What is Wanchain?
Wanchain is a platform enabling decentralized transfer of value between isolated blockchains. Similar to how Wide Area Networks connected all the isolated Local Area Networks of the early years of the internet, Wanchain is creating what is essentially the Wide Area Network (WAN) of blockchains.
How does it work?
Wanchain uses a proprietary cross-chain mechanism to lock funds in each respective blockchain and creates proxy tokens on Wanchain in a wrapped form to be used in the Wanchain ecosystem. For example, 100 ETH would be locked on the Ethereum blockchain using smart contracts, which would then mint 100 Wanchain-wrapped ETH on Wanchain (WETH). These WETH could then be traded on a DEX for WBTC (Wanchain-wrapped BTC) on Wanchain. When the use or dApp wants to redeem the original tokens on the native blockchain (e.g. Ethereum or Bitcoin), then smart contracts would be executed to release the locked tokens.
What Wanchain aims to solve?
Wanchain is trying to solve one of the toughest challenges in the industry – the need to enable transfer of value between isolated blockchains. They are not only bridging public blockchains like Ethereum or Bitcoin, but are also working in the enterprise realm to bridge the traditional economy to the blockchain-based economy, or Web 3.0.
What are the features of Wanchain?
Wanchain’s key differentiators are its cross-chain technology and privacy features. It is a fork of Ethereum, so it has smart contract capability as well. They currently have privacy capability for native WAN transactions, and plan to implement privacy for all cross-chain transactions in the near future.