Chainlink has launched its CCIP cross-chain interoperability protocol to connect financial institutions to the blockchain world.
Chainlink's new cross-chain interoperability protocol, called Cross-Chain Interoperability Protocol (CCIP), has launched on major market blockchains Ethereum and Avalanche, as well as layer-2 (LXNUMX) networks Optimism and Polygon Network.
Through this interoperability protocol, Chainlink, the decentralized oracle network that runs on Ethereum, seeks to Connecting the multiple applications that are part of the blockchain and Web3 ecosystem to unlock the cross-chain economy. Currently, decentralized protocols like Aave and Synthetix are adopting CCIP to facilitate token transfers and allow liquidity from these protocols to flow to other areas of higher demand, Chainlink noted.
Furthermore, by using the infrastructure of the SWIFT interbank financial communications network, the Chainlink interoperability protocol also allows businesses and financial institutions, such as banks, to connect and interoperate in any blockchain environment, whether public or private, directly from your existing backend systems.
Sergey Nazarov, co-founder of Chainlink, explained that the CCIP protocol was built with the aim of creating a new global, transparent and decentralized financial system, which is cryptographically guaranteed and which allows risk control to be returned to the parties that are most affected by it.
What is Cross-Chain Interoperability Protocol (CCIP)?
CCIP is a blockchain abstraction layer which facilitates interoperability between the blockchain ecosystem and the traditional financial system. The goal of this new protocol launched by Chainlink is to build a new multi-chain ecosystem to link the different blockchain networks, subnets, parachains, solutions, applications, and protocols that exist in Web3. CCIP also wants to remove the complexity and security risks of existing cross-chain solutions in order to unlock a new wave of innovation and accelerate the adoption of the next generation of the web.
According to Chainlink, CCIP is destined to become a connectivity standard that meshes institutional and banking networks and the existing public and decentralized ecosystem on blockchain. Developers and institutions will be able to use this interoperability protocol to power different use cases, such as cross-chain tokenized assets, cross-chain NFT and gaming applications, and solutions for data storage and computation on different blockchains, among others.
Chainlink is the most widely used oracle network in the blockchain ecosystem. So far, this network has transacted more than $8.000 billion dollars.
In March, Chainlink partnered with the German subsidiary of consulting firm PwC to create new tools that make it easier for companies to integrate blockchain solutions, in order to accelerate the adoption of this powerful technology in business environments. The decentralized oracle network noted that companies working with PwC Germany will be able to develop smart contracts and securely operate Chainlink's blockchain infrastructure.
BNP Paribas, Australia and New Zealand Banking Group and Lloyds Banking Group are also among the institutions that have explored solutions based on this blockchain oracle network.
Continue reading: Chainlink Functions is launched, a platform to bring services from Web2 to Web3
