USDC stablecoin is on the brighter side of the news spectrum today, April 26, as founding firm Circle hit a milestone with the launch of the Cross-Chain Transfer Protocol (CCTP) on Ethereum and Avalanche.
The announcement, made on Circle’s official social media, will mark a new dawn of interoperability across blockchain ecosystems. However, what is the cross-chain circuit transmission protocol? Are there advertising reasons behind this ad?
Everything you need to know about the USDC cross-chain circuit transfer protocol
Circle Official Website The Chain Transfer Protocol is defined as an on-chain utility and permissionless service that facilitates stablecoin transfers between blockchains via two mechanisms, the burning and minting of this digital asset.
Circle’s cross-chain transfer tool protocol is packed with powerful solutions that address issues of liquidity fragmentation and poor user experiences associated with unofficial versions of USDC on different blockchain ecosystems.
Before CCTP was launched on the mainnet, Avalanche users looking to transfer USDC stored on Ethereum had to use an unofficial or third party bridge to transfer the stablecoin between networks.
With the launch of the Cross-Chain Transfer Protocol, Ethereum and Avalanche users can now fully benefit from the circuit’s stablecoin and become less dependent on unofficial and potentially insecure third-party bridges and services.
Circle’s new development and innovation will standardize its Web3 stablecoin liquidity and support simple and secure payment transactions for the user. It will also connect and standardize blockchain networks, enhancing blockchain interoperability.
Leveraging Circle’s Chained Transport Protocol – How it works
On April 13, 2023, the Circle team released a demonstration video on the official youtube platform page, showing users and the public how the transmission protocol works.
A demo video on Youtube shows that the cross-chain transfer protocol burns first, then issues tokens, unlike third-party bridges, which often lock funds on one blockchain and issue them on another. This method has been effective but not safe for the past few years.
In taking advantage of Circle’s cross-chain transfer protocol, users must initiate a USDC transfer through an integrated platform or wallet, such as Metamask. Next, the user specifies the wallet address in the destination chain, after which the gateway/bridge copies the stablecoin into the source chain.
Circle then certifies the burn event on the source chain and provides a burn certificate and authorization for the decentralized application of the USDC amount on the destination chain. Then, the destination chain sends the stablecoin to the recipient.
Joao Reginatto, Vice President of Product for Circle, has created a blog mail It states that the cross-circuit protocol is “the most ambitious part of the market-neutral infrastructure.” Joao further said that ecosystem and infrastructure developers have shown support by integrating CCTP into their platform operations.
Some of the notable platforms that integrate CCTP include Metamask, Celer Network, LayerZero, Multichain, and Wanchain.
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