Chainlink (LINK) has reasons to believe that it has found the perfect solution that would bridge the gap between the traditional finance (TradFi) sector and the brewing crypto industry.
The dominant data oracle recently launched a Cross-Chain Interoperability Protocol (CCIP) on its mainnet. The infrastructure which currently supports Avalanche (AVAX), Ethereum (ETH), Optimism and Polygon (MATIC) networks in its early implementation phase, is geared towards making money transfer between these blockchains easier.
Chainlink’s CCIP Launched on 5 Testnets
The launch of the CCIP has further taken momentum as Chainlink has made it available for developers on 5 of the major testnets in use in the decentralized finance ecosystem. These testnets include Arbitrum Goerli, Avalanche Fuji, Ethereum Sepolia, Optimism Goerli, and Polygon Mumbai. It also has scheduled a masterclass about the new CCIP to push the boundaries and help more developers and enthusiasts join this momentum.
1/ Chainlink CCIP is now available to all developers on 5 testnets 🏗️
∙ Arbitrum Goerli
∙ Avalanche Fuji
∙ Ethereum Sepolia
∙ Optimism Goerli
∙ Polygon Mumbai#LinkTheWorld pic.twitter.com/IoxdRdVUjT— Chainlink (@chainlink) July 20, 2023
The launch of this interoperability protocol on this testnet will help bootstrap developers to start building applications without the fear of limitations of cross-chain value transfers.
Global financial messaging service SWIFT has been working with Chainlink to find a working strategy to integrate public and private blockchains for global banking.
Since that time, efforts have gone into designing an interoperability model that allows seamless access to different blockchain platforms globally. It was not until the beginning of this week that Chainlink introduced the much-anticipated interoperability protocol.
According to Chainlink, the security model behind this CCIP is the same as the one behind price oracles which is equipped to be flash-loan attack resistant. This security model is designed to withstand other commonly known threats. Much more, Chainlink’s Chief Executive Officer (CEO) and Co-founder Sergey Nazarov have greater plans beyond linking public blockchains.
Crypto May Gain Trillions of Dollars Soon
Nazarov is looking forward to when banks and other traditional financial institutions will equally launch their blockchains which will likely be controlled or permissioned.
Then at a point in time, these blockchains would be free to interact with public blockchains like Ethereum through the use of its CCIP depending on the allowance granted by regulators. He believes that if his thesis is correct, the implementation will bring about great value to crypto running into trillions of dollars.
“You have this public blockchain and internet of contracts primarily defined by DeFi, and you have this bank-chain world, which I think will be primarily defined by real-world asset tokens. The next stage will be getting these two worlds to overlap,” Nazarov said in an interview.
