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Interoperability Infighting: LayerZero's Bridge Dispute Reveals the Decentralised Struggle for Blockchain Approval

Jan 25, 2024

Interoperability Infighting: LayerZero's Bridge Dispute Reveals the Decentralised Struggle for Blockchain Approval
Interoperability Infighting: LayerZero's Bridge Dispute Reveals the Decentralised Struggle for Blockchain Approval
Interoperability Infighting: LayerZero's Bridge Dispute Reveals the Decentralised Struggle for Blockchain Approval

In a recent development within the blockchain space, LayerZero, a leading firm specialising in blockchain interoperability infrastructure, faced controversy when it unilaterally deployed a crypto bridge for Lido's staked ETH (stETH) token without waiting for official endorsement from Lido DAO, the protocol's governing community. While LayerZero's move was technically permissible, it drew criticism from some Lido DAO members who felt that the company was attempting to present itself as an official partner without approval. This situation highlights the importance of cross-chain interoperability as more blockchains emerge, leading to competition among bridge protocols for endorsements from prominent projects like Lido. In a temperature-check poll, Lido DAO members expressed their disapproval of LayerZero's bridge, with 81% of votes favouring a rival bridge proposal from competitors Axelar and Wormhole, pending a formal vote. This development underscores the challenges and competition in the rapidly evolving blockchain interoperability landscape.