Wanchain (WAN) Blockchain Interoperability with Ethereum via Atomic Swaps Is Operational
Wanchain’s Bridge To The Ethereum Blockchain Is Now Operational
Recently, a former JP Morgan blockchain program lead and current CEO of Clovyr, Amber Baldet, has stated that the blockchain industry has a growing problem: each blockchain speaks a different language and they are not compatible.
As many protocols are popping up every day and we have now EOS, NEO, Cardano, Tezos, Stellar, Tron and many other ones that are getting popular, it is not only Bitcoin and Ethereum that are popular anymore. Because of this, interoperability between systems is getting increasingly important and complicated in the industry.
However, it looks like there might be a light at the end of the tunnel for the people who want a bridge for cryptos: Wanchain.
Wanchain To Bridge Gap Between Blockchains
Wanchain 2.0 is LIVE – Wanchain is now fully interoperable with Ethereum! Please read our 2.0 launch Medium article for more information on this monumental launch:
— Wanchain (@wanchain_org) July 23, 2018
Wanchain is a company based in Austin and Beijing both. The blockchain company has just released the 2.0 version of its protocol, which is intended to be used by decentralized transactions between different blockchains in a process called Atomic Swap. They are generally made between the Ethereum blockchain and some other chain.
The company was one of the first ones to be able to really pull of cross-chain transactions, which have been talked about a lot recently but generally end up not being 100% viable most of the time or are still incomplete or in Beta testing. The main focus of the project is to link blockchains and allow the multi-asset ICOs to be interchangeable, which could help startup companies.
Wanchain had a token sale in 2017 to launch its ERC-20-based token. The company raised 121,500 ether, which amounted to $37 million USD at the time of the ICO. In January, the company started to use its own blockchain.
At the moment, the only solution offered by Wanchain is Ethereum transactions, which can be transferred back and forth between the Ethereum network and Wanchain. However, the main goal of the company is to be able to create a way to seamlessly integrate most of the popular blockchains that exist into the system in the near future.
The founder and CEO of the company is Jack Lu, which has declared that this is a very exciting time for the company and that the vision of Wanchain is to reshape the world of digital assets to form something new and exciting.
How Does Wanchain Work?
According to the CEO of Wanchain, different blockchain platforms work using different consensus algorithms on them, which can be a technical challenge because the protocols are not compatible.
Lu believes that this is only the first problem of many that will have to be addressed in the future. Bitcoin was an important milestone because it was able to decentralize the system at the same that it solved the double spend problem and this stopped people from being able to stop someone from spending Bitcoin many times, but that was only the beginning.
If double spending is hard to do on a single chain, when you connect many different protocols, it is even harder. The solution devised by the company was to create a specialized group of nodes called “storemen”, which are useful because they use a unique technique called “secure multiparty computation”.
This enables the chain to lock a certain amount of Ether outside of the Ethereum blockchain, which means that the money is not destroyed but it is also not spendable anymore because it is isolated.
From this, the company created “mapping tokens”, known as WETH. When the user wants to transfer the money back to the Ethereum blockchain, the WETH that was created before is destroyed and the original token is unlocked from its cage and it goes back to the person.
The old token is unlocked via cryptography and the storemen are important because they will hold parts of the key that will unlock the fragments of the token. This way, double spend is prevented while the WETH is still on the chain because the system will know that the token has to be locked outside of the chain.
Other companies like Aion have recently released testnets for similar projects like Nuco, which also are intended to bridge the Ethereum blockchain. However, these companies are not necessarily competitors, as both joined Icon, another project aimed at cross-chain communication.
They will also help to form the Blockchain Interoperability Alliance at the end of 2018 to prevent confusion to arise in the ecosystem for competing standards of cross-chain communication.
More Than Just Interoperability
While cross-chain exchanges are the primary goal of the company, the project also intend to become a platform for ICOs. At the moment, you can use ETH and WAN tokens on the platform. Soon, ERC20 tokens will also be compatible and Bitcoin at the end of the year.
At the moment, Wanchain is incubating a total of six ICO projects and there are already plans to use even fiat currency on the company during the ICOs. Wanchain will, if the company is really as successful as it intends to be, connect not only chains, but the whole blockchain market.