What Is Wanchain (WAN)?
WAN is the native token of Wanchain, which is a Layer 1 blockchain and an interoperability solution. If you’re interested in the current WAN price, check out the Wanchain price chart above.
Since Wanchain is a fork of Ethereum, it provides users with an environment that is fully compatible with Ethereum’s dApps, protocols, and tools. As an interoperability solution, it connects different blockchains and allows users to make cross-chain transactions. It connects public, private, and consortium chains using bridges, this way eliminating the need for centralized middlemen. To protect cross-chain assets, the bridges use Secure Multiparty Computation (sMPC) with Shamir's Secret Sharing.
Overall, there are three types of bridges on the Wanchain network:
- Direct Bridges. Whenever there’s a transaction, Direct Bridges create a wrapped token on the destination blockchain after locking the original asset on the source network. The wrapped token can always be burned by the user to get back the original asset. This method is called lock-mint-burn-unlock.
- Layer 2 Bridges. In this case, both the source and the destination chains have liquidity pools created for that certain asset. Users have to deposit their assets into the source chain for the same amount of assets to appear in the liquidity pool of the destination chain.
- NFT Bridges. These bridges are similar to Direct Bridges due to their lock-mint-burn-unlock method. However, they are usually customized for each project individually.
In addition to different types of bridges, there are also three types of functional modules that allow cross-chain communication:
- Registration module. It tracks asset transfers and registers the original chain.
- Cross-chain transaction data transmission module. It performs cross-chain transactions.
- Transaction status query module. It monitors cross-chain transactions.
Besides, note that decentralized collateral pools that are managed by Wanchain's Bridge Nodes serve as the foundation for all of the network's cross-chain bridges. Bridge Nodes, also known as Storeman Nodes, are in charge of carrying out and confirming cross-chain transactions. Operators of Bridge Nodes are required to stake WAN tokens as collateral.
Lastly, keep in mind that Wanchain utilizes a Proof-of-Stake consensus mechanism called the Galaxy Consensus. To enhance the random number generation and block creation procedures, Galaxy makes use of a number of cryptographic techniques, such as distributed secret sharing and threshold signatures. Essentially, Galaxy Consensus is a continuation of Cardano's Ouroboros.
The Founder of Wanchain
The Wanchain crypto project was founded in 2017 by Jack Lu. He is the CEO of Wanchain. Prior to founding Wanchain, Lu was a developer at Reynolds and Reynolds, a software architect at L Brands, Xerox, and Hewlett-Packard, as well as the tech lead at Tween Brands. Besides, he also co-founded Factom and Wanglu Tech.
Use Cases of WAN Tokens
Wanchain tokens were initially issued on an ERC-20 token standard. However, they were adapted to the Wanchain as its native coin once the mainnet was launched. There are three main use cases of WAN tokens – governance, means of payment, and staking.
As a governance token, WAN provides its holders with the possibility of deciding the future development of the Wanchain crypto project. As a payment method, WAN coins are used to pay any costs that occur while using the platform. This includes paying for native and cross-chain transactions. In terms of staking, as mentioned before, users have to stake WAN tokens to become Bridge Node operators, as well as participate in the consensus mechanism of Wanchain.
Besides, don’t forget to check out the Wanchain price chart above to see how its value changes over time.
Tokenomics of WAN
The max supply of WAN tokens is 210 million. The initial coin offering (ICO) of WAN tokens took place in 2017 when the tokens were still based on an ERC-20 token standard. However, a year later, they were exchanged for the native coins of the Wanchain network.
More than half of the supply (51%) was dedicated to investors in the ICO. The remaining portion was split between the development team and the Wanchain foundation, as well as dedicated to rewards and airdrops.
If you plan to buy Wanchain coins, just note that the WAN price is liable to change. This happens because, similarly to the pricing of other digital assets, the volatility of the overall crypto market has an effect on the Wanchain price. Thus, always make sure to analyze how it fluctuates before making a purchase.
