Why ZetaChain Enables Universal Apps

What Is ZetaChain?

ZetaChain is the first universal layer 1 blockchain built for chain abstraction and omnichain interoperability. With its Universal EVM, Universal Apps on ZetaChain, also known as Omnichain Smart Contracts, support any chains from Bitcoin to Ethereum and BNB Chain and beyond – all from one place. Universal Apps can manage native tokens on any chain and users can access these dApps from their chain and wallet of choice without network switching.

Key Takeaways

• ZetaChain is a Layer 1 Proof of Stake (PoS) blockchain network with a new Universal EVM for interoperability, enabling cross-chain interactions from a single point without wrapping and locking tokens or network switching for the user.

• ZetaChain’s Universal Apps, also called Omnichain Smart Contracts, are built on the chain’s Universal EVM, allowing for the creation of interoperable dApps that span multiple chains from Ethereum to Bitcoin and more all from one place of logic. 

• ZetaChain ranks in the top 10 blockchains by total active users based on data from DappRadar, with over 137M transactions and 7,900 dApp contracts deployed since its mainnet launch in February 2024.

• More than 270 developers and partners comprise the ZetaChain ecosystem, spanning several sectors, including decentralized finance, social applications, and gaming with a focus on universal accessibility.

• More than 1,000,000 users are building status and gaining access to rewards while exploring the ZetaChain ecosystem through the ZetaHub XP program.

ZetaChain is a blockchain that enables universal, omnichain apps that span multiple chains from Ethereum and Bitcoin to Cosmos and more. These universal apps can accept contract calls, messages and token transfers from any connected chain, allowing users to interact across different blockchains simultaneously. For example, with ZetaChain, a Bitcoin user can interact with a universal app to send USDC to someone on Ethereum in one step and without leaving his Bitcoin wallet. ZetaChain’s Universal EVM  execution layer abstracts transactions across supported chains, resulting in simplified fees and transaction structures and removing the hassle of manually bridging assets and managing account balances across different chains.

ZetaChain shows steep growth in network activity since the public launch of its mainnet in February 2024. According to data from the network explorer ZetaScan, over 3.5 million unique accounts have been created on the network since this time. DappRadar ranks the network among the top ten blockchain networks in terms of network activity, based on weekly active users. 

ZetaChain also launched its XP Program, which is designed to help users understand omnichain usage while offering them the opportunity to earn with a continuous stream of diverse on and off-chain rewards, beginning with a 10 million ZETA reward pool for XP users. 

Learn about ZetaChain and how to join the ZetaHub XP Program.

Deploy Once and Access All Chains

ZetaChain is a universal Proof of Stake (PoS) Layer 1 network with built-in blockchain interoperability, tackling the challenge of fragmented access and liquidity across any blockchain. It unifies diverse blockchain networks through a basket of interoperability technologies that enable the flow of resources and data between different blockchain networks in one, decentralized state system. ZetaChain is built on the Cosmos SDK, inheriting the traditional interoperability structure of the Cosmos network including the Byzantine Fault Tolerant (BFT) consensus system and offers an EVM-compatible smart contract layer for building Universal Apps.

It augments this design with its unique Chain Abstraction Framework (CAF), which handles multichain interoperability for developers who deploy Universal Apps on ZetaChain’s EVM. This synchronous environment can be called from any chain, manage native assets on any chain, and access asynchronous arbitrary messaging to call contracts on other chains. The CAF plays a key role for developers who want to build future-proof compatible apps for all users without having to deploy and manage their app infrastructure on many chains.

ZetaChain offers users and developers a universal execution layer for decentralized networks, enabling easy multichain interaction, where users can easily transact across multiple chains without needing smart contract bridges. With ZetaChain, networks can communicate with each other more efficiently and securely using more specialized protocols like its Universal EVM, Omnichain Smart Contracts, and gas abstraction. Current progress has seen networks like Bitcoin, Ethereum, and BSC integrated successfully into ZetaChain’s interoperability solution with more chains coming online as part of the ongoing ZetaChain 2.0 initiative.

As an EVM-compatible layer 1, solidity developers on other blockchain networks can deploy their applications on ZetaChain without making significant changes to their core code. Applications on ZetaChain can also easily interact with other networks natively, even those without native smart contract capabilities, like Bitcoin.

Achieving Universal Chain Abstraction

The disjoint between blockchain networks is mainly a result of the disparity in their execution environments and requirements. Every blockchain network runs on an execution environment tailored to complement the rest of the system. Part of ZetaChain’s approach to interoperability is the development of an out-of-the-box execution environment that is capable of working across any network of the past like Bitcoin or future chains and layers. It works on the idea of a Universal EVM and universal applications to power its chain abstraction vision.

ZetaChain’s Universal EVM is an extension of the Ethereum Virtual Machine with advanced built-in interoperability features, supporting existing EVM smart contracts with little or no modifications. The Universal EVM is accessible from external chains and capable of managing the states of external execution environments.

The universal EVM is built on the Chain Abstraction Framework (CAF). The CAF breaks the interchain barrier, allowing complex communication operations between the ZetaChain blockchain and any other autonomous networks. With this, ZetaChain can compute external transactions, handle cross-chain gas settlements, and enable applications that interact with several execution environments with ease.

