Connext (NEXT): The Solution to Building Crosschain Web3 Apps

Ethereum and other blockchains must utilize rollups, sidechains and other strategies to move large amounts of data between different chains. While this is effective on a technical level, the downside is a fractured experience for users. Now, however, a protocol known as Connext is gaining popularity for its development support of cross-chain apps. This protocol has the ability to dramatically improve the development of more usable, practical applications that yield a better user experience. Read on to learn how Connext works, and whether its NEXT tokens are a good investment for your portfolio.

Key Takeaways:

• Connext is a modular blockchain protocol that supports the development of xApps, also known as cross-chain apps. These applications enable fast, simultaneous interaction between several domains.
• Connext held its official NEXT airdrop on Sep 5, 2023.
• Looking to trade Connext tokens? Bybit now offers the NEXT/USDT Spot trading pair. To celebrate this listing, Bybit is also holding an event where users can share a 60,000 USDT prize pool.

What Is Connext?

Connext is a modular blockchain protocol that supports the development of xApps. These applications enable fast, simultaneous interaction between several domains.

Connext’s interoperability protocol lets developers quickly and easily build applications that support a better user experience. The protocol enables data to flow between different chains without delay and without the need for rollups, sidechains or other scaling methods. Connext utilizes the principles of modularity, security and simplicity. Cross-chain applications, which are known as xApps (pronounced “Zapps”), support DAO voting, DEX liquidity, vault strategy management, lending functions, NFT bridging, data storage and more.

History of Connext

Connext Labs developed the Connext protocol, which was founded in June 2017. Its headquarters are located in San Francisco, California, and its founders are Arjun Bhuptani, Rahul Sethuram and Layne Haber. 

To date, Connext Labs has completed seven funding rounds that have yielded $23.2 million. The most recent one concluded on Jun 14, 2023. The funds will be used to establish the Connext Foundation, which will oversee the issuance of development grants and funding to Connext-built initiatives. Major investors in Connext include #Hashed, Coinbase Ventures and several dozen others. 

In August 2023, Connext announced that it would finally be launching and airdropping its native token, NEXT, to early users on Sep 5, 2023, after a one-year wait. Prior to the airdrop on Sep 5, 2023, Connext had supported more than 1.2 million cross-chain transactions valued at more than $1.6 billion.

What Does Connext Aim to Achieve?

The team at Connext Labs set out to improve upon the development and user experiences offered via Ethereum and other blockchains. Specifically, after the team identified the slow speed of app development and the fragmented user experiences that these blockchains supported, they developed the Connext Network specifically to improve in these areas. The project enables fast and easy development of xApps, which support a better user experience for cross-chain transactions. By doing so, Connext is building a web3 that’s more functional for today’s users.

How Does Connext Work?

Connext is designed with a specialized architecture, an easy-to-use interface and a slew of excellent features. These combine to enhance security and improve app development and interoperability across the developers’ selected chains.

Architecture

Connext has a hub-and-spoke architecture that offers Ethereum’s security while also utilizing canonical messaging bridges. This architecture provides developers with superior trust guarantees, regardless of which chains they choose to build on. 

The protocol also uses smart contacts and off-chain agents that include routers, sequencers and relayers. Automated off-chain actors known as Watchers monitor the Connext Network for fraud. This minimizes the possibility and extent of malicious activities that could have an impact on transactions. For simplicity, Connext also utilizes established contracts and architecture on other blockchains throughout a transaction’s lifecycle.

Transaction Lifecycle

Connext’s interoperability protocol has both fast and slow paths. Cross messages can take the fast path if the transaction bridges tokens or unauthenticated call data, and if liquidity for the message’s destination domain is available. Otherwise, messages take the slow path. 

The transaction begins when a user initiates a transaction. After smart contracts dispatch a transaction’s details, the router prepares and posts the transaction object to the sequencer. Then, the sequencer submits bids to the chain so transactions can be completed.

Features of Connext

Connext is a robust network with numerous advanced features that combine to elevate app development and user experience. At the same time, these features support the network’s growth and continued evolution. 

Crosschain Liquidity

Developers can take advantage of next-generation DeFi protocols for enhancing liquidity provision in their apps. These protocols support yield aggregation, lending, borrowing and swapping digital assets across multiple chains.

Crosschain NFTs

Crosschain-native NFTs move between chains based on the user’s needs. This feature also supports fractional NFTs and allows for access to token-gated communities. The NFTs can be used as collateral on new domains as well.

Crosschain Governance

Soon, Connext will offer cross-chain interoperability for governance, allowing xApps projects to reap the benefits of community governance while still supporting transactions between different chains. 

xERC20

Application developers can take full advantage of Connext’s cross-chain interoperability with their own cross-chain tokens. These xERC20 tokens can be securely transferred across different chains without concern about slippage, and will be fully controlled by the token issuer. They’re secured via both the canonical bridges of the chains being used and by Ethereum.

Chain Abstraction

Connext’s Chain Abstraction allows a seamless user experience across different chains. Users don’t need to switch to another chain to use a developer’s app, and the user doesn’t need to leave the app’s interface. In addition, crosschain abstraction lets users interact with the app using any token.

