Just when you thought the crypto scene couldn’t get any more exciting, Connext is here to shake things up. With their innovative xERC20 tokens, they’re breaking down the barriers of interoperability in the DeFi world.
What is Connext?
Connext is a versatile protocol that allows developers to build secure applications (xApps) for transferring funds and data across different blockchains and rollups. It focuses on trust and security, using Ethereum Layer 1 and automated watchers to prevent fraud.
The protocol also simplifies multichain development and supports various applications like cross-chain voting and token bridging, while prioritizing security through audits.
What are xERC20 Tokens?
Connext’s xERC20 tokens are a promising innovation in the cross-chain ERC-20 token landscape. They’re designed to safely and smoothly transfer across different blockchain networks, addressing the issue of slippage that often mars such transactions. xERC20 tokens stand out for their ability to move across chains without sacrificing security. Connext has played a key role in promoting ERC-7281, also referred to as Sovereign Bridged Tokens.
This standard gives token issuers full control over their tokens when they move between different blockchains. Connext’s unique approach lets these tokens be naturally cross-chain, bypassing the liquidity problems that often come with specific bridge systems. This means that xTokens can move freely between chains, without being tied to a specific bridge system.
Additionally, xTokens can be transferred across chains with zero slippage, ensuring accurate value for each transaction. Token issuers get a lot of benefits from this system, as they can fully control and deploy their tokens, no matter which blockchain they’re on.
The tokens are also well-protected, thanks to Ethereum Layer 1 and the main bridges of each chain they interact with. Connext is always evolving, with future plans to make xTokens interchangeable with tokens minted by main bridges like rollup bridges and the Polygon PoS bridge, increasing the interoperability and usefulness of xTokens.
NEXT: The First xERC20 token
NEXT is firmly focused on decentralizing network governance, marking a significant change towards a system where crucial functions like routing, chain support, and token listing become open to all.
This change will be guided by the DAO (Decentralized Autonomous Organization), making sure that community consensus leads these important decisions. A key part of this vision is NEXT staking, which enables network users to participate in governing the network. This means that the future of the network will be more autonomous and driven by the community.
Connext will airdrop $NEXT tokens to eligible protocol users on September 5, 2023, at 13:00 UTC. Being a xERC20 token, NEXT can be claimed on four different chains – Arbitrum, Optimism, Polygon, and Gnosis. There is a total supply of 1 billion NEXT tokens that will be used for Connext DAO governance.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.