The trial will see SWIFT make cross-blockchain token transfers using the Cross-Chain Interoperability Protocol (CCIP). This will enable tokens to move between institutions, allowing them to experience the benefits of blockchain technology. According to SWIFT Strategy Director Jonathan Ehrenfeld Sole, SWIFT’s network includes over 11,000 banks worldwide. The announcement was made at Chainlink’s SmartCon22.
Chainlink’s relationship with SWIFT began after it won a startup challenge hosted by SWIFT and developed a proof-of-concept system for successful bond issuance and redemption.
Chainlink working on scaling ecosystem feasibly
While cross-chain bridges already allow token transfers between blockchains, they can pose significant security and user experience challenges. According to Chainalysis, compromised bridges accounted for more than $2 billion in lost funds in the first three quarters of 2022.
Through the CCIP, different blockchains can leverage each other’s strengths, including scalability, transaction throughput, or other features. Developers can deploy smart contracts that function essentially as multiple instances of executable code living on different blockchains. The smart contract code will be written to take advantage of each blockchain’s strengths.
In addition to the SWIFT announcement, Chainlink announced the launch of BUILD, an accelerator program for early-stage and established Chainlink ecosystem projects. Under the new program, Chainlink will provide technical assistance in exchange for network fees and contributions to its service providers.
The new Sustainable Chainlink Access for Layer 1 and 2 Enablement (SCALE) program will focus on developing blockchain and layer-two networks. This is while simultaneously helping the Chainlink ecosystem remain economically feasible. It enlists the help of DeFi protocols and different blockchains to do this.
So far, Aave, Moonbeam, Metis, and Moonriver have committed to paying costs associated with oracles to enable developers in their ecosystems to fast-track their dApp developments. Ultimately, Chainlink hopes to pass on oracle network operating costs to dApp users.
Oracle networks provide blockchains with information from the outside world to enable smart contracts to take appropriate actions.
Smartcon’s speaker roster
Chainlink annually hosts Smartcon to gather leaders in the Web3 space, including researchers, academics, and layer-one and layer-two blockchains. Included in the 2022 speaker roster are FTX CEO Sam Bankman-Fried, former Google CEO Eric Schmidt, and Balaji Srinivasan, who previously worked as CTO of Coinbase.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.