As a seasoned crypto investor who has witnessed the evolution of blockchain technology and its applications, I find the collaboration between Chainlink (LINK) and ZKsync incredibly exciting. This partnership represents a significant step towards bridging the gap between decentralized finance (DeFi) and traditional finance (TradFi), a goal that has long been pursued by industry pioneers like myself.
Chainlink, a decentralized oracle network, has extended its cross-chain compatibility to the zero-knowledge proofs platform, ZKSync. In simpler terms, this means that Chainlink is now able to communicate and interact with ZKSync in a more secure and private manner through the use of zero-knowledge proofs technology.
On September 16th, Chainlink (LINK) revealed that their Chainlink CCIP blockchain protocol is now active on the ZKsync (ZK) Era mainnet. This integration aims to boost the connectivity between decentralized finance (DeFi) and conventional finance by improving interoperability.
Connecting DeFi and TradFi
In simpler terms, CCIP on ZKSync aims to create a harmonious Layer 2 network within Ethereum (ETH). This initiative is also a significant step towards promoting the wider use of zero-knowledge technology in various applications, particularly those that combine decentralized finance with traditional finance systems.
As an analyst, I’m sharing some insights: Marco Cora, a director at the ZKsync Foundation, has expressed optimism about Chainlink CCIP’s launch on the ZKsync Era. He believes this move will spur additional growth in real-world asset tokenization. This enthusiasm arises as leading financial institutions globally increasingly embrace on-chain solutions.
Cora added:
As blockchains become more integrated into traditional finance, it’s crucial to establish clear and secure cross-chain protocols. With the addition of Chainlink CCIP, ZKsync offers an access point for traditional financial institutions to enter the blockchain space.
Marco Cora, director at the ZKsync Foundation
Developers working on ZKsync can now utilize a function that facilitates cross-chain transfers of tokens through smart contracts. By employing Chainlink’s customizable token transfer system, users can incorporate commands into the tokens being moved between blockchains, using smart contracts to establish a more integrated network of decentralized applications.
Interoperability helping tokenization market
CCIP’s launch on ZKsync’s follows Chainlink’s latest milestone in the tokenized assets market.
Following the collaboration with Fidelity International and Sygnum, this now reflects a state post-integration where net asset value (NAV) is recorded on the blockchain. This on-chain NAV enhancement significantly boosted Fidelity International’s $6.9 billion Institutional Liquidity Fund.
In simpler terms, the Innovative Liquidity Framework (ILF) – an initiative by RWA – facilitated Sygnum transferring $50 million from Matter Labs’ treasury reserves into the ZKsync network. Now, Chainlink and rival service Pyth Network are looking to expand their presence in the decentralized web3 sector following recent partnerships with Sony Group’s newly launched Layer 2 platform, Soneium.
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2024-09-16 18:36