In the official announcement made by Chainlink (LINK) altcoin developers, the new feature of the platform was introduced.
According to the developers' own statement, the feature, called Cross-chain Interoperability Protocol (CCIP), will allow users and developers to transfer tokens and data between different blockchains with minimum friction and maximum security, increasing interoperability between blockchains.
CCIP leverages Chainlink's oracle technology to provide a unified interface for cross-chain communication. Using 'lock and mint' or 'burn and release' mechanisms, users can easily move tokens from one chain to another and add random data commands to trigger smart contract logic on the target chain.
CCIP also includes several layers of protection to ensure the integrity and security of cross-chain transactions. These include the Active Risk Management (ARM) Network, which monitors and responds to potential threats, and transfer rate limits that prevent malicious people from draining liquidity pools or spamming networks.
Also, according to the developers' statement, CCIP uses a gas-locked fee payment mechanism that guarantees the execution of the transaction regardless of network congestion or gas price increases in the target chain.
According to Chainlink, CCIP is extensible and future-proof; that is, it will support new blockchains, functions and security approaches as they emerge. The feature is currently live on Ethereum and Polygon, and is planned to expand to other chains in the near future.
*Not investment advice.