Chainlink Unveils Cross-Chain Interoperability Protocol

Republished By Plato

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The protocol will be available to Arbitrum, Ethereum, Avalanche, Polygon, and Optimism developers on July 20th.

Chainlink, a blockchain-based decentralized oracle network (DON), has introduced a pioneering cross-chain interoperability protocol.

With the launch, Chainlink aims to bridge the gap between traditional financial institutions and both public or private blockchains by enabling businesses to move data and assets between blockchain environments directly from their backend systems.

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According to the July 17th Chainlink blog post, the Cross-Chain Interoperability Protocol (CCIP) is now available for early access on multiple platforms such as Ethereum, Avalanche, Polygon, Arbitrum, and Optimism.

Starting July 20th, developers working on these platforms will find CCIP on their individual testnets.

Chainlink's cross-chain solution integrates Swift's messaging infrastructure, a tool used by over 11,000 banks to simplify international payments and settlements.

During the July 17th address, Chainlink's co-founder and CEO Sergey Nazarov revealed that CCIP aims to form a nexus between the on-chain and off-chain ecosystems:

Just like key standards such as TCP/IP remade a fragmented early internet into the single global internet we all know and use today, we are making CCIP to connect the fragmented public blockchain landscape and the growing bank chain ecosystem into a single Internet of Contracts.

Nazarov further highlighted the critical role an interoperability solution, capable of seamless value transmission across networks, will play in fostering a society driven by blockchain technology.

Several financial establishments, including BNY Mellon, BNP Paribas, Citi, Australia and New Zealand Banking Group, Clearstream, Euroclear, and Lloyds Banking Group, are believed to be exploring Chainlink's cross-chain solution.

Besides the five blockchains welcoming CCIP, decentralized finance protocol AAVE is also gearing up to deploy this interoperability solution. Synthetix, a decentralized derivatives platform, is already up and running on the CCIP mainnet.

It is worth noting that following the news about the launch, Chainlink's native token LINK witnessed an almost 8% increase, retailing for $7.05.

Chainlink's recent rollout of the Cross-Chain Interoperability Protocol signifies a major stride towards bridging traditional financial mechanisms with the innovative world of blockchain technology. This development signals a significant leap toward a future where blockchain-empowered systems can interact seamlessly with existing financial frameworks.

In other news, in May, Chainlink partnered with Coinbase to boost the network's security.

Edited by: Gile K.,

Market Sentiment Analyst

Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.

As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.

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