Chainlink Launches Protocol on Ethereum layer 2 Arbitrum

Chainlink and Arbitrum team up to promote cross-chain DApp development. The launch of CCIP on Arbitrum One offers developers access to Chainlink's solutions.

Sep 22, 2023 - 15:53
Oct 19, 2023 - 14:17
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Chainlink Launches Protocol on Ethereum layer 2 Arbitrum
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Chainlink, a blockchain oracle network, has joined forces with Arbitrum to promote the development of cross-chain DApps. This collaboration was marked by the mainnet launch of the Chainlink Cross-Chain Interoperability Protocol (CCIP) on Arbitrum One on September 21. This launch provides developers with access to Chainlink's robust solutions, leveraging Arbitrum's attributes of high throughput and cost-effective scaling.

The synergy between CCIP and Arbitrum One's ecosystem is poised for many use cases. These range from cross-chain tokenization and collateralization to blockchain gaming and advanced data storage and computation functionalities.

Johann Eid, Chainlink Labs' Chief Business Officer, expressed his views on this partnership. He emphasized Arbitrum's significant contribution in alleviating transaction congestion from Ethereum's foundational layer, offering a robust platform for DApp creation. Eid stated:

"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." 

Arbitrum's optimistic rollup technology, which currently holds approximately 60% of the total value in the broader Ethereum layer-2 ecosystem, is a key feature of this integration. This technology facilitates rapid and affordable transactions, which are grouped off-chain before being relayed to Ethereum's foundational layer. The optimistic rollup operates on a principle where it's deemed valid until challenged by network validators.

Conversely, CCIP empowers developers to craft cross-chain DApps that utilize arbitrary messaging and streamlined token transfers. This is further enhanced by Chainlink's decentralized oracle network, which allows smart contracts to securely connect with off-chain data sources, APIs, and payment systems.

One of the standout features of this protocol is its ability to enable smart contracts to interact with real-world data and events. This means that these contracts can be activated by data from external sources.

It's worth noting that Chainlink's oracle services are not new to integrations. StarkWare, a notable Ethereum scaling technology firm, had previously integrated Chainlink's data and price feeds for its ecosystem in February 2023, utilizing StarkNet's zero-knowledge proof rollup protocol.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.