We recently integrated Chainlink Cross-Chain Interoperability Protocol into the Nexera Bridge (Nexera Interoperability Protocol) and SDK, adding CCIP as a core messaging provider. This update leverages CCIP’s level-5 security and robust support for major blockchains, enhancing the security and efficiency of cross-chain transactions.
As the tokenization of real-world and digital assets accelerates, secure and accessible infrastructure becomes vital. In this article, we’ll dive into how this integration simplifies bridging ERC-20 and ERC-721 tokens and enables developers to create seamless cross-chain applications.
Understanding Cross-Chain Bridging
The concept of bridging between blockchain networks refers to enabling interoperability between different networks. This means being able to transfer assets, messages or data between networks, regardless of the differences in protocols and standards.
The most popular use case for blockchain bridging is transferring assets like ERC-20 or ERC-721 tokens from one network to another to be used on the other. An example is bridging $NXRA from the Ethereum network to the Avalanche network to stake on Fundrs.
Additionally, bridging can also transmit arbitrary data and messages between two networks. This could be data, metadata, or instructions to execute actions when the message is received on the other network.
The Nexera Bridge, or more appropriately, Nexera Interoperability Protocol (NIP), is not just one protocol but a suite of protocols and smart contracts that allow users to bridge and claim ERC-20 or ERC-721 tokens (more standards will be supported). It aggregates several messaging providers that can be selected to bridge specific kinds of tokens or messages depending on the use case or need.
The NIP is comprised of the following components:
- Application — The application is the front-end interface that users interact with to bridge their ERC-20 or ERC-721 tokens
- Router Smart Contracts — These are smart contracts that manage the locking and minting or burning of ERC-20 or ERC-721 tokens on the source and destination networks
- Teleport Protocol — The protocol that interfaces between the application and the messaging providers and processes the messages to be sent and received
- Messaging Providers — These protocols transmit messages, arbitrary data, and metadata between networks. They work with off-chain validators that verify the messages being sent, ensuring accuracy and security. For NIP, one of the core messaging providers is Chainlink CCIP.
Furthermore, the NIP SDK, with which the Bridge is built, is accessible to builders and can be used to create multi-chain and omni-chain applications.
A simple way to understand how it works is to compare it to sending a package to another person. The sender transacts with a delivery company to manage the shipment and delivery of your package to the receiver.
In this analogy, the package is the message or data, the sender and receiver are users, the delivery company’s drop-off offices are the Router Smart Contracts, and the sorting centers are the Teleport Protocol. The road network and routes are the Messaging Providers.
The sender (user) drops off the package with the delivery company’s drop-off office (Router Smart Contracts). The package then gets sent to the sorting center (Teleport), which manages how the shipment is made and what route it should take. The road infrastructure (messaging provider) includes toll booths, stop lights and cameras, which observe and validate the movement of the delivery truck between destinations. On the other end, the destination sorting center takes in the package (Teleport), which sends it over to the drop-office office (Router Smart Contracts) and then finally to the receiver (user).
NIP has two Router Smart Contracts, ERC-20 and ERC-721. The application manages which router to use depending on the type of token being bridged. The routers lock or burn the token being bridged on the source network. Depending on the use case, additional types of routers can also be added. Once the protocol is open-sourced, developers can also request to add their custom routers.
The application then interacts with the Teleport Protocol, which communicates with the specified messaging providers to coordinate the sending and receiving messages on both source and destination networks. With the recent integration of Chainlink CCIP, we have made it the default messaging provider for bridging ERC-20 and ERC-721 tokens.
On the destination network, the Teleport Protocol receives the message and interacts with the routers, unlocking or minting the token on the destination network. The application then transfers the token to the receiver’s wallet.
Chainlink CCIP In Detail
This is the latest integration we’ve had with Chainlink since we started working together in 2020. Chainlink has been developing CCIP since 2023, and its general availability this year is timely as tokenization on blockchain has become more relevant. The need for robust infrastructure has never been more apparent.
Selecting CCIP as the default messaging provider for the NIP allows us to leverage the protocol’s level-5 security to ensure that messages, assets, arbitrary data, and metadata being transmitted are validated accurately and securely.
