2/ What is CCIP?
CCIP enables smart contracts to interoperate across all public and private blockchain networks.
CCIP enables smart contracts to interoperate across all public and private blockchain networks.
3/ Cross-Chain Interoperability Protocol (CCIP) provides a universal, open standard for developers to build secure services and applications that can send messages, transfer tokens, and initiate actions across multiple networks.
4/ Why do we need CCIP?
It is clear now that we are going to live in a multi-chain world.
CCIP allows developers to build secure cross-chain applications quickly.
The quickly bit is important here.
It is clear now that we are going to live in a multi-chain world.
CCIP allows developers to build secure cross-chain applications quickly.
The quickly bit is important here.
5/ Time and time again Chainlink have proven that if you abstract away complexity for developers that rapidly increases the speed of innovation.
6/ There is extensive fragmentation in token bridges and messaging protocols, most being application-specific services between two distinct chains.
7/ Additionally, many bridges are fairly centralized with weak security guarantees, lack transparent or reliable node operators, and drive up costs and processing times for end-users.
8/ These limitations and vulnerabilities have already resulted in exploitation to the tune of tens of millions of dollars in funds lost, stunting cross-chain innovation
9 / With a universal messaging interface, smart contracts can communicate across multiple blockchain networks, eliminating the need for developers to write custom code for building chain-specific integrations.
10/ How does CCIP work?
A smart contract from source chain invokes Chainlink's Messaging Router, which will leverage Chainlink DONs to securely send the message to the destination chain, where another Messaging Router validates it and sends it to the destination smart contract.
A smart contract from source chain invokes Chainlink's Messaging Router, which will leverage Chainlink DONs to securely send the message to the destination chain, where another Messaging Router validates it and sends it to the destination smart contract.
11/ What are some use cases?
Cross-chain yield harvesting
Optimized yield harvesting by farming and aggregating across multiple blockchain networks that provide the highest returns on assets.
Cross-chain yield harvesting
Optimized yield harvesting by farming and aggregating across multiple blockchain networks that provide the highest returns on assets.
12/ Cross-chain collateralized loans
Collateral can be deposited in a smart contract on a source blockchain, while allowing users to borrow a token on a higher-throughput destination chain.
Collateral can be deposited in a smart contract on a source blockchain, while allowing users to borrow a token on a higher-throughput destination chain.
13/ Low-cost transaction computation
Transaction data can be processed on a high-throughput chain where the results of the computation are bridged to a higher-cost trusted chain for settlement.
Transaction data can be processed on a high-throughput chain where the results of the computation are bridged to a higher-cost trusted chain for settlement.
14/ New kinds of DeFi applications
Cross-chain services open-up a new category of DeFi applications that can be built by developers for the multi-chain ecosystem.
Cross-chain services open-up a new category of DeFi applications that can be built by developers for the multi-chain ecosystem.
15/ What is Programmable Token Bridge?
It allows developers to build applications (e.g., wallets) that can transfer tokens and initiate programmable actions on the destination chain, allowing development of new types of cross-chain token-based applications.
It allows developers to build applications (e.g., wallets) that can transfer tokens and initiate programmable actions on the destination chain, allowing development of new types of cross-chain token-based applications.
16/ Programmable Token Bridge supports both minting and burning and locking and unlocking of ERC-20 tokens.
17/ Why is Programable Token Bridge important?
It provides the ability to transfer tokens to any Chainlink-integrated blockchain network across EVM and non-EVM chains, eliminating the need for developers to build separate bridges for inter-connectivity between individual chains.
It provides the ability to transfer tokens to any Chainlink-integrated blockchain network across EVM and non-EVM chains, eliminating the need for developers to build separate bridges for inter-connectivity between individual chains.
18/ How is CCIP secure?
The Anti-Fraud Network monitors the Chainlink network for nefarious cross-chain activity and automatically pauses its services to protect users when malicious activity is detected.
The Anti-Fraud Network monitors the Chainlink network for nefarious cross-chain activity and automatically pauses its services to protect users when malicious activity is detected.
19/ Which protocols will be using CCIP?
So far we know @CelsiusNetwork with $16B+ in digital asset holdings and 800k+ users—plans to leverage the Cross-Chain Interoperability Protocol (CCIP) within yield generation activities.
So far we know @CelsiusNetwork with $16B+ in digital asset holdings and 800k+ users—plans to leverage the Cross-Chain Interoperability Protocol (CCIP) within yield generation activities.
20/ @AaveAave announced their v3 protocol plan yesterday which will utilise CCIP. Portals will allow a user’s supplied liquidity to be transferred from one network to another.
21/ We also know @ensdomains will integrate CCIP into their project to support the issuance of on-chain domains on layer-2 networks.
22 🦆/ In summary:
CCIP is built on Chainlink's battle-tested DONs that are powered by OCR 2.0 and Anti-Fraud Network.
Developers can now build dApps, token bridges, or wallets to securely interoperate across blockchain networks.
CCIP is built on Chainlink's battle-tested DONs that are powered by OCR 2.0 and Anti-Fraud Network.
Developers can now build dApps, token bridges, or wallets to securely interoperate across blockchain networks.
23/ We wouldn't bet against CCIP becoming a global open source standard.
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