We have already reviewed Connext several times, so to understand what is happening, I recommend you to read previous articles.
Now I would like to do a SWOT analysis.
SWOT
Strengths (strengths)
Simplicity. Connext is very easy to use and does not require deep knowledge of the crypto ecosystems. It is enough to understand what you want — for example, transfer tokens from one network to another. This requires the main tokens of these networks to pay for gas and the ability to change networks. That’s all.
Design. Compared to many competitors, the design looks more pleasant and understandable. There is no excess of unnecessary information, but at the same time there is a description of the ongoing processes so that the user is less confused.
Experienced team. Mentions of Connext can be found on the CEO Medium back in 2018. This means that it has already stood the test of time and the people behind the project have a lot of experience in both Web 3, and Connext development in particular. It looks like they are not and are going to drop it soon. New features, improvements and partnerships are constantly being announced.
Rich set of networks. In the Comparison with Axelar Network, I covered it better with actual numbers
Weaknesses (weaknesses)
Liquidity. Right now, due to the lack of liquidity, it is difficult to work with even slightly unique pairs. However, it is important to say that TVL is constantly increasing and as the project grows, this problem gradually disappears.
Opportunities (opportunities)
Partnerships. There are already many networks on the market that require a solution to the problem of blockchain interaction. For starters, it can be a simple exchange of tokens from one ecosystem to another.
Growth of the cryptosphere. More capitalization -> higher income of network components -> more solid investments and bounty -> better product. You can think of many such chains, but the essence is clear anyway.
Threats
Ethereum. Yes, don’t be surprised by this point. Ethereum can theoretically become so advanced that it can cover most of the problems that Layer 1 and Layer 2 blockchains are trying to solve. This will simply result in them not being as necessary and chances are blockchain interoperability will be important on a much smaller scale. But we should not forget that Ethereum is very bulky, which does not allow it to develop as quickly as we would like it to be. NEAR, for example, has sharding for a long time, when Ethereum is still in the process of development.
Regulators. Don’t get me wrong, regulation in itself is only a positive thing. I will combine here all the potential threats from governments. This may include control over the ecosystem and the individuals in it, restrictions, attempts to regulate too much, blocking, etc. This point applies more to the entire cryptocurrency ecosystem, and not specifically to Connext.
Competition. Since Connext is trying to solve an important problem, it is not alone and its competitors are very serious, many of which already have a working product in the mainnet and the same number are planning to release soon. This can be seen as an “engine of progress”, but the fact remains that it is almost always difficult to compete.
Activities
Right now there is an opportunity to donate to them through Gitcoin. Theoretically, there is a possibility that something will be given for this. There is not much time left, so if you want to participate, then hurry up.
In addition, they participate in the event from Arbitrum. This week you need to make at least 1 exchange through Connext and receive NFT at the end of the week. Absolutely every crypto channel has already written about Arbitrum, so I don’t want to repeat.
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