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Chainlink expands cross-chain capabilities to Base network

In this post:

  • Chainlink has extended its Cross-Chain Interoperability Protocol (CCIP) to Base, an Ethereum layer-2 network incubated by Coinbase, aiming to facilitate seamless communication between various blockchains and traditional Web2 applications.
  • Several projects, including Raft, Nuon, Folks Finance, and Polychain Monsters, are already integrating CCIP on Base, with the protocol generating over $86,000 in revenue since its July debut.
  • Chainlink’s CCIP also shows promise in bridging traditional financial systems with blockchain technologies, as evidenced by successful SWIFT-based payment experiments with leading banks like Citi and BNY Mellon.

Chainlink, the renowned blockchain oracle platform, has extended its Cross-Chain Interoperability Protocol (CCIP) to Base, an Ethereum layer-2 network incubated by Coinbase. According to an official announcement, this integration aims to facilitate seamless communication between various blockchains and traditional Web2 applications, such as SWIFT’s payment system.

The CCIP protocol allows for the development of applications that can send messages, transfer tokens, and initiate various actions across multiple blockchain networks. Moreover, Chainlink serves as the primary oracle for the Base network, enhancing the reliability and security of cross-chain operations.

Projects and revenue generation through CCIP

Additionally, the announcement highlighted that several projects, including Raft, Nuon, Folks Finance, and Polychain Monsters, are already in the process of integrating CCIP on Base. Johann Eid, Chief Business Officer at Chainlink Labs, stated that this new development grants developers access to a leading interoperability protocol, thereby enabling them to build robust cross-chain applications and services. Jesse Pollak, the creator of Base, echoed this sentiment, stating that the launch empowers developers to securely build cross-chain applications, thereby encouraging further experimentation and the unlocking of new use cases.

Since its debut in July of this year, Chainlink’s CCIP has been integrated with multiple blockchain networks, including Ethereum, Avalanche, Polygon, Arbitrum, and Optimism. Base is the latest addition to this growing list. Significantly, the protocol has been implemented across ten applications and has generated revenue exceeding $86,000, as per data from a Dune dashboard.

Chainlink’s foray into traditional financial systems

However, Chainlink’s ambitions don’t stop at blockchain networks. The company has also successfully conducted experiments involving SWIFT-based payments from leading financial institutions like Citi and BNY Mellon to various blockchains. These experiments underscore the potential of CCIP to serve as a bridge between traditional financial systems and emerging blockchain technologies, thereby broadening the scope of what is achievable in the financial sector.

In a related development, Base has been gaining traction since its mainnet went public on August 9. It allows projects to deploy their applications on the Layer 2 network and facilitates the onboarding of users and assets from Ethereum and other interoperable chains. According to data from The Block, daily transactions and new unique addresses on Base have recently surpassed those of previously dominant optimistic rollup scaling solutions like Arbitrum and Optimism.

Hence, the integration of Chainlink’s CCIP on Base not only marks a significant milestone for both companies but also sets the stage for the next wave of innovations in the blockchain industry. With the scalability and technological creativity of Base as a Layer 2 solution, combined with an ever-increasing number of Chainlink services, developers are well-positioned to build the next generation of cross-chain applications and services.

Chainlink Labs claims that its oracle networks have secured billions of dollars in assets and facilitated over $8 trillion in on-chain transaction value. Consequently, the integration of CCIP on Base’s Layer 2 could potentially unlock new avenues for asset security and transactional efficiency in the blockchain space.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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