Token

Future

Revolution

Chainlink

<p style="text-align: justify">A commonly expressed sentiment among long-term investors is the focus on the real value creation of the invested project. In this field, <a href="https://en.coin-turk.com/this-altcoin-is-in-the-top-20-a-small-rally-could-push-its-price-to-8/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Chainlink</a> is a very remarkable project. For years, it has been providing infrastructure services to many popular crypto ventures. Its latest move seems to further enhance its dominance in its field.</p> 
<h2 style="text-align: justify" id="from-tcp-ip-to-ccip">From TCP/IP to CCIP</h2> 
<p style="text-align: justify">Tokenizing assets is expected to create a trillion-dollar market. This represents a major transformation. The Chainlink team took action because they wanted to be part of this transformation. The Chainlink Cross-Chain Interoperability Protocol (CCIP) allows <a href="https://en.coin-turk.com/major-defi-protocol-algofi-announces-cessation-of-operations-in-algorand-ecosystem/" data-wpel-link="internal" rel="noopener noreferrer nofollow">DeFi</a> applications to access users and be controlled from a single interface with other DeFi applications on different blockchains.</p> 
<p style="text-align: justify"><img decoding="async" class="size-full wp-image-239045 aligncenter" src="https://coin-turk.com/wp-content/uploads/2023/07/Chainlink-CCIP.webp" alt="" width="1536" height="864"></p> 
<p style="text-align: justify">CCIP also facilitates the seamless connection of existing financial systems to public and private blockchains, enabling the transition of existing assets and financial services on the chain. If successful, we can see trillions of dollars worth of new assets flowing into blockchain ecosystems.</p> 
<p style="text-align: justify">For all these reasons, the Chainlink team believes that CCIP is where the new transformation of the internet began, from TCP/IP to CCIP.</p> 
<h2 style="text-align: justify" id="the-defi-revolution">The DeFi Revolution</h2> 
<p style="text-align: justify">Over the past few years, the cross-chain ecosystem has experienced growing pains because previous cross-chain solutions were easily hacked due to poor design choices and other reasons. Approximately $2.6 billion has been lost in bridge hacks so far. What the market needs is a cross-chain solution with higher security, reliability, and usability standards.</p> 
<p style="text-align: justify">So how does Chainlink underestimate the potential risk of hacks? Or what does it rely on? In today’s blog post, they wrote the following:</p> 
<blockquote> 
 <p style="text-align: justify">“CCIP, led by a first-class research team, has rate limits on token transfers as a way to minimize potential damage. It has features that enhance security, such as the Active Risk Management (ARM) Network, an independent network that verifies cross-chain transactions for malicious activities. CCIP also introduces new standards for interchain reliability and usability by offering features such as Smart Execution, a fee payment mechanism that requires users to only pay on the source chain and CCIP takes care of the execution on the target chain.”</p> 
</blockquote> 
<p style="text-align: justify">Chainlink already provides price feeds to numerous protocols managing approximately $8 billion. As it has not encountered a serious problem so far, CCIP becomes even more exciting.</p> 
<h2 style="text-align: justify" id="the-future-of-tokenization">The Future of Tokenization</h2> 
<p style="text-align: justify">According to Bloomberg, tokenizing assets could increase their current value by 16-17 times. Hundreds of trillions of dollars flow through global financial markets. Universal and seamless connectivity between financial markets is a great value add for all participants. Services such as DTCC, Euroclear, and Swift are therefore widespread and important.</p> 
<p style="text-align: justify">Although 97% of institutional investors agree that tokenization will revolutionize asset management, there have been two obstacles to moving trillions of dollars worth of assets on the chain for a long time.</p> 
<h2 style="text-align: justify" id="the-future-of-chainlink">The Future of Chainlink</h2> 
<p style="text-align: justify">Chainlink explains the obstacles and how they can be overcome as follows:</p> 
<blockquote> 
 <p style="text-align: justify">“Legacy-to-blockchain connection: The ability to connect existing financial system’s core infrastructure to any blockchain.</p> 
 <p style="text-align: justify">Blockchain-to-blockchain interoperability: A highly secure communication standard that connects any public or private chain to another.”</p> 
 <p style="text-align: justify">CCIP addresses these challenges. In a recent collaboration announced with Swift, Chainlink CCIP enables end-to-end communication between legacy systems and blockchain networks, as well as interoperability between both public and private blockchains. More than a dozen major global financial institutions and financial market infrastructure providers, including DTCC, BNY Mellon, Citi, and Euroclear, are participating in the collaboration.”</p> 
</blockquote> 
<p style="text-align: justify">Jonathan Ehrenfeld, Head of Securities Strategy at Swift, said:</p> 
<blockquote> 
 <p style="text-align: justify">“This collaboration will also highlight the potential value of using a blockchain interoperability protocol to securely transfer data and value between legacy systems and potentially an unlimited number of blockchains.”</p> 
</blockquote> 
<p style="text-align: justify">In summary, with CCIP and the support of Chainlink’s partners, one of the biggest challenges of the future will be eliminated. Whether <a href="https://en.coin-turk.com/chainlinks-impressive-rise-link-price-surpasses-8/" data-wpel-link="internal" rel="noopener noreferrer nofollow">LINK</a> Token can increase its popularity and price will be revealed in time.</p> 
<h5>The post <a href="https://en.coin-turk.com/chainlink-from-tcp-ip-to-ccip-the-internet-of-contracts/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Chainlink: From TCP/IP to CCIP, the Internet of Contracts!</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal" rel="noopener noreferrer nofollow">COINTURK NEWS.</a></h5>

Chainlink: From TCP/IP to CCIP, the Internet of Contracts!

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