dominate the Solana scene (Solana backers).

LayerZero & Wormhole will be the web of web3, but there's something needed to make blockchain useful in real life (e.g.: weather reports). Something that integrates data from real life (off-chain) to blockchains (on-chain), and that's going to be Chainlink. It's the leading interoperability protocol, ranking in the top 15 on CMC. They're working with many institutions like the FED, for Swift.

LayerZero + Wormhole will be for crypto natives, while Chainlink will be for institutions and normies (without them noticing). Holding these three will put you in a perfect position to capture any and all benefits of the interoperability narrative, and it WILL come since it's the most important revolution in crypto since Ethereum.

BTC -> Decentralized Money
Ethereum -> Decentralized Finance
LayerZero -> Decentralized Internet

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