Wanchain: The Intermediary for Digital Assets
What is Wanchain?
At its core, Wanchain is a ledger based on the Ethereum network that is designed to support programmable smart contracts. Through a proof of stake consensus algorithm and a three different types of nodes, the network can initiate cross-chain transactions. Wanchain is a speculative altcoin. It's token sale was only completed in October of 2017. In January, the team launched the mainnet, and in March it was listed on Binance. (This is why Coinmarketcap.com only has Wanchain prices since March) So how exactly does Wanchain bridge the gap between two blockchains? Assuming that both assets are integrated with Wanchain, so they can be uniquely identified, a user can initiate a cross-chain transactions request, using the Wanchain wallet. This sets up a transaction on another digital asset's network. Let's use Ethereum as an example. Upon receiving the request, an Ethereum transaction send ether. The recipient is a locked account. A validator node will then verify that the transaction was sent before creating a smart contract token that represents the locked Ethereum on the Wanchain network. Sending the Ethereum asset back to Ethereum is a similar process, but the whole thing is done in reverse. Since the transaction is initiated on the Wanchain network, we are already dealing with an ETH asset and not actual Ethereum. This time it is the ETH asset that is locked up and verified by the validator node, and then using something called a threshold secret-sharing mechanism an Ethereum transaction is created that moves an equivalent amount of ether from the locked account to the recipient’s account. "In our cross-chain transaction solution, the account locking mechanism doesn’t use two-way anchoring, and doesn’t need additional script extensions to identify and verify the Simple Payment Verification (SPV) proof. All transaction data is transmitted into the node network of the original chain after reconstruction and integration on the Wanchain validator node. The format of the validator node is in line with the transaction type requirements. This enables certain operations and computations of cross-chain transactions to be completed within the Wanchain network, without the need to modify the various original chain mechanisms. This allows existing public and private chains, based on other platforms, to be integrated with Wanchain with a low integration threshold, thus reducing the cost of cross-chain transactions." Wanchain Whitepaper One day, Wanchain will be able to exchange all ERC20 tokens. It isn't limited to tokens and cryptos either. When an unregistered asset is transferred from the original chain to Wanchain, Wanchain will create a new asset using a built-in asset template to deploy a new smart contract based on the cross-chain transaction information. When a registered asset is transferred from the original chain to Wanchain, Wanchain will issue the corresponding equivalent tokens in the existing contracts to ensure that the original chain assets can still be traded on Wanchain. This puts it into competition with altcoins like OmiseGo, Kyber network, Stellar and ICON. If you want more than a superficial understanding of the maths and cryptography at play, Wanchain has a yellowpaper, that goes into how technologies like threshold secret-sharing algorithm, ring signatures and elliptical curve cryptography all secure this blockchain. It is actually a great resource for understanding how blockchains hide themselves behind pseudo-random function inputs to NP problems.
How Does Wanchain Reach Consensus?
What Does Wancoin (WAN) Do?Wancoin is the native coin to the Wanchain network. While other digital assets can be sent on the network, using Wanchain for cross-chain and inter-chain transfers consumers a certain amount of Wancoin. Wancoin also has value because a certain amount of them are required to stake on the network. Staking is a form of passive income. The more popular the network, the better the return for stakers. As this happens, the value of Wancoin will increase due to demand for this investment vehicle.
Should I Invest in Wanchain?
I think that Wanchain is an undervalued altcoin. It is only listed on a single exchange and rarely exceeds 15 million 24 hour trading volume. Considering the scope of the interoperability use case, this is nothing. When we talk about use cases, in this bubble, we are talking about a long term investment. Short term, Wanchain's investment prospects will be a result of announcements, partnerships, and their progress towards funding ICOs. The team has shown aptitude towards forming partnerships and creating news worthy events. They have a partnership with the well regarded Kyber Network. It is a decentralised exchange and top 100 altcoin. Wanchain are also part of the interoperability Alliance. ICON, Wanchain and Aion have committed to a shared goal of promoting interconnectivity between isolated blockchain networks. An affiliation with ICON, a cryptocurrency that's almost in the top 20, and Aion a top 50 cryptocurrency, could bring a lot of exposure to Wanchain.