Can the ZK cross-chain project Union challenge the dominance of LayerZero?

Written by: Haotian

Recently, I noticed a cross-chain interoperability project @union_build, a Layer-1 project centered on ZK interoperability, aiming to disrupt the current cross-chain market landscape dominated by @LayerZero_Core. The question arises, what distinguishes it from other cross-chain interoperability projects, and what are its highlights? Will it bring new opportunities to the ZK infra track? Let me share some of my observations:

1. It is undeniable that the market demand for cross-chain interoperability is growing rapidly, but existing solutions each have their shortcomings. LayerZero mainly covers the EVM ecosystem and once led the trend of cross-chain popularity based on light node verification paths. Wormhole relies on a multi-signature security committee to ensure cross-chain safety, while Axelar relies on a network of validators to handle cross-chain messages.

In contrast, Union does not rely on oracles, multi-signatures, or MPC, but chooses to directly use ZK technology to verify cross-chain consensus, providing efficient and scalable interoperability capabilities without sacrificing security.

This hierarchical interoperability protocol path built on ZK technology provides a clearer connection for Union to deeply connect different ecosystems, not limited to EVM-compatible chains, and supports various development environments including Solidity, Move, Cosmos, Solang, and BitVM. This is clearly much broader in scope than LayerZero, which focuses solely on the EVM ecosystem.

2. When many people mention ZK technology, the first thing that comes to mind is Layer 2 scaling and privacy protection (state proofs submitted from layer two to layer one). This clearly does not leverage the full potential of ZK technology, but Union's innovation lies in applying ZK technology to cross-chain interoperability, expanding the application boundaries of ZK technology.

With the support of ZK technology, it can directly verify the consensus state across different chains without relying on trusted third parties, making it more secure and efficient than traditional cross-chain bridges. Through ZK proofs, Union is able to achieve cross-chain interactions in sub-second levels, providing an almost instant transaction confirmation experience, which is a disruptive upgrade in user experience for cross-chain scenarios.

It is worth mentioning that the testnet data shows that Union has processed over 58 million cross-chain transactions, has 250,000 Dashboard users, and recently launched App v2 and opened a new testnet.

3. Union has also made significant strides in the BTCFi space. According to public information, Union has secured nine-figure TVL commitments from top LST protocols such as Bedrock, Lombard, and Solv. These LSTs will be bridged from Ethereum to Babylon through Union, making it an important asset bridge in the Bitcoin ecosystem.

Union has also launched the BTCFi Flywheel program in collaboration with Escher (LST), Tower (DEX), and SatLayer (Restaking) to create a yield ecosystem aimed at making BTC truly "yield-bearing." This strategic positioning not only responds to current market trends but also establishes a unique competitive advantage for Union within the Bitcoin ecosystem.

In fact, the Bitcoin blockchain, which inherently lacks programmability, can directly demonstrate the cross-chain application capabilities of ZK technology through ZK and other chains. Previously, several projects have also attempted to use the zkVM paradigm as an expansion solution for the Bitcoin ecosystem.

4. It should be noted that it has also received recognition from several top institutions in terms of financing, having completed a $16 million financing round, with investors including gumi Cryptos Capital, LongHash Ventures, Foresight Ventures, Borderless Capital, and others.

Looking at ecological expansion, Union is also moving quite quickly. Data shows that it has currently established over 40 strategic partnerships and attracted more than 50 cooperation projects, including leading projects such as Berachain, Polygon, Celestia, Babylon, Scroll, Sui, and Avalanche. This is quite a good achievement in the current market environment.

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If LayerZero is the representative of cross-chain interoperability 1.0 era, then Union is expected to become the pioneer of cross-chain interoperability 2.0 based on ZK technology. It is attempting to create a "highway on the chain" that connects various homogeneous/heterogeneous main chains, L2s, Rollups, and Appchains, aiming to become the infrastructure channel for inter-chain interoperability.

However, it should also be noted that it is not easy to truly shake projects like LayerZero that already have a certain market share and ecological depth. Although Union's technological path is advanced, the complexity and maturity of ZK technology itself are also a challenge. Ultimately, whether it can succeed depends on its actual performance after the mainnet launch and the speed of ecological sustainable development.