How work the bridge from Connext Network. Presentation article.
Introduction:
Many people who actively use crypto often face the need to transfer assets from one network to another. Sometimes this creates serious problems, since exchanges may not support the network you need, and it is impossible to make a withdrawal to it through the exchange. And if it is possible, then it can be expensive and take a lot of time for all these transfer chains.
In order to simplify cross-chain transfers and make them as fast and convenient as possible, cross-chain bridges were invented and implemented, which make this procedure as comfortable as possible.
Some of the people who are not familiar with the principles of operation of these cross-chain bridges are afraid to use them, as they fear for the safety of their funds. Let’s take a closer look at how this technology works using the example of a bridge from a Connext Network.
To begin with, let’s analyze the full cycle of a cross-chain transaction on the diagram, and then we will analyze each stage separately.
In this diagram, everything may seem confusing and incomprehensible, but let’s deal with each stage separately.
There are three phases:
1 Auction: atthis phase, user are paired with a router who will provide the exit liquidity for your transfer.
If you want to exchange for example DAI in the Optimism chain for DAI in the Arbitrum chain, the router provides DAI in the Arbitrum network in exchange for your DAI in the Optimism network.
2 Prepare: At this stage of the transaction, both sides block the funds, each in its own chain- the user in the sending chain and a router in the receiving chain.
Routers wait for the subgraph (a piece of infrastructure to easily process complex chain data) to show the user transfer before locking up liquidity on the receiving chain.
3 Fulfill: During this phase, both sides unlock the funds for a transfer.
The user provides a signature to unlock the funds on the receiving chain, and the router provides a signature to unlock the funds on the sending chain.
Once prepared, the transfer may be cancelled once it expires by either party if it is not fulfilled. Alternatively, the person who is owed funds can cancel the transfer prior to expiry rather than fulfilling. This means as soon as the transaction has been prepared, the user can cancel the transfer on the receiving chain while the router can cancel the transfer on the sending chain.
Conclusion:
I hope that with the help of this article you have become more aware of the principles of cross-chain bridges. It’s cheap, it’s fast, it’s safe! Therefore, if you need to exchange from one network to another, you can use a reliable and fast bridge from the Connext Network.