Chainlink's Cross-Chain Interoperability Protocol Now Generally Available
Summary:
Chainlink's Cross-Chain Interoperability Protocol (CCIP) has become generally available to enhance connectivity across multiple blockchains. Aimed at facilitating safer inter-blockchain crypto transfers, the CCIP enables developers to trigger function calls and send arbitrary messaging on smart contracts across different blockchain networks. Presently, CCIP supports nine blockchains with plans for integrating more. The system aims to help financial institutions unlock a potential $500 trillion tokenized asset market through improved liquidity access. However, Ethereum co-founder Vitalik Buterin has raised concerns over potential vulnerabilities in cross-chain systems.
Chainlink's Cross-Chain Interoperability Protocol (CCIP) is now generally available with the goal of enhancing connectivity across multiple blockchain networks. The protocol allows developers to utilize CCIP unobstructed for the transfer of tokens and messaging of arbitrary smart contracts across different blockchain systems. Additionally, developers have the ability to send and trigger function calls on smart contracts on other blockchain networks, improving cross-chain smart contract interoperability. According to Sergey Nazarov, Chainlink's co-founder, the availability of CCIP's main network will enable quicker and easier implementation for developers, boosting cross-chain connectivity.
Nazarov, in a statement to Cointelegraph, said that CCIP is establishing itself as the standard for both capital market blockchain deals across banks as well as securely transferring Web3 cross-chain value and data across public chains. Cross-chain bridges, which allow for transactions between distinct blockchain networks, are considered some of the most substantial points of vulnerability in cryptocurrency. One of the primary limitations of the industry is the lack of cross-chain interoperability since individual blockchain systems lack the ability to interact without such solutions.
Chainlink, one of the largest firms working on this issue, released a cross-chain messaging app called Transporter in early April aimed at facilitating safer cross-chain crypto transfers with a user-friendly interface. Transporter is powered by CCIP, described by a Chainlink spokesperson as "the only cross-chain protocol that achieves level-5 security." Presently, CCIP is supported on nine blockchains including Arbitrum, Avalanche, Base, BNB Chain, Ethereum, Kroma, Optimism, Polygon, and WEMIX, with further network integrations planned.
CCIP also seeks to assist financial institutions in unlocking the potential $500 trillion market in tokenized assets by providing better liquidity access for cross-chain assets. The complexities of cross-chain bridges make them one of the most significant areas of vulnerability in crypto protocols. Since 2016, over $5.85 billion in cryptocurrency has been stolen from decentralized finance (DeFi) protocols, with cross-chain bridges accounting for over 48%, or $2.83 billion, of the total value lost to exploits, as per DefiLlama data.
Ethereum co-founder Vitalik Buterin has previously expressed his concerns about the infrastructure of cross-chain systems. In a Reddit post from January 2022, Buterin warned of the increasing prevalence of 51% attacks on cross-chain bridges due to their increased usage.
Published At
4/24/2024 7:00:00 PM
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