Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is now live on ZKsync, a layer-2 (L2) scaling solution that uses zero-knowledge (ZK) proofs.
ZKsync uses ZK technology to improve network security, privacy, and scalability while abiding by Ethereum’s security standards.
The integration of Chainlink’s CCIP on ZKsync’s Era mainnet marks a milestone for the L2 chain’s interoperability and operation of decentralized applications (DApps).
Developers on ZKsync can now build DApps that can operate across multiple blockchain networks through this cross-chain interoperability integration.
Related: Synthetix to add Chainlink when v3 exchange launches on Arbitrum
Developer implications
Through the new CCIP integration, developers can utilize programmable token transfers to send tokens cross-chain while embedding instructions for smart contracts on receiving chains.
CCIP’s arbitrary messaging capabilities allow developers to create cross-chain smart contracts to transmit data and function calls between smart contracts on different blockchains.
These new features have implications for enabling more complex and potentially efficient DApp establishments as the blockchains become more interlinked.
Related: Chainlink integration adds transparency to 21Shares Ether ETF
Asset tokenization and cross-chain finance
The collaboration between Chainlink and ZKsync follows the growing trend of financial institutions moving onchain through asset tokenization.
Marco Cora, director at the ZKsync Foundation, reinforced this point, stating that “the tokenization of real-world assets is growing rapidly.”
“The need for transparent and secure cross-chain standards becomes paramount to grow the adoption of blockchains in traditional finance.”
Cora explained that through this integration with Chainlink CCIP, ZKsync will be able to provide “a gateway for these institutions to come onchain.”
Related: Chainlink’s tokenization sandbox cuts trials to days instead of months
Chainlink industry standard inspires competitors
According to a press release shared with Cointelegraph, Chainlink is dubbed “the industry-standard decentralized computing platform,” but for how long?
The decentralized network faces increased competition in the oracle market from platforms like Pyth and WINkLink as Chainlink’s market dominance slips over the year.
Chainlink started the year on Jan. 1 with a dominance of 48.64% in the Oracle market but has fallen to 46.46% amid its competitors’ rise in market share.
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