Chainlink has been evolving the crypto space from the day they entered the scene. First with their oracle solutions that bridged the gap between real world data and blockchains and now with CCIP, that is looking to bridge the gap between traditional financial institutions and the crypto space and everything in it. In this article we will look at Chainlinks CCIP their recent announcement with swift and a report that was recently published talking about how Chainlink is helping tokenisation (everything will be tokenised)
An introduction to chainlink:
Chainlink is the industry-standard Web3 services platform that has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.
Chain-link revolutionised the blockchain space with their oracle solutions that solved the problem of how to get real-world data on chain in a trustable verifiable way! They essentially enables defi with their price feeds and bridged the gap between the real world and web 3!
Recently Chainlink Revealed a New product CCIP:
The Chainlink Cross-Chain Interoperability Protocol (CCIP) provides a single simple interface through which dApps and web3 entrepreneurs can securely meet all their cross-chain needs, including token transfers and arbitrary messaging.
Given the inherent risks of cross-chain interoperability, a security-first mindset is being applied to CCIP. Some security features include a Risk Management Network that monitors for malicious activity, decentralized oracle computation from a wide range of high-quality node operators with verifiable on-chain performance histories, and the off-chain reporting protocol, which already secures significant value on several mainnet blockchains.
On June the 6th 2023 Swift announced a colossal partnership with Chainlink:
From the swift website relating to the news:
‘in a new set of experiments, we will collaborate with more than a dozen major financial institutions and FMIs including Australia and New Zealand Banking Group Limited (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX) and The Depository Trust & Clearing Corporation (DTCC) – to test how firms can leverage their existing Swift infrastructure to efficiently instruct the transfer of tokenised value over a range of public and private blockchain networks. Chainlink, a leading Web3 services platform, will provide connectivity across public and private blockchains for these experiments.’
‘The first use case will involve the transfer of tokenised assets between two wallets on the same public blockchain network (Ethereum Sepolia testnet). The second involves the transfer of tokenised assets from a public blockchain (Ethereum) to a permissioned blockchain. And a third use case will test the transfer of tokenised assets from Ethereum to another public blockchain. Chainlink will be used as an enterprise abstraction layer to securely connect the Swift network to the Ethereum Sepolia network, while Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will enable complete interoperability between the source and destination blockchains.
“We’re excited to work with Swift. It’s clear that as banks endeavor to access multiple blockchains, a common connectivity layer across the various chains will be a critical building block for their adoption of on-chain finance,” said Sergey Nazarov, Co-Founder of Chainlink.’
On the 31st of August a report was published on the project by swift:
From the report – “The collaboration between Swift, Chainlink, and the financial community represents significant progress towards enabling interoperability between traditional financial systems and emerging blockchain networks … By leveraging existing Swift infrastructure and Chainlink CCIP, the collaboration demonstrated the ability to transfer tokenised value efficiently and securely across public and private blockchains, using standardised messaging formats and proven business processes.”
The report also talks about the colossal nature of tokenisation and its important – ‘ While tokenisation is in its infancy, 97% of institutional investors believe it will revolutionise asset management and be a positive force in the industry, not least because of its potential to increase efficiency, reduce costs and, by enabling fractional ownership, open up opportunities to more investors.’
Sergey Nazarov, Co-founder Of Chainlink, commented: “It’s now clear that both top global banks and leading market infrastructures believe there will be greater adoption of digital assets across the entire banking industry, and that this adoption will happen using multiple different blockchain technologies at the same time. The collaboration between Swift, over ten of the largest financial institutions, and Chainlink also proved that interoperability across chains is critical to enabling the next stage of digital asset adoption across the global financial system. When combining Swift and CCIP, we were able to show that this new level of interoperability across various blockchains is now possible with minimal resources from even the largest banks and market infrastructures.”
Chainlink may be the link (pardon the pun) between crypto and the traditional financial system. Its certainly leading the way as we speak!! Keep an eye on chainlink!!