In an exciting new development, Blockchain oracle network Chainlink has incorporated its Cross-Chain Interoperability Protocol (CCIP) into the Coinbase layer 2 network, Base. This integration has empowered Base’s developers with comprehensive access for constructing web3 products and services. It is worth noting here that the protocol rests entirely on Chainlink’s oracle network and it’s reported that it has assisted transactions valuing a staggering total of $8 trillion in on-chain value.
This integration allows developers to leverage smart contracts when creating decentralized applications (dApps) capable of supporting multiple networks simultaneously. With this functionality, developers can initiate transactions, transfer tokens across chains, and send messages.
Both Johann Eid, Chief Business Officer at Chainlink Labs, and Jesse Pollak, creator of Base, have been optimistic about the integration and its implications for the crypto ecosystem. Both envision it as a huge step forward in driving the adoption of innovative products in the crypto world and in turn attracting more users to the industry.
Chainlink’s unreserved approach to innovation has resulted in the expansion of its Oracle service to a plethora of smart contracts. The introduction of the CCIP marked the emergence of cross-chain lending on the platform, providing lending and borrowing access to virtual assets across diverse networks. Since the announcement of the CCIP in July, the protocol has been incorporated into Ethereum, Arbitrum, Optimism, Polygon, Avalanche and of course, Base.
Opinions vary, but recently a potent partnership between interbank messaging service Swift and Chainlink announced successfully executing blockchain interoperability. This collaboration was crucial to connecting traditional financial networks with blockchain using Chainlink’s technology for transferring tokenized assets across various chains.
However, the platform also faced some skepticism about centralization on its journey to revolutionize the crypto industry. Last week, Chainlink allayed concerns about the recent covert changes to its multisig by emphasizing its continuous process of updating. The network assured that the reduction was part of a standard signer rotation, maintaining the regular threshold configuration of the Chainlink services.
In summary, Chainlink and Base with their recent integration are taking a big leap in the crypto ecosystem, bringing forth the ease of cross-chain applications and rich diversity of networks. However, it is yet to be seen how this integration will stand up to the complexities and potential centralization criticism, particularly in a constantly evolving blockchain environment.
Source: Cryptonews
