A major driver behind the cryptocurrency and blockchain movement is the goal to disrupt of traditional financial institutions, as these centralized entities function with absolute control and little regard for the average man. While there have been a number of innovative blockchain projects tackling huge market opportunities, there are far fewer looking to build an actual replacement for our current financial infrastructure with a digital equivalent. Given the number of different blockchains being created, there is a growing need for a fully interoperable distributed financial infrastructure.

One project that aims to create what is essentially a distributed-bank is Wanchain, which works to connect and exchange value between different blockchain ledgers in a distributed way through a cross-chain protocol and a distributed ledger that records both cross-chain and intra-chain transactions. Any blockchain network (public, private or consortium chains) can integrate and connect with Wanchain to perform low-cost inter-ledger asset transfers. What’s more, Wanchain’s ledger supports both cross-chain smart contracts and a system of privacy protection through a ring signature scheme and a one-time account mechanism. Ultimately, Wanchain seeks to build a new, distributed infrastructure of digital assets to form an improved and modern framework.

Interested in Wanchain? Here’s a quick rundown of the project:

Platform & Development

wanchain.org

In short, Wanchain is a distributed financial infrastructure that seamlessly connects blockchain networks together to enable individuals or institutions to provide services such as asset exchanges, loan origination, credit payments and transaction settlements based on digital assets. To create this infrastructure, the Wanchain leverages a number of key elements to construct its platforms architecture.

The core of Wanchain’s architecture is its cross-chain protocol. To connect external blockchains and assets to the Wanchain, they first need to be registered on Wanchain via registration protocols. These protocols work to create identifiers that make every external blockchain homogenous with Wanchain’s blockchains, allowing for a single cross-chain mechanism and seamless integration. For cross-chain transactions, Wanchain will create a proxy asset using a built-in asset template to deploy a new smart contract based on the cross-chain transaction information. This proxy system ultimately allows for the creation of cross-chain decentralized applications (DApps).

Wanchain’s distributed ledger builds upon the strengths of Ethereum, and any Ethereum DApp will run on Wanchain without any code alteration. To enhance these applications, Wanchain offers a number of APIs designed to expand cross-chain capabilities and improve privacy protection.

Wanchain’s privacy is achieved through the use of ring signatures, which provide complete anonymity to the signer of a transaction while also providing the receiver with the ability to verify the sender’s signature. Additionally, Wanchain offers the option for One Time Addresses (OTA) to provide further anonymity optionality.

Wanchain leverages two consensus mechanisms, a basic Proof of Stake (PoS) mechanism for ordinary transactions and an incentive mechanism for cross-chain transactions. The incentive mechanism has three major nodes:

  • Cross-chain transaction proof nodes (Vouchers)
  • Locked account management nodes (Storemen)
  • General verification nodes (Validators)

These nodes, which function essentially as masternodes, are all incentivized with a portion of transaction fees to stay online and properly function. In short, the verification node incentive mechanism will motivate the Vouchers to provide correct transaction proof, the Validators to complete the recording of Wanchain faithfully, and the Storemen to stay online and safely keep their own key shares. It’s important to note that with each transaction, Wanchain’s token, Wancoin, is consumed. These coins are also used for security deposits for the cross-chain verification nodes.

There are a number of potential application of Wanchain, as detailed by the Wanchain whitepaper, including the creation of decentralized exchanges, secure and private asset management, and streamlined token creation and listing.

wanchain.org

Wanchain’s roadmap, which is further broken down in its commercial whitepaper, includes a few notable upcoming events. including cross-chain trading with Ethereum and Bitcoin.

Team

wanchain.org

The Wanchain team has deep expertise in both blockchain technology and business development. There is nothing indicating that the team, which is led by blockchain entrepreneur Jack Lu, will not be able to achieve the lofty goals they have detailed in their whitepaper.

Token Financials

Wanchain (WAN) currently has a market cap of ~$490 million with a circulating supply of 106,152,493 WAN and a total supply of 210,000,000 WAN.

CoinMarketCap

Final Take

Wanchain is a newly listed project that has a massive valuation. If they are able to execute on their fairly aggressive roadmap to build out their interoperable framework, Wanchain could see additional value creation. We will watch to find out how they compete with similar projects like Ark and Aion.

More: How Wanchain is Rebuilding Finance with Private Cross-chain Smart Contracts
Related: Ark: An Ecosystem of Linked Blockchains

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Disclaimer: The author(s) of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.