Wanchain (WAN) is a blockchain platform that allows for the decentralized transfer of value between different blockchain networks. With Wanchain, transactions in digital assets like Bitcoin or Ethereum can be conducted across different chains. This interoperability aims to expand the use cases for digital assets and blockchain technology.
Overview of Wanchain
Wanchain was launched in January 2018 after an ICO that raised over $36 million. The platform uses a combination of trusted execution environments and multi-party computing to implement cross-chain functionality. Wanchain seeks to build the infrastructure for a new decentralized financial network.
The team behind Wanchain includes industry veterans with experience at companies like Microsoft and Deloitte. The platform was founded by Jack Lu, who previously founded Factom. Wanchain is based in Austin, Texas but the team includes members located globally.
Some key aspects of the Wanchain platform include:
- Cross-Chain Transactions — Wanchain allows for transactions between different ledgers. For example, you can transfer Bitcoin on Ethereum or ERC-20 tokens on Bitcoin. This interoperability is made possible through decentralized intermediaries.
- Private Transactions — Wanchain implements ring signatures and one-time accounts to provide anonymous, untraceable transactions on its network. It also uses secure multiparty computing to keep transaction amounts hidden.
- Smart Contract Support — Wanchain allows smart contracts to be built on top of its cross-chain infrastructure. Decentralized applications can be designed to take advantage of Wanchain’s connections between chains.
- Proof of Stake Consensus — Wanchain uses a proof of stake consensus mechanism to validate transactions. WAN token holders can stake their coins to earn rewards.
Key Features and Use Cases
As a platform focused on interoperability, Wanchain aims to unlock several key use cases:
- Cross-Chain Finance — Wanchain makes it possible to conduct decentralized financial transactions across blockchains. For example, decentralized exchanges can leverage Wanchain to offer wider support for assets.
- Cross-Chain NFT Markets — Non-fungible tokens can move across networks thanks to Wanchain’s platform. An NFT minted on Ethereum could be sold on a Polkadot marketplace.
- Cross-Chain Lending — Decentralized finance loans and collateral can work across chains with Wanchain’s help. A loan originated on one network may rely on collateral locked on another.
- Multi-Chain Wallets — Wanchain enables wallets that can hold assets from different chains together. Users can hold BTC, ETH, and other tokens in a unified wallet interface.
- Chain Integration — As a connector hub, Wanchain offers an easy point of integration for networks looking to bridge to other chains. New partnerships continue to expand Wanchain’s reach.
Wanchain also supports isolated ledgers and consortium networks, allowing enterprises and institutions to take advantage of blockchain technology.
The WAN token is an ERC-20 token deployed on Ethereum. It is used to pay transaction fees, secure the network via staking, and provide governance over Wanchain’s decentralized organization. Key details include:
- Total Supply — 210 million WAN tokens will ever be created. No additional tokens will be minted after the genesis supply is created.
- Consensus Node Requirements — Validators on Wanchain must stake at least 150,000 WAN to run a node that participates in consensus and block production.
- Transaction Fees — 0.1% of each transaction value is paid to validators as a fee. These fees are paid using WAN tokens.
- Staking Rewards — Validators earn percentage-based rewards on the WAN they stake to secure the network. Wanchain implements validator rewards of around 10-15% annually.
WAN had a long-term downtrend in price and market cap after peaking in early 2018. However, it still maintains a top 100 position and has seen renewed growth in 2021-2022. As Wanchain expands its cross-chain ecosystem, WAN may realize more of its long-term potential.
The Future of Cross-Chain Interaction
Wanchain represents one of the earliest and most ambitious projects focused on inter-blockchain communication. Cross-chain bridges have become an essential component of the larger blockchain ecosystem. Chains like Polkadot and Cosmos also offer some interoperability features.
However, no single project has yet achieved the full vision of seamless chain integration. There are still improvements to be made in areas like security, decentralization, transaction speed, ease of use, and widespread adoption. As more assets move onto blockchain networks, the need for unfettered cross-chain communication will only grow.
If Wanchain can continue enhancing its technology while expanding partnerships, it has the potential to be a core building block of the decentralized finance system of the future. Already supporting Bitcoin, Ethereum, WAN, and numerous other tokens, Wanchain aims to eventually facilitate free exchange of all digital assets across any blockchain network.
Wanchain represents an ambitious vision for the future of decentralized finance and blockchain technology. By enabling cross-chain transactions and communication, Wanchain seeks to remove the limitations of isolated networks.
If successful, projects like Wanchain could massively expand the usability of existing blockchains and digital currencies. With its combination of pioneering technology and real-world use cases, Wanchain is one of the most promising blockchain platforms to watch in the coming years.