Chainlink Launches Cross-Chain Protocol for Better Connectivity
Chainlink has launched its Cross-Chain Interoperability Protocol (CCIP) to enhance cross-chain connectivity, allowing developers to effortlessly use it for cross-chain token transfers and smart contract messaging across different blockchain networks.
With CCIP, developers can execute and trigger function calls on smart contracts deployed on other blockchains, thereby making cross-chain smart contracts more interoperable. CCIP’s mainnet release aims to facilitate faster and simpler implementation for developers, reinforcing cross-chain connectivity.
According to Chainlink co-founder Sergey Nazarov, CCIP is increasingly becoming the standard for capital markets blockchain transactions across banks, as well as for securely moving Web3 cross-chain value and data across public chains.
Cross-chain bridges are essential for facilitating transactions between different blockchain networks but represent significant vulnerabilities in the crypto space. Chainlink is a key player in cross-chain interoperability, addressing one of the industry’s most pressing shortcomings.
In April, Chainlink launched Transporter, a cross-chain messaging app for bridging tokens, with the goal of enabling more secure cross-chain crypto transfers through a user-friendly app interface. Transporter is powered by CCIP, the only cross-chain protocol achieving level-5 security.
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CCIP is currently available on nine blockchains, including Arbitrum, Avalanche, Base, BNB Chain, Ethereum, Kroma, Optimism, Polygon, and WEMIX, with plans for integration with more networks.
CCIP aims to assist financial institutions in unlocking the $500 trillion opportunity in tokenized assets by offering better liquidity access for cross-chain assets.
Cross-chain bridges represent some of the most significant points of vulnerability in today’s crypto protocols, with over $5.85 billion worth of cryptocurrency stolen from decentralized finance (DeFi) protocols since 2016. Cross-chain bridges account for over 48%, or $2.83 billion, of the total value lost to exploits, according to DefiLlama data.
Ethereum co-founder Vitalik Buterin has previously criticized cross-chain infrastructure. In a Reddit post from January 2022, Buterin shared his concerns about the potential increase in 51% attacks on cross-chain bridges in the future due to their growing usage.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
