Chainlink Labs Launches Cross-Chain Interoperability Protocol
Chainlink Labs, the development firm behind the LINK token and Chainlink protocol, has gone live with its Cross-Chain Interoperability Protocol (CCIP). This protocol aims to provide interoperability between traditional financial firms and both public and private blockchains.
On July 17, Chainlink Labs Chief Product Officer Kemal El Moujahid announced the launch of CCIP in a blog post. The protocol is now available on Ethereum, Avalanche, Polygon, Arbitrum and Optimism, and developers on these platforms will have access to CCIP on their respective testnets on July 20.
CCIP enables enterprises to transfer data and value between public or private blockchain environments directly from their backend systems. This means that users can now use the LINK token and Chainlink protocol to interact with other crypto networks such as Aave, Inverse Finance, and Spell Token, as well as traditional financial firms, all within the Web 3.0 world.
Interoperability Solution Using Swift’s Messaging Infrastructure
Chainlink’s interoperability solution leverages Swift’s messaging infrastructure, which is currently utilized by more than 11,000 banks worldwide in order to facilitate international payments and settlements. According to the United States Financial Crimes Enforcement Network, the network processed an impressive $1.8 quadrillion in transactions from over 11,000 member banks in 2021.
On July 17, Chainlink co-founder and CEO Sergey Nazarov shared his thoughts on CCIP, a bridge between the on-chain and off-chain worlds, saying:
An interoperability solution that can easily transmit value between networks is a key element of a blockchain-powered society, according to Nazarov.
Exploring the Use of Chainlink’s Interoperability Solution
Chainlink has revealed that a number of financial institutions are exploring its interoperability solution, such as BNY Mellon, BNP Paribas, Citi, Australia and New Zealand Banking Group, Clearstream, Euroclear and Lloyds Banking Group.
The Chainlink Core Interoperability Protocol (CCIP) is being integrated into five blockchains, while the decentralized finance protocol AAVE is set to implement the solution, and the decentralized derivatives platform Synthetix is already live on the CCIP mainnet.
At the time of writing, the price of Chainlink’s LINK token had increased 9.7% to $7.27 in the last eight hours, while the rest of the crypto market remained relatively neutral, according to CoinGecko.
Cointelegraph reached out to Chainlink Labs for comment but did not receive an immediate response.
Subscribe to our email newsletter to get the latest posts delivered right to your email.