# Zetachain again

**Published by:** [Ethombu](https://paragraph.com/@ethombu/)
**Published on:** 2023-04-29
**URL:** https://paragraph.com/@ethombu/zetachain-again

## Content

What we understand about Zetachain. Zetachain is primarily another cosmos fork, but with a big twist: omnichain. Omnichain refers to the ability to freely exchange data between different blockchains. Cross-chain interoperability allows smart contracts on different blockchains to interact with each other without the need to physically transfer tokens from one chain to another. Layer-zero is the closest omnichain competitor, so we will compare it to Zetachain. Layer-zero requires smart contracts to be deployed in each supported network, which exchange inter-network messages through a layer-zero protocol. In Zetachain, the omnichain smart contract is only created in Zetachain, but it allows asset management and control in other chains. This means that it is much easier to connect networks where it is impossible to deploy a smart contract, such as BTC. In terms of technical architecture, Zetachain has three functions that typically fall on the shoulders of regular validators. These are the validator, observer, and signer. The validator suggests one block per week and participates in voting, having a small voting power. The observer watches for changes in external networks and pings the validator if necessary. The signer has access to keys with assets in external networks and can modify balances with the consent of the majority. One interesting feature is that no one has individual access to smart contracts or wallets (and therefore deposits) in external networks. When initializing a smart contract in Zetachain, TSS wallets are automatically created on each of the selected networks. Each validator node receives a piece of the private key from the TSS storage. Nodes can perform actions with the balance only if approved by the majority of network participants. This is called Threshold Signature Scheme (TSS), reminiscent of distributed validators like #OBOL. Zetachain also features a compatible EVM execution layer (zEVM), and ERC20 assets are almost entirely compatible with ZRC20.

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