Blockdaemon, renowned for its institutional-grade blockchain infrastructure expertise, has announced an exciting new collaboration with LayerZero Labs, a trailblazer in omnichain interoperability messaging protocol. Through this noteworthy partnership, Blockdaemon plans to incorporate LayerZero into its self-custodial wallet, solidifying its commitment to extending the reach of decentralized finance (DeFi) to institutions.
Blockdaemon is taking pivotal steps towards enhancing the cross-chain capabilities of its Multi-Party Computation (MPC)-based self-custodial wallet designed chiefly for institutions. The MPC wallet will soon feature an integrated LayerZero, one of the earliest cross-chain protocols to enjoy this level of integration. This move will provide institutional investors a secure and reliable pathway to explore the possibilities offered by blockchain interoperability, which is crucial for the progress of DeFi. Introduced in April 2023, the self-custodial wallet leverages the reliability of a Threshold Security Module (TSM), known as Builder Vault. In use since 2018, the Builder Vault is trusted globally by large institutions such as OpenSea and Cybavo, a Circle Company, for digit asset security.
Furthering the integration of LayerZero into its wallet, Blockdaemon takes a significant step by developing and operating a Decentralized Verifier Network (DVN) to validate and decentralize LayerZero's protocol. Blockdaemon's node-as-a-service platform, already employed by LayerZero, will be instrumental in propelling this venture; the DVN operation emerges as an advanced phase of the partnership following the launch of Version 2 of LayerZero.
LayerZero aims to provide software developers the flexibility to construct their own Security Stack using DVNs, which are off-chain networks of verifiers, adept at verifying the integrity of messages sent across the network. A new Blockdaemon Oracle will launch concurrently with the Polyhedras zkLightClient, the Google Cloud Oracle, and other customised DVNs managed by teams such as Nethermind, Gitcoin, and Animoca Brands. Utilising both required and optional DVNs, omnichain applications (OApps) can further enhance message verification.
Ryan Zarick, the CTO and Co-Founder of LayerZero Labs, revealed their goal to "...develop cross-chain infrastructure and interoperability technology that is always immutable, permissionless, and censorship-resistant." He praised Blockdaemon's move to integrate the LayerZero protocol in their MPC wallet as indicative of the enterprise-grade utility of the LayerZero protocol. He also noted how this decision will increase the range of DVNs software developers can enlist for their Security Stack.
Konstantin Richter, CEO and Founder of Blockdaemon, echoed his company's commitment to fortify blockchains and expand applications on the network, helping institutions harness blockchain's potential securely. Richter highlighted how the integration of Blockdaemon's Wallet with LayerZero and the development of its own DVN, called Blockdaemon Oracle, could establish a secure and scalable entry point to liquidity pools while allowing institutions full control of their assets.
These initiatives aim to give organizations privileged access to a self-custodial wallet with proven, patented MPC security that can be installed on-premise. This would facilitate smooth access to on-chain, cross-chain swaps, and allow users to tap into the offerings of DeFi. Blockdaemon and LayerZero Labs are investing substantial effort into expanding and solidifying this partnership to incorporate more prominent organizations and establish trusted entry points and routes for institutions in the industry.