LINK Soars as Chainlink Integrates CCIP With Coinbase’s Base

Chainlink, the blockchain industry’s most prominent oracle protocol, has expanded its cross-chain interoperability to support Base. LINK, the native cryptocurrency of Chainlink’s network, enjoyed a stellar week on the back of the news, gaining 10% in the past seven days.

What is Chainlink’s CCIP?

The star of the show is Chainlink’s Cross-Chain Interoperability Protocol (CCIP), a communication protocol that lets blockchains interact with other independent networks. The function can be as simple as transferring cryptocurrencies from one blockchain to another, or as complex as allowing developers to access several different networks from one interface. 

CCIP has already integrated with several major blockchains, including Ethereum, Avalanche, Polygon, Arbitrum, Optimism and now Base. In just three months, CCIP-ready decentralised applications (dApps) have generated nearly US $90,000 ($ 141,740)  in revenue. This means Web3 projects like Polychain Monster and Nuon finance can be accessed via multiple networks.

Interoperability solutions like CCIP unlock the door for project developers to experiment and get the most out of their applications. Rather than focusing on one unique coding language and porting clientele to a specific protocol, such services can be seamlessly provided across several blockchains.

What is Base?

Base is a layer 2 scaling solution for Ethereum built by the United State’s biggest cryptocurrency company, Coinbase. The public business created the infrastructure to improve congestion and excessive gas fees encountered by those using Ether-based dApps. 

The network rose to stardom earlier this year thanks to the fledgling social media platform, friend.tech. For a brief moment, Base even toppled Ethereum as the protocol with the greatest daily transactions. 

The layer 2 blockchain’s creator, Jesse Pollak, was bullish about the impact the partnership between Base and Chainlink would have: “[It will] let developers securely build cross-chain applications, empowering them to experiment further and unlock new use cases”.

The importance of interoperability 

Interoperability is a game-changer for blockchains and Chainlink’s CCIP has found life outside the Web3 industry. International bank and payment gateway SWIFT recently teamed up with Chainlink to test sending tokenised assets from the Sepolia protocol to other blockchains. The experiment successfully demonstrated the power of a CCIP for digitising traditional assets like fiat currency and bonds.

Closer to home, Australia and New Zealand Banking Group Limited (ANZ) has also partnered with Chainlink and its CCIP to bring an AUD-based stablecoin to the financial institution. ANZ has already minted its currency, A$DC, to reduce the fees for settling large, international transactions. They hope Chainlink can help streamline sending AUD stablecoins to clients using different decentralised protocols.