u.today
The position of Chainlink as the first and most robust Oracle service in the blockchain ecosystem is about to be solidified following the launch of its core productivity tool, the Cross-Chain Interoperability Protocol (CCIP), on the mainnet.
Chainlink CCIP benefits
While the overall function of the Chainlink CCIP is to enhance the efficiency of its operations, it generally brings to life a number of additional benefits targeted to users across the board. One key role the CCIP will play is to help bring together the complex and numerous Layer 1 and Layer 2 protocols, as well as emerging sidechains and subnets.
As detailed by top Chainlink educators, data and value must flow freely to truly interoperate, a function that the CCIP is now designed to play to boost its existing capabilities.
2/ Web3 today consists of hundreds of independent L1 chains, L2 rollups, appchains, sidechains, subnets, and more launching every week
— ChainLinkGod.eth (@ChainLinkGod) July 18, 2023
To create a truly interoperable Web3 ecosystem, data and value needs to be able to move seamlessly between chains
This is where bridges come in
The emergence of CCIP will also help to mitigate the security challenges associated with cross-chain bridges in the Web3.0 world. With more than $2.6 billion exploited in DeFi bridges to date, the CCIP, with its advanced securities capabilities, will find robust use.
The creation of a sophisticated tool like the CCIP is expected to come with a complex user experience; however, the reverse is the case. The CCIP comes with a simple plug-and-play solution to transfer tokens on-chain. The protocol's advantages are innumerable, and other side perks include Timelocked upgradability, smart execution, Active Risk Management (ARM) and programmable token transfers.
Impact on LINK
The entirety of the Chainlink CCIP launch on the mainnet is driving a very unique surge in the value of the LINK token. At the time of writing, LINK is changing hands at a price of $7.10, up by 7.02% over the past 24 hours.
The growth of LINK becomes more appreciable when the performance of other top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) is brought into focus. While LINK is up today, Bitcoin is down by 0.78%, and Ethereum has plummeted by 1.20%.
The sentiment surrounding the CCIP is driving the LINK surge with further upside in the long term.