What’s the story behind Connext, valued at 250 million USD with over 20 million USD in cumulative funding?

Recently, the cross-chain infrastructure Connext announced the completion of a $7.5 million financing round with a valuation of $250 million. Investors include well-known venture capital firms such as Polychain Capital, Polygon Ventures, Coinbase Ventures, and 1kx. Chain Catcher author Grapefruit analyzed the project from the perspectives of underlying architecture, security, and ecosystem development. The project plans to launch a token later this year.

Connext underlying architecture: modular design. Connext is a cross-chain infrastructure that can be used not only to develop cross-chain bridges, but also to build cross-chain DEX, cross-chain lending, cross-chain NFT, and any other cross-chain DApps. The so-called modular design means that Connext divides the main processes or functions involved in cross-chain into different components and develops corresponding APIs or SDKs. These components can be combined in various ways to achieve specific goals, and developers can integrate them according to their needs.

How does Connext ensure security? In Connext, asset cross-chain and information transmission are separated. Its asset cross-chain is called the “Liquidity layer”, which is essentially a state channel cross-chain. Each node establishes a payment channel with other nodes to transfer native assets through the channel. There are mainly two modules in Connext information transmission, one is the Optimistic Layer, and the other is the AMB layer. The former is mainly responsible for normal message cross-chain transmission, while the latter integrates official cross-chain bridge data from various blockchain networks, supports cross-chain sending and receiving of tokens, and is responsible for regularly submitting official cross-chain bridge data in batches to the mainnet for the final security guarantee.

However, Connext officials also stated that this design is only temporary and will soon be fully upgraded to the Optimistic Bridge. Connext completed the Amarok upgrade in February this year, allowing developers to deploy cross-chain applications. Now, multiple applications have integrated Connext to achieve cross-chain layout, such as the decentralized trading platform DODO, the Web3 flow payment platform Superfluid, and the cross-chain aggregator Lifi.

Reference: https://www.chaincatcher.com/article/2095291

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