Chainlink, Arbitrum Collaborate for Cross-Chain Solutions

Chainlink, Arbitrum Collaborate for Cross-Chain Solutions

Chainlink, Arbitrum Collaborate for Cross-Chain Solutions

Chainlink, a blockchain oracle network, has integrated the Ethereum layer-2 scaling protocol Arbitrum to facilitate the development of cross-chain decentralized applications.

On September 21, the two protocols announced the mainnet launch of the Chainlink Cross-Chain Interoperability Protocol (CCIP) on Arbitrum One, providing developers with access to Chainlink’s solution, which leverages Arbitrum’s high-throughput, low-cost scaling.

The combination of CCIP and the ecosystem of Arbitrum One seeks to enable a wide variety of use cases, including cross-chain tokenization and collateralization, blockchain gaming, data storage, and computation.

The chief business officer of Chainlink Labs, Johann Eid, commented on the partnership, highlighting Arbitrum’s role in alleviating transaction congestion from Ethereum’s base layer and providing a foundation for developing decentralized applications (DApps).

“CCIP now gives these users access to a highly secure and easy-to-use interoperability protocol built on Chainlink’s time-tested infrastructure, powering cross-chain smart contracts in a way that will open up new avenues of growth, accessibility, and innovation.”

The integration will marry Arbitrum’s optimistic roll-up technology, which presently commands around 60% of the total value locked in the wider Ethereum layer 2 ecosystem. Arbitrum enables rapid, low-cost off-chain transactions that are then submitted to Ethereum’s base layer.

The optimistic rollup is presumed to be valid until network validators demonstrate otherwise. In the meantime, CCIP enables developers to create cross-chain DApps that utilize arbitrary messaging and streamlined token transfers.

This utilizes Chainlink’s decentralized Oracle network, which enables smart contracts to access off-chain data sources, APIs, and payment systems securely.

The protocol enables smart contracts to interact with real-world data and events, allowing them to be triggered by external data.

Another prominent Ethereum scaling technology company, StarkWare, previously utilized Chainlink’s Oracle. In February 2023, StarkWare’s zero-knowledge proof roll-up protocol, StarkNet, integrated Chainlink’s data and price inputs into its ecosystem.

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