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Jan 15, 2024
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At Orderly, We Believe In Chain Abstraction
by Orderly Network
orderly-believes-in-chain-abstraction

We’re big believers in “chain abstraction,” which is abstracting away the complexities of cross-chain trading — without using cross-chain bridges.

Bridging is dangerous. The Orbiter bridge was just hacked for over $80 million in the very first week of 2024.

Last year alone there were over 160 major hacks in crypto totalling over $1.7B.

hack-stats-in-crypto-2023

Orderly takes security extremely seriously. We recently partnered with Zellic Security — a security research firm with deep expertise in blockchain security, to put our ̶m̶o̶n̶e̶y̶ crypto where our mouth is.

In addition to partnering with security firms and regular audits, we make sure any integrations we have are with the most secure providers possible. Our cross-chain messaging is powered by Layer Zero Labs, an industry-leading protocol in facilitating cross-chain communications… with a potential massive airdrop on the way.

Which brings us to how Orderly avoids wrapped assets and traditional bridges. It’s Circle’s Cross-Chain Transfer Protocol (CCTP).

Cross-Chain Transfer Protocol (CCTP) is a permissionless on-chain utility that facilitates USDC transfers securely between blockchains via native burning and minting. CCTP technology effectively teleports USDC across chains. You no longer have wrapped assets and unofficial bridged assets. It largely removes smart contract risk and prevents large-scale bridge hacks.

Let’s dive into the tech magic behind USDC teleporting across blockchains.

The Initiation: First up, you use a DApp to shift USDC from one blockchain to another. You point to where it needs to go, and the DApp burns the specified USDC on your current blockchain. This isn’t just a transfer; it’s a calculated disappearance act.

Circle’s Verification: Next, Circle steps in. They observe this burn event, verify it, and issue an official attestation. Think of it as a high-tech, blockchain-certified seal of approval, signaling all’s clear for the next phase.

The Minting Phase: Armed with Circle’s attestation, the app triggers the minting process on your chosen destination chain. The exact amount of USDC you burned is now recreated — minted fresh and sent straight to the designated wallet. It’s precision, it’s efficiency, it’s blockchain at its best.

the-minting-phase

Hence, the term used is “teleporting” instead of “bridging”. Users never need to switch wallets or even think about which chain they’re holding USDC on. The bridge is abstracted.

Stay safe, and make sure you trade on an Orderly Powered DEX.

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