Key Takeaways

  • While Rollups and Sidechains offer high throughput and low fees, going from one scaling solution platform to another typically requires long exit durations and base layer gas consumption. Connext and Hop are two prominent solutions that enable low fee, fast transfers across various scaling solutions.
  • Both solutions rely on a network of nodes to front liquidity at the destination chain so users can perform quick cross chain swaps abstracted away from all the complexity underlying platforms.
  • While Connext is ideal for micropayments & conditional transfers like pay-as-you-go services, Hop is better suited for cross platform DeFi apps given easier native deployment in app interfaces.
  • Connext has the edge on capital efficiency and settlement duration for its routers whereas Hop is better suited for rebalancing of liquidity, use by smart contracts, and multihop transactions. Both solutions currently optimize for the short tail of assets and have low swap duration times for end users. 
  • While both approaches offer decentralized and non-custodial services, more work is needed to make both networks fully permissionless. 
  • Connext has been active in Mainnet since the

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