Circle Plans CCTP Launch on Solana to Allow Users Move Solana-based USDC to Other Chains
Circle plans to launch its CCTP system on the Solana mainnet subsequent week, permitting customers to seamlessly transfer Solana-based USDC to different blockchain networks.
Circle first launched the Cross-Chain Switch Protocol final yr however restricted the protocol to sure blockchains. The most recent improvement would see it deployed to the Solana mainnet, with an estimated arrival scheduled for March 26.
The Circle developer neighborhood’s X account disclosed the upcoming transfer in a latest submit, revealing that the protocol is already dwell on the Solana devnet forward of the approaching mainnet launch. This might enable builders on Solana to check out the system earlier than the launch on the mainnet.
Consideration builders!
Forward of subsequent week’s launch for #CCTP on @solana mainnet, we have up to date our docs for builders to construct out integrations on Solana devnet.
Keep tuned for mainnet availability on March 26!
🎯https://t.co/SCIz9NWfZJ pic.twitter.com/OQMSWCAAo3
— Circle Builders (@BuildOnCircle) March 20, 2024
Why is CCTP Necessary?
Notably, CCTP is a permissionless protocol constructed by Circle that permits community individuals to seamlessly switch USDC tokens from one blockchain to a different. The corporate developed the system to deal with the prevailing drawback with on-chain interoperability.
Considerably, blockchain interoperability stays one of many main points plaguing the trade, as community individuals on one chain have a problem shifting property or worth to a different chain with out hassles.
Builders have constructed bridges to resolve this drawback, however additionally they have inherent dangers. Along with the stress in utilizing them, through the years, a number of bridges have fallen sufferer to hacks. These embrace the Heco bridge exploit of final November and the June 2022 Horizon bridge hack.
Circle’s CCTP permits community individuals to maneuver USDC throughout networks with out the dangers or inconvenience related to these bridges. As a substitute of locking up USDC in sensible contracts like bridges do, the protocol destroys the USDC on the supply community and mints the equal on the receiving community.
By doing so, it eliminates using wrapped or unofficial variations of USDC that come from the lock-mint mechanism utilized by cross-chain bridges. The protocol first launched on Ethereum and Avalanche final April, with Circle confirming plans to increase it to different networks.
Circle Continues to Prolong Help
At present, Circle has prolonged help to the mainnet of seven blockchain networks, together with Arbitrum, Polygon PoS, Base, Noble, and Optimism. The deliberate help for Solana, which ought to deliver the variety of mainnets to eight, has sparked pleasure amongst Solana proponents.
Jeremy Allaire, co-founder and CEO of Circle, touted the approaching improvement as an upcoming “massive launch.” Recall that Circle launched USDC help on Solana in October 2020. In the meantime, the XRPL neighborhood has continued to anticipate an analogous improvement on the XRP Ledger.
