How Astar's recent chainlink integration supercharges the ecosystem

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Hey guys, was reading through Astar Network’s recent Chainlink integration and my interest got piqued. Not sure if ya’ll went through it too but I just wanted to share my inputs on it.

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I think the integration supercharges the entire Astar ecosystem because it allows developers from all other protocols to easily allow cross-chain interoperability with Astar Network.

Back in 2020, Ethereum’s market share in TVL was 95%. Today, it is roughly 60%. A majority of this volume has seeped into various alt L1s and L2s. And now with the rise of several L1 and L2 solutions, this fragmentation in TVL will continue.

This means we need infra that facilitates interoperability among various dApps and chains. If not, it leaves users with a bad UX. Imagine the huge opportunity costs that users incur if there are no safe interoperable solutions to help them interact between dApps across multiple chains.

So how do we fix it? Do we build bridges that allow users to transfer assets between various chains? Bridges help but they aren’t enough. Moreover, bridges often suffer from security issues. We need a more robust solution that allows dApps and chains to seamlessly interact with each other.

And that’s where ChainLink’s CCIP comes in. It stands for Cross-Chain Interoperability Framework. You can think of it is as the infrastructure that helps any protocol go cross-chain.

Picture this.

You’re on Chain A. You want to burn Token A on Chain A and mint Token B on Chain B. The two chains are different and hence you can’t do it.

CCIP comes in and establishes a lane between Chain A and Chain B. And it sets up contracts on both the chains to ensure that the messages are transferred in between.

What CCIP basically achieves is one thing: It allows any chain that connects with Chainlink to go cross-chain instantly. And this architecture is highly decentralized too.

Astar is at the centre of innovation within APAC. It is one of the biggest projects coming out of Japan and its unique dApp staking feature helps it stand out. By integrating CCIP, Astar opens itself up to developers across the entire web3 ecosystem. A developer on any chain can come in and extend their application on Astar Network.

Astar users stand to make the most out of this. Imagine all your favourite applications on other chains: thanks to CCIP integration, they’ll be available on Astar Network too! This opens a trillion-dollar opportunity for Astar Network and its users.

Currently, bridges process only 0.2% of the overall TVL in DeFi. Only a fraction of this is bridged to Astar Network. Thus, the CCIP integration unlocks the opportunity to port over billions of dollars worth of liquidity to the Astar Network. This benefits the Astar protocol as it brings in fresh capital and aids in growth. It also benefits users as they get access to the same dAps they are used to using on other chains.

Would love to know what you guys think especially on how this integration aids in interoperability between Astar Network and other networks!

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Chainlink CCIP will be the standard for cross-chain transfers between tradfi - CLL works with SWIFT (Standard messaging network for 11K+ banks), DTCC, Euroclear, Clearstream, ANZ, Citi, BNY Mellon, BNP Paribas, Lloyds Banking Group, and SDX… we are talking about QUADRILLIONS!!!

This shows the potential of onchain transfers that the entire basket of crypto and tokenized assets can be transferred and traded between public blockchains and private blockchains (bank chains)

Astar has a huge potential through the joint work with the Japanese government and the Japanese CBDC to be at the epicenter of this movement.

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As you rightly mentioned, this new integration of Chainlink CCIP with the Astar EVM secured by Polkadot protocol is ultimately the gateway to endless high-value dApps that can move a lot of liquidity to the Astar protocol, which would generate huge traction towards our ecosystem.

My thoughts regarding this topic are simple and short: this will attract huge potential to the Astar EVM protocol, in the coming months we will probably see a high demand for dApps and liquidity wanting to join our ecosystem.

Also, in a couple of weeks we will kick off a Mexico hackathon where Astar will be the official sponsor, check it out here! Of course, we will use CCIP at Astar.

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Hi @psneemo glad to see various analyses for different topics yet important in general. Now then it is even more crucial that decent infrastructure / UIUX should be provided to the devs from other protocols/chains.

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Hello dear friend,
After contacting my friend from the Chainlink core team, I wrote an article about this integration. You can review it:

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Spot on! I think more than just the Japanese government, the interoperability that Chainlink unlocks leads to billions of dollars of liquidity to flow seamlessly. Right now, that number is not even $500M a day. With the right strategy to acquire users that can go up to billions of dollars a day. Super pumped to see how this unfolds in future

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Thank you for your comment! And thanks for sharing the proposal, I’ll definitely check it out :muscle:

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tyty! doing my bit to learn from people here and also share my insights and experiences :slight_smile:

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hey this is great! thanks so much for sharing; I’ll definitely check this out

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Thank you for sharing @Leo,
I am aware that you started this initiative early on. I respect that move and have learned from it.
It seems like an ambassadorial activity that leads to many projects and the future growth of the Astar ecosystem

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That’s a great topic. I agree with pitcoin’s opinion that Chainlink CCIP will likely become the standard protocol. This integration will have a significant impact on the ecosystem.

By continuing to discuss this topic, I believe we can develop concrete use cases for CCIP. I’m eager to engage in that process.

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CCIP standar (if all implemented) will practically blurring the lines between networks, it should create an effect like common users experienced when they are browsing through sites, we dont care which server we used. Or like normies when they are doing online shopping, dont care which payment services they use as long it supports mastercard/visa.

But isnt it will create a risk, if there’s anything happens on CCIP. One bug can effect all the networks/chains that are connected with.

For now, blockchains are relatively secured because it actually seperated between each other (silos), but this brings very bad UX for normies

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What topics do you propose buddy? We will soon have an Astar Network hackathon in Mexico and I find it interesting to know your ideas.

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I very much agree with this point, however in my limited knowledge it is my understanding that this is why CCIP works in a “decentralized” way (not entirely but yes), basically it all depends on the security flaw but remember that the bad creation of a smart contract would not exactly be a CCIP problem.

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I think this integration paves the way for Astar towards the multichain, being able to transfer assets from one chain to another without the need of bridges gives a tremendous security plus, due to the security breaches that traditional bridges generally suffer, forming a chain loop around Astar thanks to CCIP is a giant step.

Developers now have a great opportunity here, everything behind the scenes is being prepared to make dApps more effective, it is up to the developers to create UI/UX capable of being intuitive and simplified, allowing an improved and uncomplicated navigation, for me the user experience is predominant and must be taken very seriously, so they will come en masse, Make it Simple! that’s my motto.

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I wish we could see more RWA on Astar… that’s something I really miss on our chain.

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Thanks for asking me @Juminstock !!
I’m interested in cross-chain governance. I think that if we could use CCIP to enable voting with governance tokens located on different chains, it might increase the value and liquidity of those tokens.

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@bao
It’s a good idea to increase participation in our governance, but what will incentivize new users to do so? What incentive model do you propose?

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We are trying to do an RWA project with coffee farming, but the legal issues have been very difficult, so we are still working on it. :face_exhaling:

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That’s an interesting idea. Could you briefly explain it, if possible? It might be helpful for me to learn about it. =)