There blockchain allows several conveniences to people: to mention the possibility of control of their property and data. Connecting this technology with traditional finance (TradFi) is a challenge that Chainlink faced. To do this, the data provider has developed the Cross-Chain Interoperability Protocol (CCIP) which marries easily with banking chains. Big plan !
Chainlink’s CCIP online
Like Circle, which successfully launched its Cross-Chain Transfer Protocol (CCTP) last April, Chainlink has also developed a similar protocol. Except that this one is rather focused on interoperability.
Thus, thanks to this particularity, Chainlink thinks it has developed a standard conducive to the connection of all blockchains with banking chains.
” Chainlink’s CCIP is online on the mainnet! The first users are Synthetix_io which uses the CCIP to secure its ‘burn-and-mint’ model for the cash transfer between chainsand Aave, which uses the CCIP to ensure the sustainability of its multi-channel mechanism. »
THE official statement posted on the Chainlink site indicates that the CCIP, which is akin to a global standard for cross-chain communicationis online on the following blockchains: Polygon, Ethereum, Avalanche and Optimism.
Additionally, the same protocol will also integrate Ethereum Sepolia, Arbitrum Goerli, Optimism Goeri, Polygon Mumbai, and Avalanche Fuji testnets this Thursday, July 20.
Some details about the CCIP
Aware of the multi-channel world we live in, and the volume of transfers between channels (170 billion dollars according to the blog of Chainlink), the leader of web services 3 Chainlink (LINK) has decided to implement its protocol.
According to him, the CCIP is defined as follows:
” The Cross-Chainlink Interoperability Protocol (CCIP) is a open-source standard for cross-chain communication which establishes a universal connection between any public and private blockchain. The CCIP is designed to allow applications and user interfaces built on top of them to send arbitrary data, transfer tokens, or transmit instructions with tokens between blockchains (i.e. programmable token transfers).»
Banking chains among the advantages
As a reminder, the Society for Worldwide Interbank Financial Telecommunication (SWIF) has already shown interest for Chainlink CCIP in June. A test with several banks (BNP Paribas, Lloyds Banking Group, etc.) was one of the clauses of their partnership at the time. In this way, the two giants will be able to establish an inventory of blockchain interoperability for banks.
According to Sergey Nazarov (co-founder of Chainlink), his team created the CCIP to ” connect the fragmented public blockchain landscape and growing blockchain banking ecosystem into a single Internet of Contracts “.
Otherwise, you will find in this article elements to understand this concept of cross-chain.
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