Celo Implements Chainlink’s CCIP. The CCIP protocol from Chainlink is useful in this situation. For public blockchains and even more conventional financial architecture, it provides a kind of “layer 0” protocol for communicating across chains. Chainlink and SWIFT, the global messaging standard for interbank communication, ran a successful pilot test in 2023. Along with the Depository Trust and Clearing Corporation (DTCC) and many banking partners, including JP Morgan and BNY Mellon, the Oracle Network and Interoperability Protocol also carried out a comparable experimental test to move real-world assets onto the blockchain.
Chainlink’s trials with SWIFT and the DTCC show that blockchain technology, conventional banking, and international trade could all collaborate more effectively.
Chainlink’s CCIP Protocol
The CCIP protocol from Chainlink is useful in this situation. For public blockchains and even more conventional financial architecture, it provides a kind of “layer 0” protocol for communicating across chains.
Chainlink and SWIFT, the global messaging standard for interbank communication, ran a successful pilot test in 2023. Along with the Depository Trust and Clearing Corporation (DTCC) and many banking partners, including as JP Morgan and BNY Mellon, the Oracle Network and Interoperability Protocol also carried out a comparable experimental test to move real-world assets onto the blockchain. Chainlink’s tests with SWIFT and the DTCC have demonstrated the potential synergies between blockchain technology, conventional banking, and international trade.
Problems with Cross-border Transactions
At the present time, due to the abundance of intermediaries, cross-border transactions are slow, expensive, and inefficient. Every party involved in the transaction—the payment processor, the bank, the credit card company, and the information processor—adds their own cost and slows it down. In addition, smaller players are unable to conduct business globally due to the regulatory compliance process, which slows down transactions with inefficiencies and expensive costs, preventing them from reaching a finality.
Traditional bank transactions can take days to post since many businesses are still using antiquated technologies in this digital age. Simple domestic transactions that do not include cross-border transmission are likewise subject to this.
