Chainlink released its Cross-Chain Interoperability Protocol (CCIP) 2.0 on Monday, delivering an upgrade to its communication and bridging infrastructure. The new version enables blockchains to communicate and swap funds; a key feature allows companies to add custom security checks to transfers.
This launch follows five months after the year's largest decentralized finance (DeFi) hack, which involved a rival bridge. Attackers drained $292 million in rsETH from Kelp DAO's bridge in April, a setup that ran on LayerZero and relied on a single verifier.
Blockchain bridges facilitate token movement between chains by using verifiers to confirm transactions on the originating chain before releasing funds on the destination chain. A compromised verifier allows attackers to withdraw funds that were never deposited.
LayerZero attributed the Kelp DAO incident to the use of a single verifier instead of multiple, though Kelp said LayerZero staff had reviewed its configuration without objection. CoinGecko data indicated nearly half of active LayerZero applications utilized the same single-verifier arrangement. Kelp DAO announced plans to move its rsETH to Chainlink.
CCIP 2.0, similar to LayerZero's architecture, permits companies to implement additional verifiers. These can be self-operated or outsourced to third-party providers such as Infosys and Nethermind. These custom verifiers operate in conjunction with Chainlink's default network, which consists of 16 independent node operators.
Chainlink's base network requires these 16 operators to reach a quorum on every transfer, establishing a baseline of distributed verification. Johann Eid, Chainlink Labs chief business officer, said, "Users shouldn't have to be cross-chain security infrastructure experts."
The upgrade also modifies Chainlink's previously promoted Risk Management Network, a separate set of nodes designed for double-checking transactions. This network no longer serves its original role, as Chainlink states its independent check functionality can now be provided by the optional custom verifiers.
This adjustment means that a user who does not add custom verifiers will rely on Chainlink's single default verifier network of 16 operators, where previously two distinct networks performed checks. Eid commented on legacy bridges, saying, "Historically, legacy bridges have lost billions due to insecure infrastructure, while in-house builds are slow and expensive."
Existing CCIP integrations remain compatible with version 2.0 without requiring changes. While Chainlink has not yet disclosed institutions utilizing the new verifier features, Aave and Maple have begun adopting other functionalities introduced by the upgrade.
Chainlink's native token, LINK, rose 12.10 percent, trading at $15.27. AAVE, the governance token for the Aave protocol, increased 13.76 percent to $167.48.
Chainlink, primarily known as an oracle network supplying external data like asset prices to blockchains, first launched CCIP in 2023 to facilitate token and message transfers between chains. The 2.0 release targets enhanced security and flexibility for cross-chain operations.
