A significant shift in the cross-chain landscape is underway as infrastructure firm BitGo announces its selection of Chainlink over LayerZero as its exclusive provider for wrapped bitcoin (WBTC).
The decision follows a substantial exploit affecting a project utilising LayerZero, specifically the Kelp DAO. The $292 million loss reported by the Kelp DAO underscores concerns regarding the security of certain cross-chain protocols. This incident reportedly prompted a widespread reassessment of bridge technology among digital asset firms.
BitGo is now adopting Chainlink’s Cross-Chain Token standard to standardize WBTC deployments. Various other projects, including the Kelp DAO, are reported to be migrating their infrastructure towards Chainlink’s CCIP protocol. These movements collectively represent an estimated $15 billion in value currently being transferred.
Wrapped bitcoin (WBTC) is a tokenised representation of bitcoin facilitating its use within decentralized finance applications. Its market capitalization stands at approximately $7.4 billion, according to CoinMarketCap. The total funds moving their cross-chain infrastructure to CCIP now amounts to roughly $14.6 billion.
The move signifies a broader trend amongst crypto firms seeking more secure and robust solutions for bridging assets across different blockchain networks. Chainlink’s decentralized oracle network is increasingly viewed as a safer alternative, particularly following the vulnerabilities exposed by earlier LayerZero implementations.
Written by Timothy Mason
Altcoins Desk
