With the rise of blockchain technology, users can experience improved security, transparency, and trust. This has enhanced traceability of data across various business networks.
Blockchain has allowed for cross-chain transactions and smart contracts. However, this multi-chain ecosystem without interoperability between the blockchains hinders mass adoption of the technology.
To address this issue, there are multiple interoperability solutions available in the market. But the majority of them are applicable to specific blockchains.
ZetaChain supports real cross-blockchain transactions, message delivery, and smart contract functionality. It facilitates inter-blockchain capability without forcing existing blockchains to adopt new standards.
In this article, we will look into the basics of ZetaChain, its origin and history, features, and benefits. We will also learn how ZetaChain works and whether to make investment in ZETA tokens or not.
What is ZetaChain?
ZetaChain is a Layer 1 blockchain that uses Cosmos SDK and the Tendermint consensus engine and operates on a proof-of-stake (PoS) mechanism, which enables cross-chain data exchanges and smart contract executions.
ZetaChain is also termed as a universal blockchain due to its omnichain interoperability.
ZetaChain is a blockchain that connects with existing blockchains, from mainnet layers like Ethereum to non-smart contract chains such as Bitcoin and Dogecoin.
Users in ZetaChain can tap into multiple liquidity sources across blockchains. There is no need for wrapped assets, centralized bridges, or increased interdependency risks.
Origin of ZetaChain
In 2021, ZetaChain was founded by Ankur Nandwani, Punruo Wu, and Brandon Truong, with a team of around 150 contributors, which includes former employees of various blockchain projects like 0x, Cosmos, Coinbase, and THORchain.
ZetaChain was introduced in the crypto market with an aim to develop a blockchain platform where users can access all of their assets and data from one wallet on a single platform for blockchain interoperability.
ZetaChain in 2023 raised $27 million in venture capital funding with the help of its innovative concept of omnichain smart contracts and launched its mainnet on February 1, 2024.
Key Features of ZetaChain
ZetaChain has several features that distinguish it from other blockchain networks. Here are some:
Omnichain Smart Contracts
ZetaChain provides its users with universal smart contracts and messaging between any blockchain. It streamlines cross-chain development by orchestrating complex multi-chain actions and accessing liquidity across different networks.
ZetaChain provides this omnichain smart contracts functionality by implementing ZRC-20, which is similar to the ERC-20 standard used on the Ethereum blockchain. However, unlike ERC-20, ZetaChain’s ZRC-20 can support smart functionality for assets based on non-smart chains like Bitcoin and Dogecoin.
Native Asset Management
ZetaChain offers a type of blockchain platform that helps users to manage their crypto assets like BTC, ETH, DOGE, and others, directly through the platform. It prevents the need for wrapped tokens or custodial bridges that enhance the security of the platform.
Unified Accounts
Using ZetaChain, users can interact with a single wallet address to access assets and services across multiple blockchains. This feature of ZetaChain simplifies user experience and also makes cross-chain decentralized application (dApp) interaction more simplified.
Hyper-Connected Nodes
ZetaChain uses a proof-of-stake consensus mechanism with special nodes. These hyper-connected nodes are the primary guardians of cross-chain security that continuously monitor cross-chain communication and transactions across a multi-chain setup. It also helps to address any security errors that might occur during cross-chain exchange.
Cross-Chain Messaging
ZetaChain also provides its users with a cross-chain messaging system. This system helps users to pass data across different blockchain networks. This cross-chain messaging system is different from traditional centralized bridges, which are vulnerable to threats. Hence, it provides a secure decentralized platform to send data between multiple blockchains.
Solutions Offered By ZetaChain
ZetaChain introduced several innovative solutions to the current blockchain landscape. Some of its key offerings are:
Expanding DeFi Possibilities
Users can engage in DeFi projects without any intermediary due to ZetaChain’s incorporation of smart contracts in Bitcoin.
Effortless Integration of Multiple Chains
Through ZetaChain, various DeFi projects can work on different blockchains within a single ecosystem. DEXs, stablecoins, and lending apps are able to access pooled liquidity and grow efficiently.
Multi-Chain Blockchain NFTs
ZetaChain empowers users to design and own NFTs or assets from multiple blockchains and facilitates cross-chain participation for creators and collectors.
Institutional-Grade Infrastructure
Large-scale blockchain solutions are now more accessible because of ZetaChain’s decentralized network. The validators provide a secure environment that meets institutional-grade standards.
ZETA Token and its Utility
ZETA is the native currency of ZetaChain. Currently, it is trading at $0.4008 with a market cap of $293.93 million. It has a circulating supply of 731.64 million tokens from a total supply of 2.1 billion tokens.
ZETA token is a multi-chain utility token that has various utilities for ZetaChain and its cross-chain infrastructure. Given below are some basic utilities of ZETA tokens:
- ZETA token serves as the governance token of ZetaChain, wherein holders can vote on important decisions affecting the protocol.
- The token is also used in the platform’s core crypto pools to provide liquidity and to reward liquidity providers (LPs).
- ZETA tokens are used to pay block rewards, gas fees, and also for cross-chain transactions.
- By staking a ZETA token, it secures delegated proof-of-stake (DPoS) of the ZetaChain consensus where validators participate.
- ZETA token also ensures fair and efficient use of blockchain resources such as computing and storage.
Buy or Not to Buy Zeta Token?
Investment in crypto assets is based on various factors through which an investor can decide on whether to buy a ZETA token or not.
- ZetaChain has the ability to achieve mass adoption because it is believed to be the first platform that provides cross-chain communication across both smart and non-smart contracts.
- There is an increase in decentralized applications development that may increase the need for Omnichain features provided by ZetaChain.
- ZetaChain has enabled smart contract functionality for Bitcoin and Dogecoin, having more than 100 million users. Hence, there is a high possibility that these users will use ZetaChain for their smooth functioning. This will raise the demand for ZETA tokens.
- ZetaChain is also supporting gaming projects and providing large scale blockchain solutions for institutional use.
Along with positive factors that suggest buying a ZETA token for long-term investment. However, there are a few factors that may impact its demand and that include its declining price since its launch.
Also Read: Top Layer 1 Cryptocurrency to Invest in 2025
Conclusion
ZetaChain is a universal blockchain that provides a unique solution by providing cross-chain interoperability across smart and non-smart contract blockchains.
ZetaChain’s omnichain capabilities and other features pave the way for broader blockchain adoption and make decentralized applications (dApps) more efficient and accessible.
Its applications introduce far-reaching chain abstraction capabilities. It can connect to any blockchain, from Ethereum and Cosmos to Bitcoin and beyond, enabling unified liquidity, user experience, and data all from a single place.
