India freezes digital assets WazirX, linked with Binance The developers of Shiba Inu have announced a new mobile game Binance received a subpoena over Elon Musk's refusal to buy Twitter The New York authorities fined the crypto platform Robinhood for $30 million North Korean hackers forge CVs to join U.S. crypto companies A new unknown investor bought bitcoins for $3 billion Binance employee claims loss of 90% of customers and billion dollars in revenue MetaMask users face a phishing attack Unknown hacked almost 8 thousands crypto wallets on Solana

What is Connext?

What is Connext?

Connext Network DeFi is an ambitious crypto-project that combines blockchains and creates inter-network liquidity to enable fast and network-independent transactions. Currently, the project is about to launch an Amarok update and is getting ready to issue its own NEXT token.

Full name of the company: Connext Network

Foundation date: 2017

Total value: $1.2 billion

Founder: Arjun Bhuptani


Company products

Connext Network DeFi is a crypto project aimed at creating inter-network liquidity, ensuring the fastest possible, non-storage-related swaps between EVM compatible blockchains and Ethereum L2 systems.

Since Ethereum is slowly changing into a multi-chain network with the constant introduction of EVM-compatible chains and L2 networks, the issue of liquidity fragmentation in the ecosystem arises. Connext provides the solution since it connects the discrete liquidity pools of each blockchain and turns them into a common global network without the need to implement new security and user trust criteria.

Connext Network DeFi offers users the following features:

  • creating bridges for transactions and exchanges between blockchains;
  • using Interchain DeFi protocols;
  • development and use of blockchain-independent NFTs.

The team wants the future development of its crypto project to be such that users don't have to worry about which network they are on, and developers can create new products using the resources of various blockchains.

We can consider the Connext platform as a set of liquidity pools in different blockchains. Users can exchange between the pools, while using the routers that form the network basis, it is possible to provide liquidity for user swaps and make a profit from commissions.

Developers collaborating with Connext are invited to use the provided liquidity to create a new class of DeFi applications that won't depend on the network but will be hosted on the platform itself. In addition, they will be able to provide uninterrupted cross-chain functionality in any dApp with the following features:

  • fast implementation of entry and exit between Ethereum and L2;
  • direct L2-L2 (layer 2 networks) exchange with no involvement of Ethereum blockchain;
  • arbitration between DeFi-applications in different networks;
  • creation of the DEX cross-chain aggregator (decentralized exchange);
  • getting general access to cross-chain smart contracts.

Connext Network DeFi developers market their project as one with such benefits as modular interoperability, i.e., using the released Amarok update, the concept of an interchain protocol stack with NXTP as a liquidity layer is implemented. It features mobility, namely, interacting with the Nomad protocol makes it possible to detect fraud in order to improve transaction security. Connext is independent because there is no need for an external proof mechanism, as the router transfers capital to the target blockchain and then waits for the data from the source blockchain to be transferred to the destination by engaging the messaging layer. Furthermore, there is transaction completeness, which is ensured by achieving OTC Tendermint consensus between routers.

Connext Bridge is a cross-chain bridge on the Connext platform that connects blockchains and makes it possible to connect wallets and conduct exchanges between different blockchain networks, including Ethereum, Avalanche, Solana, Binance Smart Chain, and others. It represents the main interface of the bridge, which is used in the Connext project.

Using Connext Bridge, users have access to the NXTP transmission protocol with no user asset storage so that they can quickly and cheaply switch between supported networks and L2 layers.

The scheme of the Connext cross-chain bridge operation is as follows: user 1 sends target asset X in the amount of 100 units to user 2; the router (aka liquidity provider) sends the equivalent of asset X in the form of asset Y to user 1; user 1 can unblock the conditional transfer to receive asset Y, and user 2 also gets access to the asset X sent to him.

NEXT is a native token of the Connext network based on the ERC-20 standard. It manages and effectively applies the network and the entire ecosystem. The key mission of the token is to provide operational equity to routers after the Amarok update takes effect.

Connext network nodes bid NEXT to participate in the project's development, after which they receive a proportional share of the work in it. The token keeps the network running by ensuring that all routers adhere to a set of rules for fair transaction order. If one of the nodes violates the current aspects, its NEXT fraction is cut down.

It is also supposed to use coins to manage the Connext ecosystem through a decentralized autonomous organization (DAO). Such an approach to community development allows for the efficient long-term allocation of resources among the leading participants, who improve the ecosystem and drive it forward.

A total of 1 billion tokens are planned to be issued.


History

2017 – launching the Connext project by a team of developers led by Arjun Bhuptani. Researching the L2 blockchain (networks that build on top of the L1 core layer) to improve the Ethereum user experience. Attracting the first $1 million investment package.

2018 – creating the first L2 on Ethereum with the support of a Spankchain partner and receiving a grant from the Ethereum Foundation.

2019 – receiving funding from ConsenSys Ventures in the amount of $500,000.

2020 – the team took part in the Reddit scalability contest and created a demo for full token movement across Polygon, Arbitrum, xDai, and Skale test networks.

Improvement of Connext's own decentralized network concept reaching a goal of 20 million weekly volume. The launch of redditNXTP, a universal blockchain communication protocol that is quickly implemented in applications and helps to extend various chains.

2021 – conduction of a round of financing initiated by the venture capital company Polychain Capital. The Connext project received a $2.2 million investment from Huobi Capital and 1kx. These funds were used to build the network's primary liquidity pool and recruit new employees to the team.

Raising another $12 million from a group of 82 investors in order to expand the development team and grow the ecosystem by scaling the network and implementing a grant program.

The number of Connext project users was more than 40 thousand people, and the volume of conducted transactions reached 40 million dollars.

2022 – in April, Connext introduced its own NEXT token of the ERC-20 standard to ensure efficient use of the network and its full decentralization.

Subscribe to our Telegram channel for the most relevant, interesting, and informative news from the crypto industry.

0
Is there an error in the article?
To report