LayerZero Labs, the company behind LayerZero protocol, was co-founded by Bryan Pellegrino, Ryan Zarick, and Caleb Banister in 2021. LayerZero has also attracted some of the most prominent investors in the crypto space, such as a16z, Sequoia, Paypal Ventures, Polygon, Coinbase Ventures, Binance Labs, DeFiance Capital, Spartan Group, Sino Global Capital, Multicoin Capital and more. The company raised $135 million in a Series B round in March 2022 and another Series B of $120 million in April 2023.

LayerZero distinguishes itself from other interoperability solutions in several ways: Ultra Light Nodes (ULNs): LayerZero uses on-chain ULNs, which are smart contracts that run on each blockchain and act as endpoints for cross-chain communication. ULNs verify the validity of transactions and messages from other chains using block headers and transaction proofs, ensuring security and efficiency. Generic Messaging: LayerZero enables any type of cross-chain communication, not just asset transfers. LayerZero can support any kind of payload, such as function calls, data exchange, [governance] votes, [NFT] transfers and others. This allows developers to create omnichain applications that can leverage the features and advantages of multiple blockchains simultaneously. State Sharing: LayerZero allows applications to share state across chains, meaning that they can synchronize their data and logic without relying on centralized servers or databases. This enables applications to operate as a single entity across multiple chains, creating a seamless user experience and reducing complexity. Instant Finality: LayerZero guarantees instant finality for cross-chain transactions, meaning that they are confirmed as soon as they are included in a [block] on the source chain. This eliminates the need for waiting periods or confirmations on the destination chain, improving speed and usability.