Chainlink has recently marked its entry into Ethereum layer 2, Arbitrum, aiming it to facilitate cross-chain DApp development. The launch of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) on Arbitrum One in September 2021, was designed to help developers added to arbitrate high-throughput, reasonably priced scaling. The convergence of CCIP and Arbitrum One’s infrastructure is calculated to unlock a new horizon of several use cases like cross-chain tokenization and collateralization, blockchain gaming, data storage, and computation.
With regards to the partnership, Johann Eid, Chainlink Labs chief business officer, acknowledged Arbitrum’s role in decreasing transaction congestion from Ethereum’s base layer and offering a base to build DApps. As per him, CCIP gives its users a highly secure and user-friendly protocol that helps in the growth of cross-chain smart contracts, thereby opening up new opportunities of growth, accessibility, and innovation.
Although optimistic on its rollup technology, Arbitrum’s approach currently holds about 60% of total value locked in the wider Ethereum layer two ecosystem. It seems to be well-appreciated for its fast and low fee transactions that are batched off-chain and then submitted to Ethereum’s base layer, although its acceptance by network validators is assumed rather than definitive. Simultaneously, Chainlink’s CCIP permits developers to erect cross-chain DApps using arbitrary messaging and simplified token transfers. This incorporates Chainlink’s decentralized oracle network that lets smart contracts securely capture off-chain data sources, APIs, and payment systems.
On the flip side, some skeptics also think the collaboration has downsides. They criticize for instance that the high throughput of Arbitrum may give rise to security vulnerabilities due to rapid transaction execution. Additionally, some believe that the offloading of transaction congestion may not be as effective as it seems, that the cross-chain smart contracts may be prone to bugs, and that unrestricted access to a secure interoperability protocol may create gateway for illicit activities.
Lastly, the scheme seems favorable for the development and growth of multi-chain applications and a better ecosystem. But it would also be interesting to see how well the new venture will handle security issues, a variable that can be unpredictable.
Source: Cointelegraph
