Chainlink Partners with Ethereum Layer 2 Arbitrum for Cross-Chain DApp Development
Chainlink, the blockchain oracle network, has joined forces with Ethereum's layer 2 scaling protocol, Arbitrum, to facilitate cross-chain decentralized application (DApp) development.
The collaboration has resulted in the launch of the Chainlink Cross-Chain Interoperability Protocol (CCIP) on Arbitrum One's mainnet, which was announced on September 21st. This development grants developers access to Chainlink's solution integrated with Arbitrum's high-throughput, cost-effective scaling capabilities.
The combination of CCIP and Arbitrum One aims to unlock a wide range of use cases, including cross-chain tokenization, collateralization, blockchain gaming, data storage, and computation.
Johann Eid, Chief Business Officer of Chainlink Labs, emphasized Arbitrum's role in relieving transaction congestion on Ethereum's base layer and providing a foundation for DApp development. He 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."
This integration harnesses Arbitrum's optimistic rollup technology, which currently accounts for approximately 60% of the total value locked in Ethereum's layer two ecosystem. Arbitrum enables swift and cost-efficient transactions by batching them off-chain before submitting them to Ethereum's base layer.
CCIP, on the other hand, empowers developers to create cross-chain DApps that utilize arbitrary messaging and simplified token transfers. This leverages Chainlink's decentralized oracle network, enabling smart contracts to securely access off-chain data sources, APIs, and payment systems.
The protocol enables smart contracts to interact with real-world data and events, allowing them to be triggered by external data sources.
StarkWare, another prominent Ethereum scaling technology firm, had previously integrated Chainlink's oracle services. In February 2023, StarkWare's zero-knowledge proof rollup protocol, StarkNet, incorporated Chainlink's data and price feeds for its ecosystem.
This collaboration between Chainlink and Arbitrum represents a significant step in enhancing cross-chain interoperability and expanding the capabilities of decentralized applications in the blockchain space.