Chainlink has gone live with its cross-chain protocol that is aimed at providing interoperability between traditional financial firms and public and private blockchains. Based on the firm’s announcement, it has come to light that the Cross Chain Interoperability Protocol has been launched under early access on Ethereum, Avalanche, Polygon, Arbitrum, and Optimism. Furthermore, it is expected that all developers on these platforms would have access to CCIP on their respective testnets on July 20 this year.
— Chainlink (@chainlink) July 17, 2023
CCIP is an interoperability protocol that allows enterprises to transfer data and value between a series of public and private blockchains directly from their established backend systems. Furthermore, Chainlink’s recently introduced solution uses Swift’s infrastructure, which is believed to be in use by more than 11,000 banks throughout the world.
Similarly, the interoperability solution offers great security, reliability, and ease of use to developers for building cross-chain applications and services. Developers are not only offered the flexibility of building their cross-chain solutions but are also offered Simplified Token Transfers.
A Breakthrough Development!
This provision by CCIP enables protocols to swiftly start the transfer of tokens between chains via audited token pool contracts. The need for writing custom code is eliminated, and this would also drastically reduce the time involved in the process as well. With the news making its rounds throughout the market, the price of LINK has surged.
The token is currently trading for almost $7.14, signifying an increase of 6.26% in the previous 24 hours. At the same time, the total market cap of LINK currently stands at the $3.8 billion mark.
Institutions Start Exploring the Interoperability Protocol by Chainlink
Prior to its official launch, CCIP was under extensive testing by almost 25 partners that are now planning to move toward the mainnet. Some of the early adopters of CCIP include the decentralized liquidity platform, Synthetix, and the decentralized finance protocol, Aave.
Some other firms that are currently exploring the use of the Chainlink interoperability solution include BNY Mellon, Citi, Australia and New Zealand Banking Group, Clearstream, Euroclear, and Lloyds Banking Group.
The implementation of cross-chain interoperability would give banks access to real-world tokens and would enable them to explore the blockchain space in several ways. Several analysts believe that banks tend to remain interested as their customers want crypto through their institutions.