00:00Welcome back to Decentralized News. In today's video, we're looking at Hop Protocol, which is a project with a token with the ticker HOP.
00:11Currently, you can trade this token on MEXC, XT.com, Bidmite, LBANK, WHO and other exchanges.
00:22Maybe WHO, not so much. I heard they had a withdrawal pause just last week, so maybe not that one.
00:29But for the best cryptocurrency exchange reviews, go to Decentralized.News and also check out the links in the description to our Telegram and our Discord server.
00:38So HOP is actually described as a multi-chain bridge connecting Ethereum with layer 2 networks.
00:47So using HOP, users should be able to send tokens almost instantly across networks instead of having to wait multiple days.
00:58So there are two core pieces to HOP protocol's architecture.
01:04So they have a cross-network HOP bridge token that can quickly and they say economically be moved between layer 2s or claimed on a layer 1 for its underlying asset.
01:19They also have the automated market makers to swap between HOP token and its corresponding canonical token on each roll-up in order to dynamically price liquidity and incentivize the rebalancing of liquidity across the network as well.
01:41So we know that obviously with Ethereum's network, it has different scaling solutions.
01:50I've done a review on ZK roll-ups and stuff.
01:54You can also go check that out on our main site.
01:56So all of those tend to sort of, some of them have governance tokens as well.
02:03But these varied solutions also make transferring tokens from layer 1 to layer 2 slightly problematic.
02:15And with sort of what HOP is trying to do is introduce this new mechanism for transferring tokens over a shared layer 1 network in a quick fashion and without trust.
02:31So what they're trying to do is provide customers with the two-pronged token bridge for Ethereum's layer 2 network.
02:38And the solution actually aims to facilitate the rapid movement of a token between a layer 2 and a scaling solutions governance token.
02:50So HOP protocol itself aims to construct a unique community-orientated decentralized autonomous organization or DAO, which seeks to also enhance the layer 2 scalability.
03:03So as far as how they describe how the actual protocol works, they say it effectively leverages bonders who, by providing liquidity, they tend to earn a fee.
03:17So technically, a user will send any amount of token to, say, bonders on the source chain, which is where the asset is being sent from, of course.
03:30But after that process, the bonder will send the asset to the user's counterpart on the destination chain.
03:39So HOP protocol itself plays a significant part in the transaction by actually ensuring that the bonders have sent the tokens and no user will be happy if they send their token to bonders, but they cannot actually reach the blockchain or the destination blockchain.
03:59So furthermore, the actual system itself then employs this, like a particular type of token called H-tokens.
04:07And these tokens then act as a unique technique to ensure that all transactions are actually accurately recorded.
04:16So H-tokens can also traverse several chains using Ethereum to layer 2 protocols and also vice versa.
04:25So it's important to actually highlight that moving tokens from one location to another can actually take a lot longer than expected, which might be inconvenient for some users.
04:36Therefore, if you think about bonders, they actually will need to provide liquidity up front to customers so that they can simultaneously have their tokens as they wait for the network to also complete the transfer of the H-tokens.
04:51So you can also think of H-tokens as a shadow token that follows the actual genuine token.
04:58So there are some unique sort of protocol features as well.
05:02They provide a scalable roll-up to roll-up general token bridge, which works through automated market makers to swap each bridge token.
05:12And it's a corresponding canonical token among each roll-up to have dynamically priced liquidity and also incentivize rebalancing of liquidity across the actual entire network.
05:29And they also employ the same level of protection as on an underlying roll-up, meaning users can never actually lose their asset or have their assets stolen.
05:40But it's essential, obviously, for you to actually remember that the worst case situation is that bonders do go offline.
05:47But even so, you know, users will only experience a delay equivalent to the roll-ups or exit time.
05:54So HOP has actually a two-pronged strategy to generate cross-network tokens.
05:59And by utilizing these AMMs, it can also conduct transactions very fast and efficiently.
06:05And connectivity is something that sees, you know, they look at it like it's on the horizon.
06:12And since it supports this range of destination chains and consequently providing excellent connectivity as well, though it's restricted to Ethereum's mainnet and these layer twos.
06:25But in terms of tastefulness or statefulness, you know, HOP actually has some limitations in its capacity to transfer specific assets.
06:33And it actually now only supports five different types of assets as well.
06:37So, yeah, let me know what you guys think about the HOP protocol, HOP token.
06:43And, you know, if this is something that you think is a good hold, it's the blockchain governance token for the HOP protocol.
06:52It gives users the power to vote according to each token that they own.
06:57And they may use these votes to weigh in on ideas like which tokens can be traded, the addition of layer twos and the administration of the treasury money as well.
07:08Currently, at the time of shooting this video, trading at just about 10 cents is a HOP protocol.
07:14Like I said, they are available for trading on these different exchanges, MEXC, XT, BitMart, LBank, who go to Decentralized.News to check out all of the best cryptocurrency exchange reviews, DeFi platform reviews, and also NFT marketplaces.
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