CCIP has several layers of validators, including two Decentralized Oracle Networks (DONs) — Committing and Executing DONs — and an independent Risk Management Network. On a high level, the Committing DON and Risk Management Network agree before the Executing DON can validate the message being transmitted before receiving it on the destination network.
The Committing DON is the first level of security. It commits to CCIP messages from the source network and creates a Merkle tree of the messages. The Merkle root is then published on the destination network. The Risk Management Network independently performs the same tasks, including creating a Merkle tree. If the two Merkle roots match, the Risk Management Network blesses the on-chain root.
This dual Merkle root validation ensures the transmitted messages are accurately and securely verified before execution. Additionally, the Risk Management Network can set additional conditions for what it considers to be a risk, adding the capability to trigger an emergency stop if it detects suspicious activity, set rate limits on the number of tokens to be transferred, or set a timelock for a quorum of CCIP node operators to veto or explicitly approve upgrades before deployment.
Once the Risk Management Network blesses the Merkle root, the Executing DON then transmits the messages to the destination network for execution, along with the Merkle proof of the blessed Merkle root. CCIP verifies these proofs against the blessed Merkle root, and if successful, the messages are executed on the destination network.
Integrating CCIP is a major upgrade for the NIP. It allows our solutions to take advantage of their protocol cross-chain implementations while empowering Nexera ecosystem developers to leverage Chainlink’s security benefits. You can read more about Chainlink CCIP on their website.
Architecture Upgrades
The integration of CCIP has been made possible following a massive architectural update made on the NIP, bringing it to version 2.0. On a high level, the protocol now acts as an aggregator of messaging providers. Messaging providers are protocols that transmit messages, arbitrary data, and metadata between networks. Each messaging provider has its means of validation, such as off-chain validators, that verify the messages being sent, ensuring accuracy and security.
This required changes to the Teleport Protocol and Router Smart Contracts, which can now recognize new providers, with Chainlink CCIP being integrated as the core messaging provider. This also means developers can select CCIP as a messaging provider through the NIP SDK or add their own. As before, developers can send arbitrary messages, token transfers, or programmable token transfers across networks and specify which messaging provider they use for their needs.
This architectural update paves the way for the support of additional providers in the future, such as Circle’s Cross-Chain Transfer Protocol (CCTP), which allows users to bridge USDC natively across networks via a burn-and-mint mechanism without having to deal with unofficial wrapped versions.
Moreover, this update further promotes the composability of the NIP, as each component can be updated independently, including updates to messaging providers, allowing for faster development and auditing cycles. Adding support for more networks is also more straightforward,
This major upgrade for Nexera Interoperability Protocol brings us closer to creating a unified, multichain and omnichain tokenization infrastructure. Interoperability and security are crucial for a robust tokenization ecosystem, and we are thrilled to collaborate closely with the Chainlink team to realize this vision.
What’s Next
We have already communicated that Omniscia has fully audited the NIP and completed the upgrade, which integrates Chainlink CCIP as a core messaging provider.
With the upgraded architecture, we are also beginning to work on additional messaging providers, such as Circle CCTP, which will make it easier to bridge native USDC across our supported networks.
We are also working on the updated documentation for the NIP, which will provide a more comprehensive overview, including integrations and use case examples.
We are thrilled to achieve this significant milestone for the Nexera Interoperability Protocol. Integrating Chainlink’s CCIP enhances the security and reliability of token bridging, providing users and developers with more flexibility and options.
This major upgrade paves the way for future developments across the Nexera infrastructure and technology stack, and we’re excited to share more advancements soon.
About Nexera
Nexera is empowering the future of finance with cutting-edge open-source innovation. Nexera infrastructure seamlessly incorporates blockchain technology, facilitating on-chain and off-chain operations for simplified digital, financial, and real-world asset management.
Nexera Foundation is focused on nurturing the broader ecosystem and DAO and enhancing the utility of the $NXRA token. It is committed to promoting community growth and driving innovation in the digital asset space, including the growth and development of current and future key ecosystem partners.
Learn more about Nexera by following them on X, joining the Telegram Community, or visiting their website.
