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- 1 The decentralized oracle Chainlink has partnered for the ETH Layer-2 scaling protocol Arbitrum.
- 2 With this partnership, cross-chain dApp development will become much easier.
- 3 The developers will be able to deliver faster transactions and better functionality with this mainnet.
Chainlink is a decentralized blockchain oracle that provides industry-standard Web3 services. It connects people and businesses and lets them thrive in this burgeoning space. The network makes the transfer of off-chain sources and tamper-proof data to on-chain smart contracts. Recently, the platform announced an initiative that will take its endeavors even further.
An Effort to Facilitate Cross-Chain dApp Development
Chainlink will use the Ethereum Layer-2 scaling protocol Arbitrum to make cross-chain dApp development easier. On September 21, both protocols announced the launch of their mainnet. It would be called the Chainlink Cross-Chain Interoperability Protocol (CCIP). The purpose-built service will give developers access to low-cost scaling while letting them achieve high throughput.
Experts say that the combination of CCIP and Arbitrum One will revolutionize cross-chain development. It would be very helpful in computation, data storage, blockchain gaming, tokenization, and collateralization. On the occasion, the Chainlink Labs Chief Business Officer Johann Eid also shared his views. He said that Arbitrum has shown exceptional capability in offloading transaction congestion.
It gave a solid base to decentralized applications (dApps) while making Ethereum’s base layer stronger. This collaboration enables CCIP to deliver a highly secure and easy-to-use interoperability to the users. It would also empower the cross-chain smart contracts to gain more accessibility and innovation.
Arbitrum’s optimistic roll-up technology commands 60% of the total value locked in the Ethereum Layer-2 ecosystem. This technology facilitates low-fee transactions with faster speed. Moreover, the rollup stays valid until validators prove otherwise. On the other hand, CCIP lets developers build cross-chain dApps with arbitrary messaging systems. It also simplifies token transfers with a streamlined smart contract system.
The protocol facilitates the communication between smart contracts and real-time data. It also interprets the information obtained from external sources. Notably, Arbitrum isn’t the only platform that has tapped this ETH scaling protocol. Starkware is another Ethereum scaling firm that was associated with Chainlink’s Oracle solutions earlier.
Starkware brought its zero-knowledge proof roll-up protocol and integrated it with Chainlink’s data and price feed. So far, the tie-up has worked perfectly well for the crypto space.
Why is it Significant for Crypto Space?
The main reason is that cross-chain dApp development faces quite a few issues right now. Developers who work on these projects come across many limitations. No matter the protocol they use, they encounter the most complex problems.
Now, these problems are solved only when the development structures make themselves expendable. So, these partnerships actually work for developers working in space.
Ethereum provides the most favorable space for developing decentralized programs. However, the ecosystem faces scalability issues widely especially when it comes to the transition of resources from on-chain to off-chain systems. More often than not, the solutions to these problems often lie in other protocols. Many other protocols have exclusively focused on scalability rather than functionality.
Therefore, it is certainly good news for the developers and the whole blockchain community. The analysts are expecting more such partnerships to happen in the future.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
