Chainlink has laid down ways in which it is aiming to boost CCIP adoption. One, the plan is to rely on cross-chain transfer, not solely though. Second, implement an optimized pricing method. While cross-chain transfer comes as a boon for ETH and other token transfers, optimized pricing is aimed at bringing down per-user cost on the network.
The upgrade especially includes the ability to move ETH between other blockchains such as Arbitrum and Ethereum, among others. The pricing model, on the other hand, is expected to boost transaction volume, cross-chain adoption, and high-value use cases. In the end, Chainlink has its sights set on becoming the leader in the industry for cross-chain interoperability. Developers get enhanced flexibility, and users gain access to broader choices at the time of executing the transfer of tokens.
Chainlink is bringing more liquidity for cross-chain operations via the Lock and Unlock mechanism. It introduces a way to transfer any token of one’s choice securely.
It works in two steps – first, it locks on a source chain and then releases an amount equivalent to that value on a destination chain. It essentially blends Burn & Mint and Lock & Mint models. Chainlink posted about it on X and received favorable feedback from the community. The example of moving Ethereum’s ETH to Arbitrum helps to clarify it even more clearly. The mechanism first wraps ETH to WETH and locks it on Ethereum, with an equivalent amount of WETH being unlocked on L2. It is then unlocked to native ETH.
Chainlink plans to extend the support to other tokens in the times to come. The optimized pricing model is based on transitioning to a flat fee premium model. This marks the transition for Burn & Mint and Lock & Mint by having the total fees being a combination of gas costs and additional premium.
With these developments, CCIP is becoming one of the most cost-efficient solutions for transferring tokens. Moreover, when the transaction volume rises, Chainlink hopes to test the security measures of CCIP.
Chainlink’s LINK is reflecting the sentiments. It has increased by 1.55% in the last 24 hours and is listed at $17.73. The token is also up by 3.555 in the last 7 days and 146.47% in the last 365 days. However, it has lost weight by 13.42% in the last 30 days. That said, ETH has fallen by 1.51% in the last 24 hours but has gained 7.60% in the last 7 days. It is exchanging hands at $3,516.72.
Chainlink accelerating CCIP adoption carries forward the momentum for the cross-chain standard. Notable personalities like Arthur, the Co-Founder of XSwap, have applauded the move. Arthur, for one, has said that CCIP is now serving as the bedrock of XSwap by providing unparalleled security guarantees to users.
Moving forward, how many more tokens Chainlink integrates into the cross-chain mechanism remains to be seen.
Source: https://www.cryptonewsz.com/chainlink-banks-on-cross-chain-transfer-and-optimum-pricing-to-drive-adoption/