What Is Hop Protocol?
Hop Protocol is a unique blend of algorithms and tools designed to facilitate the transfer of tokens across rollups. It allows users to quickly transfer assets between blockchain layers and sidechains, thus simplifying cross-chain interactions.
Background
Chris Whinfrey, Miguel Mota, and Shane Fontaine founded Hop Protocol in 2021.
How It Works
Hop Protocol’s primary utility lies in its multi-network bridging facility, the Hop Protocol Bridge, which enables swift and cost-effective movement of crypto assets between the Ethereum mainnet, sidechains, and Layer 2 networks. Unique smart contract tokens called Hop Bridge Tokens (tokens) are central to this process. They represent the assets locked on supported chains and are issued at a 1:1 ratio with the locked asset, facilitating the transfer and redemption of assets across chains.
The transfer of hTokens triggers a burning and minting function, which burns the hTokens on the source network and mints an equivalent number on the destination chain. This process is faster than standard bridging functions used on other platforms. The HOP token is an exception to this mechanism; the Hop Dao can designate hHOP as the canonical HOP token, eliminating the need for an Automated Market Maker (AMM) for final swaps at the destination chain and saving users’ fees.
Key Takeaways
- Hop Protocol is a toolset designed to simplify the transfer of tokens across different blockchain layers and sidechains.
- The protocol was founded by Chris Whinfrey, Miguel Mota, and Shane Fontaine in 2021.
- The Hop Protocol Bridge, a multi-network bridging facility, enables swift and cost-effective movement of crypto assets between the Ethereum mainnet, sidechains, and Layer 2 networks.
- Hop Bridge Tokens (tokens) represent the actual assets locked on supported chains and facilitate the transfer and redemption of assets across chains.
- The transfer process of tokens involves a burning and minting function, which is faster than standard bridging functions used on other platforms.
