Wanchain features cross-chain smart contracts by aiming to produce a dispersed financial infrastructure in order to act as fuel for the future digital market. The main vision for operation of Wanchain is that the world is heading in the direction of a digital economy.
As a matter of fact, their vision is somewhat correct as you can see a large number of people who are following Bitcoin. Since the economy is moving towards a digital one, at some point in future the market will be saturated with digital currencies.
Wanchain is an independent blockchain and it links the independent digital currencies to establish a framework and provide a decentralized method to exchange value between different blockchains, tokens and coins.
Apart from currency transfers, Wanchain can be used to build countless financial applications by using the native Wancoin (WAN) token, privacy protection protocols, and smart contracts. Let’s see how it actually works.
Basic Idea of Wanchain
Ethereum can be considered as the founding father of Wanchain, but Wanchain is an entirely different blockchain. The cross-chain communication protocol is its foundation, although there are many other parts of this platform.
Cross-chain Communication Protocol
This protocol is responsible for transferring data between Wanchain and other blockchains. The main functional modules of this protocol are the registration module, cross-chain transaction data transmission module, and transaction status query module.
The Registration Module
As the name suggests, it helps to register the transaction chain and its assets.
The Cross-chain Transaction data Transmission Module
It is responsible for the transaction process. It first sends a request, then verifies it and later on facilitates it upon verification.
The Transaction Status Query Module
It is monitored by the transaction status.
Verification Node Consensus Algorithm
Since Ethereum followed the Proof-of-Stake (PoS) consensus algorithm, Wanchain will also use it. The alternative algorithm is Proof-of-Work (PoW). The reason for using PoS instead of PoW is that Proof-of-Stake saves more energy as it utilizes less electricity.
The network contains three types of verification nodes. These nodes are responsible for splitting the transaction fees and for maintaining the entire network.
The transaction fee helps to provide a security deposit to the Vouchers, which are cross-chain transaction proof nodes. In response, Vouchers provide a proof for the transaction that took place between the Wanchain locked account and the original account. In case of a false proof, the Voucher cannot approve transactions and the holding account has to return the security deposit.
In exchange for some part of the transaction fee, Validators, which are general verification nodes, record the data on the blockchain of Wanchain.
Storemen are locked account management nodes that stay online to get their part of the fee by maintaining their key shares.
Locked Account Generation Scheme
This scheme which is provided by Wanchain is for multiple holders of an account. It helps in securing keys and funds. The foundation of Locked Account Generation Scheme is SSSS (Shamir’s Secret Sharing Scheme). In this scheme, the key to an account, after breaking, is distributed in shares to all the parties. Even if a few Validators are offline, the transaction is still possible.
Applications for Wanchain
Like you use other banks, you can use Wanchain in the same way. By using Wanchain, you can finance, invest, carry out digital currency exchanges, perform transactions, make payments, and lend or borrow money. Moreover, you can also use multi-currency credit cards which are based on digital currencies.
When traditional banks commenced, they did not expand rapidly. Initially, they had limited operations like storing and converting currencies. Later on, these banks were involved in financial planning and investments. Similarly, Wanchain will evolve gradually as the reliance on digital currencies increases over time.
Trading and Storing WAN
In the token sale, WAN tokens were purchased by buyers as ERC-20 tokens. However, Wanchain is still not widely available on exchanges.
The WAN wallet can be used to store your WAN and other tokens. Traders can move assets with a private or public transaction. Although the wallet is currently limited in storing WAN only, it will start supporting multiple currencies in future.