Other key features of ZetaChain’s interoperability architecture include;

Omnichain Smart Contracts

Omnichain Smart Contracts on the ZetaChain use the ZRC-20 standard – an adaptation of the ERC-20 smart contract standard with interoperability features. Omnichain Smart Contracts, which are deployed natively on the ZetaChain network, can manage multichain liquidity and data from any connected external chains including the ability of equipping Bitcoin with smart contracts.

For developers, Omnichain Smart Contracts save time and resources required to develop and deploy applications on multiple networks. At the same time, by enabling users to manage their assets on multiple networks from a single chain, they make multichain transactions seamless for everyday blockchain users.

Hyper-Connected Nodes

ZetaChain operates a multi-node, decentralized architecture. The multichain operations are secured by nodes on the main network that monitor and process activities on external networks connected to ZetaChain. These nodes then reach consensus on them and sign off to any connected chain.

Cross-Chain Message Passing

ZetaChain has a built-in message-passing function that enables developers to easily deploy multichain communication algorithms that allow their smart contracts to interact with the states of other smart contracts on an external chain. The cross-chain message passing feature works in synergy with Omnichain Smart Contracts, hyper-connected nodes, and the Universal EVM to deliver an efficient interoperable network, where apps can abstract multi-leg cross-chain transactions. This is unlike other messaging protocols which require deployment on multiple networks, as developers only need to deploy one application on ZetaChain to achieve interoperability.

What Is the ZETA Token?

ZETA is the native token on the ZetaChain network. It powers the network’s economy and technology. ZETA serves the following purposes

Gas token: Fees for transactions on ZetaChain are paid in ZETA. ZRC-20 tokens and transactions are also charged in ZETA. 

Network security: ZETA is the primary asset of the network’s consensus layer. Validators are required to lock up a minimum amount of ZETA to operate a functional network node. ZETA holders can also contribute to building a value layer for the consensus system by delegating their assets to a validator. Validator and native nominator staking rewards are distributed in ZETA.

Interoperability system: ZETA powers interchain interactions. It is used to pay fees for outbound transactions (transactions sent to external networks). Users include a specific amount of ZETA in their transaction which is converted via the core pool to the native asset of the destination chain to pay for gas on the destination network.

Governance: ZetaChain is governed by its community. Holders of ZETA make up the ZetaChain DAO and decide on the direction of the project by voting on improvement proposals. The community’s jurisdiction includes financial, administrative, and technological development proposals.

Tokenomics

The total supply of ZETA is 2.1 billion tokens, and will be distributed based on the below breakdown.

ZETA can be traded on decentralized exchanges on Ethereum (Uniswap) and BSC (PancakeSwap) and centralized exchanges like Coinbase, Upbit, MEXC, Kraken and Gate exchange. See active trading pairs for ZETA.

The ZetaChain Ecosystem

The ZetaChain ecosystem comprises more than 270 developers and partners with over 7,900 dApp contracts deployed according to data from DappRadar. Applications in the ecosystem span several sectors, including decentralized finance, social applications, and decentralized gaming. 

Here are some of the thriving sectors of the ZetaChain ecosystem

DeFi Primitives

ZetaChain is designed for multichain interaction with the aim of solving the liquidity fragmentation issues that plague decentralized finance applications. According to DefiLlama, DeFi applications in the ZetaChain ecosystem have grown significantly with over $2 million worth of crypto assets locked across DeFi smart contracts on the network. 

A leading application in this sector is Eddy Finance.

Eddy Finance is a decentralized exchange on the ZetaChain network. It is an AMM-powered DEX with advanced multichain features. According to Eddy Finance, it enables users to trade their bitcoin on the platform natively and also connects several chains and their assets, utilizing the Omnichain Smart Contract feature on ZetaChain. Eddy Finance pools consist of tokens deployed natively on other networks. Eddy Finance also operates a bridging facility that enables users to easily move assets between several networks in one click.

According to DefiLlama, other DeFi applications on ZetaChain include Zearn Protocol, IziSwap, and Skate Fi.

Social Apps

Developers on ZetaChain also leverage the network to build applications that enable people to connect with each other in a decentralized manner. A leading application in this sector is SugarFi. SugarFi provides a platform where people can interact with others, meet like minds, and grow personal relationships. SugarFi is a ‘social to earn’ application. It offers financial opportunities in addition to its primary goal of uniting people.

SugarFi operates a key system that allows users to easily monetize their online engagement, where user keys grow in value depending on demand and unlock access to user-gated content. Users on SugarFi can send gifts to friends directly through the platform. According to SugarFi, advanced features like AI-powered services, AR/VR communications, and video chats will also be added to the platform in the future.

Gaming Applications

ZetaChain also supports decentralized gaming applications, enabling the deployment of contracts that manage assets in immersive decentralized games. Gaming applications on the networks also utilize the interoperability feature to build multichain access for games and allow users to fuel their gameplay with assets from external chains. An example of such an application is Upcade.

