How Zero Blockchain Cracked 2M TPS Without Sacrificing Decentralization - Unchained Recap

Podcast: Unchained

Published: 2026-02-10

Duration: 41 minutes

Guests: Bryan Pellegrino

Summary

LayerZero Labs' new blockchain, Zero, reaches 2 million transactions per second without losing decentralization, thanks to breakthroughs in storage and zero-knowledge technology. Major financial institutions are eyeing this system for future developments.

What Happened

LayerZero Labs is introducing Zero, a blockchain that achieves unprecedented scalability without compromising decentralization, handling up to 2 million transactions per second per node. Bryan Pellegrino, the CEO of LayerZero Labs, detailed how the blockchain is built on four major advancements: storage, compute, network, and zero-knowledge proofs (ZK). The storage layer, known as QMDB, significantly enhances performance by allowing 3 million updates per second, a critical factor in blockchain efficiency.

Zero's architecture enables any virtual machine or Linux binary to be compiled into an executable, which increases flexibility and performance. Zero-knowledge proofs are employed to compress compute, allowing nodes to verify proofs instead of replicating computations, a step that conserves power and increases efficiency. Pellegrino emphasized the blockchain's aim to support decentralized, permissionless systems, with a keen focus on smart contract development and global market applications.

Prominent financial entities like Citadel Securities, DTCC, and ICE have partnered with LayerZero, indicating institutional interest in Zero's capabilities. The blockchain's mainnet is scheduled to launch in September, and it will not introduce a new token, utilizing the existing ZRO token instead. This strategy reflects LayerZero's commitment to stability and long-term partnerships.

LayerZero currently connects 165 blockchains and managed over $100 billion in flow last year, showcasing its formidable presence in the industry. The company has identified storage constraints as a primary hindrance to blockchain performance but believes Zero's advancements will address these issues effectively. Notably, Zero can verify a million transactions per second on a Raspberry Pi using just one-tenth of the power required by traditional systems.

Pellegrino discussed LayerZero's growth from zero market share by working closely with prominent partners and focusing on real-world applications of blockchain technology. The discussion touched on the company's decision to avoid raising new funding rounds, instead opting for strategic investments from select partners.

The episode further explored how LayerZero has tackled challenges with non-EVM blockchains, uncovering critical issues and leveraging their expertise to drive improvements. This proactive approach has helped LayerZero expand its reach and enhance its service offerings across various networks, including USDT Zero, which achieved $70 billion in volume within nine months.

Key Insights