Ethereum engineering firm Nethermind leaves LayerZero verifier role for Chainlink

Nethermind, a core contributor to the Ethereum ecosystem, is leaving its role as a LayerZero verifier and moving its cross-chain operations to Chainlink following an "extensive review."

"Nethermind has joined the Chainlink Network as a node operator and strategic technology provider, migrating its DVN [Decentralized Verifier Network] operations," Nethermind said Wednesday.

DVNs are independent entities that validate the authenticity and integrity of messages sent across blockchains within the LayerZero ecosystem. As a Chainlink technology provider, Nethermind will also contribute engineering tools, infrastructure services and integration support for teams building blockchain applications.

"The move reflects a notable shift by a prominent LayerZero infrastructure operator toward Chainlink's secure-by-default architecture as institutional adoption of onchain finance accelerates," a Chainlink spokesperson told The Block.

LayerZero exodus

Nethermind joins a growing group of firms that have moved cross-chain operations from LayerZero to Chainlink in the months since an April attack on Kelp DAO's rsETH bridge. The attack resulted in the loss of 116,500 rsETH, worth about $292 million at the time, from the LayerZero-powered bridge.

It is unclear whether Nethermind started its extensive review after the Kelp exploit. Nethermind did not immediately respond to a request for comment sent via the Chainlink spokesperson. The announcement did not identify any specific technical problem with LayerZero or disclose financial or other terms related to the Chainlink shift.

Founded in 2017, Nethermind is an Ethereum engineering firm with more than 200 employees and develops one of Ethereum's main execution clients.

Nethermind CEO Daniel Celeda said the firm will apply its experience building an Ethereum execution client to its work with Chainlink.

"Being a node operator carries real responsibility for a network's reliability, and that's consistent with how we approach every engineering commitment we make," Celeda said in a statement. "Having built one of Ethereum's most performant execution clients, now powering more than a third of the network, we're bringing that same deep engineering expertise to meet the demands of Chainlink's institutional clients."

Update (Aug. 20, 5:47 p.m. ET): This article has been updated for clarity.