Routers

Routers serve the important purpose of providing liquidity to specific chains. They work by simulating transactions on destination. Routers then create the related bid and submit the new bid to a sequencer. Once the sequencer receives a batch of bids, it submits winning bids to the relayer to finalize a transaction.

Connext Airdrop

Connext partnered with Tokensoft to launch its Sep 5, 2023 airdrop. Early users of the Connext protocol were set to receive NEXT tokens, the protocol’s native token. Eligible users could claim their NEXT tokens to Gnosis Chain, Polygon, Optimism or Arbitrum. According to CEO Bhuptani, approximately 57,000 unique wallets registered for the claim.

However, it was later revealed that the much-anticipated airdrop was the victim of a Sybil attack. A wallet created four hours before the airdrop was able to intercept 253 claims to itself. The attack rendered the claiming portal unresponsive. 

After claiming 274,956 NEXT tokens from the compromised wallets (which were unrelated to Connext), the wallet in question then converted the tokens into USDT and ETH and immediately took a profit of $40,000. 

Connext quickly took to Twitter to confirm the Sybil attack and to reassure the community that the protocol had not been compromised. The network also shared that the tokens (which were claimed and sold) only accounted for 0.26% of the airdropped tokens, and gave prompt updates on their investigation. 

Subsequently, the claiming portal was once again made available and by Sep 7, 2023 at 12AM UTC, over 20,000 users had claimed 28,884,594 NEXT tokens across four different chains without any other issues.

Connext Road Map

Seven funding rounds have been completed thus far, generating more than $23 million for the Connext project. Recent updates have focused on enhancing the network’s architecture and strengthening the community. In addition, Connext sponsored five hackathons in 2022. Looking forward, Connext will use NEXT token staking for chain support, routing and other activities.

NEXT Tokenomics

Source: Connext

NEXT is the native token of Connext. There’s a total supply of one billion NEXT tokens, distributed according to the following allocation: 

• Early Backers: 22.43%
• Ecosystem and Strategic Backers: 11.24%
• Early Team and Advisors: 11.61%
• Proxima Labs: 3.78%
• Community: 50.94%

NEXT Price Prediction

As of Sep 8, 2023, the NEXT token price is $0.068831, down more than 20% over the last 24 hours. Current market cap is $7.3 million. The all-time low price of $0.01360325 occurred on Sep 5, 2023, with the current price 405.25% above it. The all-time high price of $0.449694, which is 84.72% higher than the current price, occurred early on the same day.

Reputable sources have made various price predictions for the NEXT token. According to CoinArbitrageBot, NEXT tokens may gradually increase in overall value with the potential to hit $0.13 by the end of 2023, $0.27 in 2024, $0.48 in 2025 and $0.41 in 2027.

Where to Buy NEXT

Looking to trade NEXT tokens? Bybit now offers the NEXT/USDT Spot trading pair. You can get started with Spot trading in just a few steps with an established Bybit account. If you don’t yet have a Bybit account, you’ll first need to click on Sign Up on the homepage. You may also follow our detailed sign-up guide if you require any assistance on registration. 

After you follow the sign-up steps, you’ll be ready to fund your wallet and navigate to the NEXT/USDT Spot trading page to begin.

To celebrate this listing, Bybit is holding an exclusive event in which users can deposit NEXT tokens to earn from a total 60,000 USDT prize pool!

First, those who are new to Bybit can share a 50,000 USDT prize pool. Simply complete the following steps from now through Sep 20, 2023, 11:59PM UTC to receive 40 USDT:

1. Sign up on Bybit and complete Identity Verification.
2. Accumulate a deposit volume of at least 100 USDT worth of NEXT, or deposit 100 USDT and buy NEXT via your first trade.

Please note that only the first 1,250 new users to complete the above steps will receive the rewards.

Secondly, users who’ve already had an existing account with Bybit before Sep 5, 2023, 1PM UTC can share a 10,000 USDT prize pool instead. Simply be one of the first 500 users to complete either one of the following steps to earn 20 USDT:

1. Accumulate a deposit volume of at least 100 USDT worth of NEXT, or
2. Deposit 100 USDT and buy NEXT with your Bybit account.

Is NEXT a Good Investment?

Connext has been growing in popularity and relevance in recent years, offering benefits to app developers and users. It strives to enhance web3 with utilities across a range of industries. This network is well-designed, and may continue to evolve going forward, based on the financial support it’s received from its many established investors. With this in mind, Connext’s adoption may become more widespread.

Although its official airdrop was marred by a Sybil attack, the Connext team worked closely with Tokensoft to investigate and solve the issue. Within a day, the claiming portal was back online and users were able to claim their airdrop seamlessly. Prompt updates on the team’s social pages offered the community reassurance that the protocol hadn’t been compromised. 

Due to the incredible volatility of the crypto market and the rapid changes in blockchain tech evolution, it’s not possible to accurately predict the future value of a cryptocurrency. While there are indications that NEXT may be a lucrative investment, always carefully conduct independent and thorough research before investing your funds. As a general rule of thumb for all types of investments, invest no more than you can afford to lose.

Closing Thoughts

Connext is designed to take the web3 space to a higher level as it enables fast, simplified app development. More specifically, it enhances cross-chain utility for both developers and users. Consider learning more about this exciting project today as either an investor, or as a potential developer or user.

#Bybit #TheCryptoArk