According to a. Shiba Inu has entered into a strategic partnership with Chainlink press release published in SHIB magazine. As part of this alliance, Shibarium, Shiba Inu’s Layer 2 (L2) blockchain network, is integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as its canonical cross-chain communication infrastructure, along with adopting the Cross-Chain Token (CCT) standard for its native assets SHIB, BONE and LEASH.

What does Shiba Inu and Chainlink mean

“We are happy to announce that Shiba Inu and Chainlink are partnering to develop the Shiba Inu ecosystem,” reads the official press release. “Shibarium has integrated the Chainlink standard for blockchain interoperability as its canonical cross-chain infrastructure.” This move enables the Shiba Inu ecosystem resources to be deployed across 12 blockchains.

Shibarium is built on Ethereum with a focus on scalability, speed, and cost efficiency. By adopting the CCT standard, the Shiba Inu ecosystem can now facilitate token transfers using a lock-and-mint mechanism for bridging with Ethereum and a burn-and-mint mechanism for cross-chain transfers off Ethereum. These approaches aim to provide a controlled, secure and verifiable means of transferring value across multiple networks, all powered by Chainlink’s CCIP technology.

Johann Eid, Chief Business Officer at Chainlink Labs, emphasized the importance of the partnership in expanding Shibarium’s cross-chain capabilities. “We are excited to partner with Shiba Inu and develop its ecosystem together,” said Eid. “The integration of Chainlink CCIP as Shibarium’s canonical cross-chain solution and Shiba Inu’s adoption of the CCT standard will enhance its capabilities and lead to broad adoption of its ecosystem.”

Kaal, lead Shiba Inu developer, emphasized the importance of adopting the CCIP and CCT standard: “By collaborating with Chainlink, we are not just choosing an industry standard – we are charting a bold modern course for the Shiba Inu ecosystem. By integrating CCIP and the CCT standard, SHIB, LEASH and BONE will span multi-chain for the first time with unmatched security, reliability and built-in recording mechanisms.

From a technical perspective, Chainlink CCIP is designed to provide decentralized cross-chain communications, secure token transfers, and programmability. The protocol’s security model leverages Chainlink’s Decentralized Oracle Networks (DON) to protect tokens and data as they move between chains. According to the announcement, Chainlink’s infrastructure has historically secured over $75 billion in total DeFi value locked (TVL) at its peak and has enabled over $17 trillion in on-chain transactions since the beginning of 2022.

In addition, Shiba Inu will also integrate Chainlink data streams for high-quality, high-frequency, low-latency market data. “Chainlink data streams deliver the highest quality, high-frequency data […] with advanced features such as liquidity-weighted bid-ask spreads and sub-second execution speeds,” reads the press release. The goal is to make more sophisticated decentralized finance (DeFi) applications available on the Shibarium platform, potentially attracting investors and liquidity providers looking for reliable and see-through data sources.

As detailed in related article according to SHIB magazine, the overarching vision behind this move is to create a more animated, interconnected blockchain environment. By leveraging Chainlink’s CCIP, Shibarium aims to connect to the broader “crypto universe” and facilitate the secure transfer of its ecosystem tokens across multiple chains.
It is worth noting that this cross-chain expansion also introduces a deflationary mechanism whereby transaction fees on various supported chains are consolidated and used to “burn” tokens, potentially impacting the SHIB, BONE and LEASH tokenomics in the long term.

Chainlink’s CCIP capabilities, including arbitrary messaging and programmable token transfers, enable developers to build native multi-chain applications that support NFTs, lending protocols, and other data-driven features. This technological convergence represents an attempt to transform Shibarium from a single-chain solution to a tough multi-chain network that can support diverse and sophisticated DeFi markets.

The ultimate impact of this multi-network expansion will depend on developer adoption, user engagement, and the response of the broader DeFi market. While the outcome remains to be seen, the purpose of the partnership is clear: to foster innovation, encourage widespread adoption of Shibarium tools, and establish the Shiba Inu ecosystem as a pioneering force in cross-chain interoperability and decentralized finance.

As Kaal noted, “This milestone paves the way for more innovative multi-chain applications, driving broader adoption and ushering in a new era of growth and opportunity for the Shiba Inu ecosystem.”

At press time, SHIB’s share price was $0.00002218.

Featured image created with DALL.E, chart from TradingView.com