How the ZetaChain (ZETA) project combines multiple decentralized networks into one ecosystem
Part of the fragmentation problem is solved by cross chain bridges, decentralized protocols that allow digital assets to be transferred between different, unconnected blockchains. However, the developers of ZetaChain have gone a step further and created a blockchain platform that combines multiple decentralized networks into a single ecosystem.
What is ZetaChain?
ZetaChain is a universal Layer-1 or L1 blockchain that integrates various networks, including Bitcoin, Dogecoin, Ethereum, and Solana. Like next-generation blockchain platforms, ZetaChain provides functionality through support for smart contract technology but also combines this feature with omnichain capabilities.
ZetaChain's main net was launched in February 2024, when the blockchain's native cryptocurrency was listed on exchanges. The ZetaChain protocol is designed in a way that allows developers to create universal applications that can be easily ported to other blockchain ecosystems.
How does ZetaChain work?
What sets it apart from blockchain platforms like Ethereum, Cardano or Solana is that smart contracts support omnichain interconnectivity, a protocol that enables communication between different blockchain networks. Examples of omnichain-enabled protocols include LayerZero or Gravity Chain.
Smart contracts on the ZetaChain network are also called multichain or omnichain contracts because they support cross-network functions that enable the transfer of assets between different decentralized protocols, such as Ethereum to Solana or Bitcoin to BNB Smart Chain.
At the heart of the ZetaChain blockchain is a virtual machine called the ZetaChain Universal EVM (zEVM), only with cross-network support, enabled by the Multi-Party Commutation (MPC) protocol with support for the TSS cryptographic mechanism for network security and resiliency.
The ZetaChain protocol utilizes a Proof-of-Stake (PoS) consensus mechanism based on Cosmos SDK tools using Comet BFT (Byzantine Fault Tolerance). The use of technologies developed by the Cosmos Network team enables cross-network communication and facilitates the creation of a multichain ecosystem. The Cosmos SDK and the Comet BFT consensus engine provide high performance through fast block production and instantaneous transaction confirmation. In the ZetaChain blockchain, transactions are completed in seconds. Due to the high block production speed, ZetaChain network throughput can reach 100 transactions per second (100 TPS).
There are two main roles for blockchain nodes on the ZetaChain network:
- Validators who participate in Zeta Chain consensus: validating transactions, adding blocks to the network, and ensuring security. Core Validators run the main node of the ZetaChain network called ZetaCore;
- Observer-Signer Validators monitor activity on blockchains connected to the ZetaChain multi chain ecosystem and verify the validity of cross-network transactions.
Among other things, ZetaChain developers have introduced a proprietary standard for issuing tokens on the blockchain called ZRC-20, which is compatible with Ethereum's ERC-20 standard.
ZetaChain Token
ZETA is the native cryptocurrency of the ZetaChain network, similar to ETH on the Ethereum blockchain. It serves as the primary "fuel" needed for transactions and rewards validators for validating and adding blocks.
In addition, the ZETA token provides liquidity in the decentralized protocols of the ZetaChain ecosystem and serves as an "intermediate asset" for cross-chain transactions between different networks. ZETA token holders can also participate in governance by voting on proposals to improve the ZetaChain ecosystem.
The ZetaChain protocol also includes a mechanism to burn tokens to pay transaction fees, the same method used on the Ethereum network (EIP-1559). This gradually reduces the total number of ZETA tokens in the ecosystem and helps increase their value over time.
As of April 2025, the value of a ZETA token is $0.25, down 91% relative to the all-time high of $2.85 in February 2024 and more than half the price at the time of listing ($1.63). By market capitalization, which exceeds $196 million, the ZETA token ranks 176th in the overall cryptocurrency ranking according to the monitoring service CoinMarketCap.