Chainlink CCIP vs LayerZero: DON design, ARM network and security models
Thread305 words
Compares CCIP (committing and executing DONs plus an Active Risk Management layer) with LayerZero's oracle plus relayer model. Argues CCIP is less customizable but more decentralized and secure by default, and weighs this against PoS app-chain interop like Axelar.
Key claims
CCIP uses two DONs (commit and execute) where LayerZero uses one oracle and one relayer
CCIP is more secure by default but less customizable
Chain-based interop may offer more tangible crypto-economic security than DONs
Interoperability is key and we need secure solutions! 🌐
Otherwise liquidity and users will be fragmented across a number of ecosystems, being limited to activity within siloed networks! ⚠️
And today, I want to drop a few thoughts on Chainlink CCIP vs. LayerZero 🔍
Short 🧵
If you need a refresher on Chainlink's CCIP, check my thread below! 👇
x.com/zerokn0wledge_/status/1706992969985994772
And if you want to know how LayerZero works, have a look here! 👇
x.com/zerokn0wledge_/status/1648038651178409984
But let's get to the comparison! So CCIP is actually quite similar to LayerZero.
Just that instead of having a DON (decentralized oracle network) and a relayer (that can basically be anything), CCIP uses two DONs (committing DON and executing DON).
Additionally, CCIP has an added security layer in the form of the Active Risk Management network.
With LayerZero’s sharded security approach, I think the security guarantees very much come down to the design of the app-specific implementations we will see of this in the future.
Generally though, while being less customizable, it seems like CCIP is the more decentralized and (as things stand) more secure system kind of by default.
Whether one prefers this over a the approach where an actual blockchain (app-chain or rollup) takes the place of the interop protocol (Axelar, Synapse), is another question.
I think the crypto-economic security guarantees that come with these (ultimately) PoS based solutions are pretty sound and maybe more tangible than in these DON-based solutions (however there could also be $LINK staking based economic security on Chainlink’s DONs for example).
But it will definitely be interesting to see what gains more traction. I think both approaches are quite generalizable, which should help them scale well.
If you want to read more about interop & LayerZero, also check out my thread below where i compare the LayerZero and Axelar security models!
x.com/zerokn0wledge_/status/1677014596278968320
What came next · since 14 Oct 2023
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