Connext №3. Routers. [ENG Version]

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In the previous lesson, we figured out what bridges in general are and how they work. This is basically enough to understand the Connext Bridge structure.

But our friend Connext Bridge has such an important element as routers, which other cross-chain bridges do not have.

So we absolutely must understand who these routers are and how they work.

Routers - it's what Connext calls their liquidity providers. Routers provide their funds to transfer from one blockchain to another.

In return, they receive a commission of 0.05% of the entire transaction amount. But this percentage is not constant and will dynamically change in the future depending on the current number of users.

1. Auction. The first stage is the selection of the router. In this stage, we, the users, are allocated a liquidity provider that will take our funds from the network we are sending and send them to the network we want.
2. Preparation. The second stage is blocking. This is where most of the interaction between the user and the router takes place. Both the user and the router block their funds - the user on the sending network, the router on the receiving network.
   The router then waits for a response from the subgraph (part of the infrastructure) that the user's transmission is complete, after which it blocks the liquidity in the receiving network.
3. Fulfillment. The third stage is receipt of funds. In the final step, both sides of the interaction unlock the funds for the transfer. The user provides a signature that is used to unlock his funds in the receiving network, and the router uses the same signature to unlock the funds in the sending network.

The security of all this wonderful dance between user and router is provided by the unique NXTP protocol.

NXTP is a simple protocol for completely non-castodial inter-network transmissions and contract interactions.

• NXTP does not store databases outside the chain, with third parties. All data is stored only on the blockchain;
• Users still sign transactions on the chain they receive, but the movement of funds is much simpler and uses transferFrom instead of the usual approve;
• Funds are stored in one contract of each chain, making it easier to track funds and create explorers;
• By default, NXTP treats RPC chains as trustworthy, using subgraphs to read data and send it;
• Being primarily a contract-oriented system, NXTP opens the door for developers to create interactions between contracts in various chains and rollups.

That is, all the information needed for both user and router is stored on chain, which solves accounting and routing problems.

It would seem that everything sounds as simple as possible, and anyone can become a router. But, unfortunately, this is not the case, and here's why:

• Required funds: 100k-500k supported Connext assets;
• Technical skills: High level;
• Time: It takes a lot of time;
• Risks: ranging from medium to high.

If you don't fit at least one criterion, it's better to think it over again. But if you have a lot of knowledge and experience in IT and cryptography, and you have the necessary funds and free time, you should take a look at THIS checklist.

That's it, I think we're done with the theory, we can move on to practice, namely the use of Connext Bridge. But that will be in the next part, so:

To be continued...

Prepared by blinkfeed#8312