- Chainlink has launched a cross-chain protocol that extends beyond blockchain and into the conventional financial world
- Dubbed Cross-Chain Interoperability Protocol (CCIP), it links traditional finance with the blockchain space
- The protocol is initially available to developers on five leading blockchains like Ethereum and Avalanche
Chainlink has launched a cross-chain protocol that extends beyond blockchain and into the conventional financial world. Dubbed Cross-Chain Interoperability Protocol (CCIP), it links traditional finance with the blockchain space. The protocol is initially available to developers on five leading blockchains including Ethereum, Avalanche and Polygon.
CCIP Will be the TCP/IP of Finance
According to Chainlink, the protocol uses the same security model employed by its price oracles, with Chainlink’s co-founder Sergey Nazarov noting that they intend to make CCIP the base architecture of the finance world just as “TCP/IP” is to the internet. Nazarov added that the protocol defines a common communication standard between decentralized platforms enabling it to contribute to the growth of DeFi.
1/ The Chainlink Cross-Chain Interoperability Protocol (CCIP) has officially launched on Avalanche, Ethereum, Optimism, and Polygon mainnets.#LinkTheWorld pic.twitter.com/SdLVyaapg3
— Chainlink (@chainlink) July 17, 2023
Although it’s currently available as early access, CCIP has gained adoption from leading DeFi projects such as Aave and Synthetix “to unlock cross-chain economy.” In a tweet, Chainlink revealed that Synthetix is employing CCIP to secure its burn-and-mint model that allows tokens to be transferred across chains.
3/ Synthetix is using #CCIP to seamlessly transfer tokens across chains via a highly secure burn-and-mint model.
With CCIP, Synth Teleporters now enable Synthetix liquidity to flow toward areas of highest demand, bypassing the constraints of traditional token bridges. pic.twitter.com/k0uPZ6f7te
— Chainlink (@chainlink) July 17, 2023
In a blog post, Chainlink Labs’ CPO Kemal El Moujahid wrote that the protocol gives developers a simplified way to securely move tokens across different blockchains “without writing custom code.” Moujahid added that CCIP opens the door to cross-chain collateral, liquid staking tokens, NFTs, account abstraction, gaming, data storage and computation.
Gnosis Also Securing Cross-Chain Bridges
CCIP comes at a time when existing solutions for moving assets across chains are raising security concerns after suffering multiple hacks. Multichain, for example, is among the latest such projects to lose millions of dollars worth of assets to hackers. Apart from Chainlink, other platforms like Gnosis have unveiled tools to secure cross-chain bridges.
Although Chainlink is known to provide security-tight price oracles, it’s yet to be seen whether CCIP will be able to withstand hacking attempts.
