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Chainlink Unveils Groundbreaking Cross-Chain Transfer Protocol
- Chainlink has teamed up with USDC issuer Circle by integrating the company’s interoperability protocol into its own.
- The new cross-chain protocol will support developers integrating USDC transfers across independent Layer 1 chains.
- Chainlink is a decentralised oracle network with a keen eye on interoperability, forming other strong partnerships with real-world institutions like ANZ.
- The blockchain is renowned for its multiple layers of security.
Chainlink has been one of the most active cryptocurrency projects throughout the past 12 months. The development team has secured partnerships with many relevant, real-world players – but perhaps their greatest coup has only just arrived. Yesterday, Chainlink announced a collaboration with Circle (the company behind the number two stablecoin USDC) to integrate Cricle’s Cross-Chain Transfer Protocol (CCTP) into its own network.
What Does This Mean?
In simple terms, Chainlink is melding the CCTP to its own interoperability network, the Cross-Chain Interoperability Protocol (CCIP). The merger will allow app developers to build platforms that support USDC deposits and transactions across multiple blockchains. The everyday investor will similarly be able to capitalise by spending their stablecoins across supported networks, rather than needing to convert their USDC each time they want to use separate blockchains.
Chainlink founder Sergey Nazarov was optimistic on the potential of the pairing:
We’re excited to support the adoption of stablecoins across a variety of cross-chain use cases. I’m pleased to see that the defense in-depth security infrastructure of CCIP, with multiple layers of decentralization, is something highly valued by developers building with USDC.
Sergey Nazarov What is Chainlink (LINK)?
Chainlink is a decentralised oracle network that aims to connect off-chain data with on-chain smart contracts. Australian bank ANZ has leveraged this power for its upcoming AUD stablecoin project, for example.
A key to Chainlink’s mission is bringing interoperability to the Web3 world, by providing tamper-proof information across multiple blockchains.
Historically, attempts to facilitate interoperability have sacrificed security or decentralisation, resulting in potential exploits and hacks. Many of the DeFi industry’s largest losses have come due to smart contract bugs on bridges (intended to transfer tokens across two independent Layer 1 chains).
However, Chainlink is renowned for its immense security measures. They include an independent Risk Management Network that constantly monitors cross-chain operations, alongside five levels of security (defence in depth) to protect the blockchain.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