Upcade is a multichain gaming platform with support for the Bitcoin network. It is a gaming hub featuring several role-playing and MMORPG games. Gamers compete in several games, play tournaments, and collect their Proof of Game to climb the leaderboard. Gamers also stand a chance of earning significantly through their participation in the game. 

These applications have already submitted an RFP to be included in ZetaChain’s ZetaHub XP program. Now, let’s take a look at how you can start building status and access rewards by exploring the ZetaChain ecosystem.

ZetaHub: The Gateway to ZetaChain’s Universal App Ecosystem

As of June 2024, ZetaHub has crossed over 1 million enrolled XP members on ZetaHub. ZetaHub is the gateway to ZetaChain’s Universal App ecosystem, which comprises over 260 Universal Apps across infrastructure, DeFi, SocialFi, Gaming, and more. Users can earn XP Status and Rewards through ZetaChain’s universal loyalty system, where users can build Status by performing onchain activities and testing new apps, which in turns makes them eligible for rewards. 

According to the project, the earned XP can qualify participants for certain perks, live events, and other rewards.

Application builders can also tap into the XP data layer to understand omnichain activity and reward users based on their key growth priorities. Based on information from the project, featured apps on ZetaHub experience over 200,000 monthly active users on average since the launch of the ZetaChain mainnet. 

Now, let’s look at how you can participate in the ZetaHub XP program.

How to Earn Rewards on ZetaHub

1. Visit the ZetaHub platform.

2. Navigate to the XP section.

3. Click Connect Wallet from the top right corner and select your wallet provide provider to continue.

4. Click Enroll and Earn 1,000XP to enroll in the program.

5. Scroll through the dashboard to see activities. Complete each activity to earn the allocated points. 

ZetaChain 2.0 Upgrades

As part of the proposed ZetaChain 2.0 upgrade, the project has announced several new introductions and improvements to existing network features. These upgrades are focused on upscaling the Chain Abstraction Framework to optimize the interoperability provision and general network operations.

Cross-Chain Messaging

With cross-chain messaging, dApps can abstract multi-leg cross-chain transactions in tandem with native asset movements and interactions. This means a contract on ZetaChain could be called by a user on Ethereum and also enact external contract calls on Bitcoin and more legs after, all in just one step for the user. This works by merging ZRC-20 with the messaging capabilities of Omnichain Smart Contracts. 

Omnichain Accounts

Omichain accounts are multi-network ZetaChain accounts capable of managing native assets and smart contracts. On implementation, it will enable network users and developers to interact with contracts, move assets, and execute DeFi transactions on different protocols and across different networks without repeatedly bridging between them, where users never have to switch networks or sign additional transactions. Omichain Accounts holds relevance in several use cases, however, DeFi applications could benefit more due to the ease it offers in financial applications.

Universal Proof of Stake

The Universal Proof of Stake function will enable the security layer of the ZetaChain network to accept other tokens. ZRC-20 adaptations of Bitcoin, Ethereum, and BNB can be locked on the consensus layer of the network. The Universal PoS feature is meant to improve the value of the consensus layer and also the security. According to the proposal, the network could benefit from exposure to several communities, such as miners on the Bitcoin network and validators on the Ethereum network. It also discusses the possibility of liquid staking for native assets of supported networks.

Bitcoin Compatibility

ZetaChain aims to create a stable connection with the Bitcoin network. However, to make this possible, the network must support vital Bitcoin protocols and scripts. Part of the proposed upgrades is a deployment that optimizes the network for key Bitcoin scripts like Taproot and Bitcoin hashing algorithms.   

Additional Upgrades

Apart from the major upgrades discussed above, other significant upgrades to the network include;

• A rate limiter that regulated the flow of ZRC-20 tokens and the ZETA coin

• Modifications to Cosmos SDK modules to improve integration with the EVM

• Modifications to the EVM module and the ZetaChain EVM (zEVM) to improve the compatibility of cross-chain transactions.

Learn more about the ZetaChain 2.0 upgrade proposal.

Final Thoughts

ZetaChain hopes to unite blockchain networks. A mission that is becoming increasingly necessary, thanks to the proliferation of blockchain networks and subsequent fragmentation of liquidity. According to data from DefiLlama, the DeFi sector of blockchain networks houses over $95 billion worth of crypto assets. However, this total figure is split across many networks. A good percentage is locked away since they cannot be used by protocols from other networks. The reduction in capital efficiency across the blockchain network will see a rapid improvement if the right interoperability solution is realized.

ZetaChain is focused on developing this solution and has made significant progress in this area. It has already achieved a functional connection with several networks and the ecosystem is working on growing this list. As the project progresses, we could see even more efficient approaches to blockchain interoperability emerge. The ZetaChain 2.0 upgrade could open the door to more adoption of the network and its ideas, further positioning ZetaChain as a leader in the blockchain interoperability and chain abstraction space. Applications in the ZetaChain ecosystem will also hope to leverage these facilities to develop applications that positively employ universal accessibility and position themselves as first-movers in this area.

Having said this, it is important to understand the review and what it means for you as an investor and a blockchain enthusiast. Also, note that this review is only for educational purposes and should not be taken as financial advice. Featured projects are not endorsed.