CCIP: Chainlink Crosschain Protocol is live

The Chainlink Cross-Chain Interoperability Protocol (CCIP) is live. Initially in early access, the cross-chain network operates on Avalanche, Ethereum, Optimism and Polygon. The goal was to make cryptospace interoperable. They wanted cross-chain exploits to be a thing of the past, Chainlink said.

"Just as Web2 needed TCP/IP to connect isolated islands of computer networks, Web3 needs an interoperability standard to connect islands of blockchain networks," the company said. Chainlink's claim is to provide that interoperability standard.

LINK is trading at $7.10 at the time of writing, up just over 6 percent. The cross-chain token transfer is to take place via so-called Simplified Token Transfers. The mechanism is again monitored by the so-called Active Risk Management (ARM) Network and is sufficiently secure, according to Chainlink. One use case of CCIP is cross-chain lending. Users can deposit collateral on one blockchain and take out a DeFi loan on another blockchain.