2023-07-24
Chainlink
launched its own interoperability protocol on July 18, 2023. It is called Cross-Chain Interoperability Protocol (CCIP).
Blockchains that currently support CCIP include:
Avalanche
Ethereum
Optimism
Polygon
And also 2 dApps have announced the support of CCIP include:
Aave
Synthetix
How CCIP works?
CCIP enables users to programmatically
transfer tokens from one blockchain to another via lock-and-mint or
burn-and-mint mechanisms, along with attaching arbitrary data commands.
CCIP provides audited token pool contracts that handle the
complexity of burning/minting or locking/unlocking of your token across chains.
For example, CCIP will enable users to transfer their tokens
on many blockchains back and forth. DeFi users on Aave can transfer their tokens from one blockchain to another with ease and seamlessly.
CCIP will unlock a wide variety of cross-chain use cases
such as token transfer, DeFi, and Gaming.
Chainlink decided to create interoperability because
cross-chain transfer needs to use Oracle. Chainlink already has the technology,
it just need to develop it to create interoperability protocol.
CCIP focuses on security which is the most important thing
for cross-chain transfers. CCIP uses Chainlink’s Oracle and also features additional
layers of protection via the Active Risk Management (ARM) Network and transfer
rate limits.
Chainlink currently has a fully diluted market cap of $7.738 billion. It has a max supply of 1 billion LINK.
