- In a new development, Chainlink has unveiled Transporter, a cross-chain messaging app for bridging tokens built on its Cross-Chain Interoperability Protocol (CCIP).
- Chainlink’s Transporter will solve pressing security concerns around cross-chain crypto transfers.
Transporter Aims to Make Blockchain Transfers Safer
On Thursday, 11th April 2024, data provider Chainlink (LINK) unveiled its blockchain bridge application, Transporter.
The blockchain bridge will allow users to move crypto assets and data across various networks. Notably, the Transporter is available for both individual users and institutions.
It aims to foster a cost-efficient way of making high-value token transfers across blockchains with peace of mind.
For years, the blockchain industry has needed a secure way to move value and data across chains. Transporter makes it easier to utilize Chainlink’s CCIP security benefits for the transfer of large token values and critical messages across chains.
Chainlink co-founder Sergey Nazarov stated.
Remarkably, the first blockchains that would utilize Transporter include Arbitrum, Base, Avalanche, BNB Chain, Optimism, Ethereum, and Polygon.
This news marks the entry of Crypto’s key software platform, which connects blockchain rails with external data to the fast-growing blockchain bridges.
Fast-Growing Blockchain Bridges
With the crypto space ever-evolving, bridges are crucial to connecting the increasing number of people on the blockchain rails.
They allow individuals to transfer data and value between each other. Unfortunately, cross-chain bridges represent some of the most significant points of vulnerability in the crypto space.
Previously, Axie Infinity’s Ronin Bridge was exploited more than $600 million worth of cryptocurrency.
This was one of the most significant crypto exploits in history. It exploited a private key multi-signature scheme, a security measure that proved inadequate.
However, Transporter may override such circumstances as it is built on Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
This technology has been a critical component of Chainlink’s partnership with SWIFT, a network of banks that makes global transfers.
Impressively, the platform offers global support and a real-time visual tracker that follows the status of chain transfers.
The platform will charge standard fees for using CCIP, covering the cost of transactions on the desired blockchain and fees paid to CCIP service providers.
Nomatic, an early bridge user, believes the Transporter could quickly establish itself as the standard for cross-chain enablement for high-value use cases.
Previous Cross-Chain Vulnerabilities
According to DefiLIama data, existing bridges have transferred over $12 billion worth of assets across chains over the past month.
In any case, bridges are often targets of exploits and hacks, which can result in risks and losses for users.
Since 2016, decentralized finance (DeFi) protocols have been exploited for $5.85 billion. Cross-chain bridge hacks account for about 48% of the total value.
Chainlink’s Transporter will reduce these vulnerabilities by facilitating safer cross-chain transfers.
While the number of exploits has decreased since the beginning of the year, hackers are always looking for opportunities to exploit blockchain bridge vulnerabilities.
Recently, the Orbit Chain exploited $81 million worth of cryptocurrency due to cross-chain bridge vulnerability.
Will Chainlink’s Transporter reduce cross-chain vulnerabilities by facilitating safer transfers between institutions and retail users?
