The Importance of Blockchain Interoperability
This article meant to educate the blockchain community on what interoperability means and how mass adoption of blockchain technology is dependent on the scalability and cross-chain interaction between all public, private, and consortium blockchains.
The number of digital assets and blockchains are growing at a rapid pace. However, these blockchains remain isolated, operating in their own respective silos. Wanchain is the leading interoperability solution working to bridge all blockchains in order to facilitate financial transactions for the Web 3.0 world.
What is Blockchain Interoperability?
The future of the distributed internet is dependent on the ability of blockchain networks to recognize and interact with one another. The concept of decentralization and blockchain interoperability are closely related. Interoperability is the ability to freely share information across all blockchain networks. In a fully interoperable ecosystem, if a user from another blockchain sends you something on your blockchain, you will be able to easily recognize and interact with it. Blockchain projects that want to implement interoperability into their platform want to create an ecosystem that will enable different blockchains to easily communicate among one another; without the need for an intermediary — like a centralized exchange. There are several ways how Wanchain aims to set the interoperable standard and integrate these concepts into the current system.
The Bitcoin blockchain was launched in January 2009. Since then, many new blockchains have been conceived, each one with its own ecosystem, consensus model, and community.
First, we will compare the current blockchain ecosystem to when the world used thousands of disparate, siloed intranet networks. These networks were able to transfer information, messages, or emails within their own intranet network, but did not have connection to the rest of the digital world until internet pioneers created infrastructure like TCP/IP and web browsers. Wanchain seeks to have the same impact on the decentralized, blockchain-based internet (Web 3.0). An impact that we hope will lead to a world where information and value can transfer between blockchains without any knowledge to the user.
What does this imply?
Let’s say you were to open a bank on the Bitcoin blockchain. You would be able to trade, lend, borrow BTC in a fully decentralized and peer to peer manner. Now let’s say you wanted to trade other assets using the same bank on the Bitcoin blockchain, you would have no way to execute these trades.
The Bitcoin blockchain, working as a silo, has no knowledge of other outside blockchains.
Secondly, we will compare this to a current real-world example. Let’s say you were to open a bank account in the United States, your bank would have access to the USD, EURO, GBP, YEN & other currencies that span the globe, not just the one that’s native to the country where you are opening the bank account.
Wanchain Aims To Solve This Problem
We acknowledge that the future crypto ecosystem will be made up of many heterogeneous blockchains. After Wanchain 3.0 goes live in late 2018, anyone utilizing Wanchain will not only have access to Wancoin and projects built on Wanchain, but also to wrapped Ethereum, Bitcoin, and ERC20 tokens accessible from a single Wan Wallet address.
In the future, we envision a variety of new digital assets being deployed on Wanchain — stablecoins, real estate, commodities, and new protocol tokens from other blockchains.
Our mission is to connect the world’s digital assets, unleashing the full potential of cryptocurrency and blockchain technology by allowing applications built on Wanchain to provide access to digital assets sitting on different blockchains. In the exact same way that today’s banks can provide access to almost all global currencies.
Wanchain & the Future of Interoperability
On September 10th, we announced the launch of Wanchain 2.0, which is fully connected to Ethereum and is “the world’s first and only interoperable blockchain with secure Multi-Party Computing.”
Utilizing a combination of “smart contracts, sMPC, SSSS, and threshold key sharing,” Ether tokens from the Ethereum blockchain can be effortlessly moved and transferred to the Wanchain platform, where they will be represented by equivalent WETH token. Ether can be transferred cross-chain from Ethereum’s blockchain and accurately represented 1:1 on Wanchain’s blockchain with a proxy token called WETH (WAN-ETH). WETH is the proxy token that represents ETH on the Wanchain blockchain. Once this WETH has been sent to another user’s Wanchain address, it can be redeemed where it will be unlocked and the user will receive the ETH in their Ether account within the WanWalletGui.
The development of cross-chain functionality will allow ICOs and dApps on Wanchain to interact with both Wanchain and ERC-20 tokens, as well as other tokens — like Bitcoin (Wanchain 3.0).
By integrating our blockchain to Ethereum, we took a big step towards our long-term mission of one interconnected network of both public and private blockchains. Among other possible applications, integrating with Bitcoin will allow for efficient Wanchain-based decentralized exchanges and ICOs that can interact with a variety of blockchains.
Once interoperability is achieved between the major public blockchains, users will easily be able to transact on other blockchains seamlessly. This will allow for diverse functionalities, including in payments, smart contracts, and data storage. A truly interoperable blockchain network will be the core of the new digital economy.
With privacy and cross-chain being layered with Ethereum’s smart contract technology, Wanchain has the ability to securely transact anonymously and transact across various blockchains.
This month, we announced the Beta for our Mainnet 3.0: Bitcoin Integration. A great amount of time and effort has been invested into this, and we could not be more proud and thrilled to share this milestone with our community members. This is the first time any project has created an interoperable Bitcoin protocol using sMPC, meaning that data and value can be transacted across the Bitcoin, Ethereum, and Wanchain networks, using Wanchain as a bridge to connect the world’s digital assets that were once siloed.
Blockchain technology is becoming more common amongst the masses. The concept of blockchain interoperability is not fully understood by many and is vital for the future growth of the blockchain industry.
Wanchain is a blockchain ecosystem that enables the exchange of digital assets between blockchains with privacy protection and cross-chain smart contracts. The Wanchain infrastructure simplifies the creation of distributed financial applications for individuals and organizations to access financial services such as loans, asset exchange, multi-asset ICOs, and other asset management capabilities. Wanchain 2.0 enables the cross-chain functionalities with Ethereum. Wanchain 3.0, which will launch before the close of 2018, will enable the same functionalities with Bitcoin.