What Are the Newest Developments at Wanchain?
Find out in Our Most Recent AMA.
The news about our new Convert ‘n Burn System has generated a lot of excitement, expectations and questions from our community.
To make sure we answer them all, and keep you up the speed with everything important that’s happening in Wanchain, we recently did an AMA with Altcoin Buzz. Our CEO Temujin Louie revealed many intriguing facts.
Continue reading this article to discover:
- The 7 benefits that the Convert ‘n Burn System brings for you.
- What led Temujin to start working at Wanchain.
- The new burn mechanism — find out the details on how WAN coin gets burned on daily basis.
- Why we need a similar protocol to TCP/IP for blockchain and what is Wanchain doing to develop it.
- And much more…
Let’s get started right away!
Host:
Temujin, could you tell us about how you started your crypto journey and how you ended up joining Wanchain?
Temujin:
Sure, happy to share. My journey began during my time as a grad student at the London School of Economics around 2012. While focusing on my thesis, I stumbled upon Bitcoin and it really intrigued me. It shaped my perspective on global power structures. After graduating, I spent a decade in China, where I witnessed the ICO boom of 2017. This further fueled my interest in blockchain. As a result, I worked with various blockchain startups and multinational corporations exploring blockchain technology. I joined Wanchain a few years ago initially as a VP of Marketing and now serve as CEO.
Host:
That’s fascinating. How big is your team at Wanchain?
Temujin:
We’re a mid-sized team of about 40 people, primarily composed of developers. We place a strong emphasis on research and development, which is core to our operations across departments.
Host:
That’s impressive for a blockchain company. The team must be crucial for your success. How has your team’s effort contributed to Wanchain’s mission?
Temujin:
Absolutely, our team is incredibly dedicated. They’ve made significant strides in the interoperability space, and we’re proud of our low turnover rate, which shows their commitment and passion.
At Wanchain, many of our team members have been with us for several years, which is a testament to their belief in our vision.
Host:
That’s impressive, especially in the blockchain industry where turnover can be high. It speaks volumes about your internal work culture. Now, for those who may not be familiar with Wanchain, could you explain what Wanchain is and what services you offer?
Temujin:
Certainly. Wanchain is one of the pioneering projects in blockchain interoperability. We focus on research and development to connect different blockchain networks. Our goal is to create industry-wide standards that enable billions of users to seamlessly interact across various blockchains. Practically speaking, we build bridges that facilitate data and asset transfer between different chains — both Ethereum Virtual Machine (EVM) compatible and non-EVM networks. We officially launched in 2017 and introduced the industry’s first decentralised cross-chain bridge in 2018.
Host:
Got it. So Wanchain acts as a crucial bridge between different blockchains. With so many bridge solutions available now, what sets Wanchain apart? Why should users choose Wanchain over other options?
Temujin:
While I wouldn’t discourage users from exploring other bridges, there are several unique aspects that make Wanchain a preferred choice. First and foremost, our extensive experience sets us apart. We’ve been operational for years without a single security breach, a rarity in this industry plagued by hacks. This impeccable security record is due to our commitment to maximum decentralization and stringent protocol design.
Additionally, Wanchain supports bridging to non-EVM networks, which is technically challenging and not widely offered. We connect with blockchains like XRP Ledger, Cardano, Litecoin, and Bitcoin, among others, and continuously expand our network compatibility.
Furthermore, our bridge architecture ensures direct asset transfers without the need for swapping, eliminating slippage concerns. Whether transferring small amounts or large sums like 10 BTC, users receive exactly what they expect on both ends of the transaction. That’s really what sets Wanchain apart.
We also excel in speed, cost-effectiveness, and support for a wide range of assets, making our platform highly attractive to end users.
Host:
Absolutely. The fact that Wanchain has maintained a flawless security record for over six years is remarkable, especially considering the vulnerability of bridging mechanisms in the blockchain industry.
Going back to 2018, Wanchain pioneered decentralised bridging by connecting major blockchains like Bitcoin and Ethereum directly. Could you elaborate on how the bridging landscape has evolved since then, and what milestones Wanchain has achieved?
Temujin:
Back in 2018, interoperability was mainly about consolidating assets onto a single chain. Today, the focus has shifted towards enabling different blockchains to interact seamlessly without a central intermediary. Wanchain has been at the forefront of these changes. We launched the industry’s first decentralized cross-chain bridge in 2018, connecting Bitcoin and Ethereum directly. We also introduced concepts like ‘lock → mint → burn → unlock’, where assets are locked on one chain and minted as wrapped assets on another, which has become industry standard practice.
Host:
It sounds like Wanchain has set the bar high for interoperability standards. Looking ahead, do you foresee any new technologies or approaches that could potentially replace wrapped assets, or is this method likely to remain the norm?
Temujin:
Unless there’s a fundamental shift in how blockchains operate, wrapped assets are here to stay. For instance, Bitcoin can only exist on its native network, so interoperability solutions will always require a virtual representation of assets on other chains. For example, if you want to leverage Bitcoin value on other chains, you’ll always need some virtual representation of that asset. There’s no native BTC on Ethereum, and unless there’s a drastic change, there won’t be. We might move away from the term “wrapped assets” because one downside is that each bridge mints its own version. In the last cycle, multiple wrapped versions of USDT caused confusion as they were wrapped by different bridges, leading to poor user experiences.
Host:
We’ll likely see improvements with universal standards ensuring bridges follow secure cross-chain practices. Users should be cautious of protocols claiming bridgeless cross-chain transactions — it’s crucial to understand how data and assets move between chains.
Clickbait protocols claiming bridgeless transactions should raise red flags; understanding their operational details is essential to avoid misleading claims.
Going back to another important part. Yesterday, you did the big reveal of Convert ‘n Burn, a system launching new bridge discounts and benefits. Can you elaborate on that?
Temujin:
Sure, this announcement was eagerly awaited by the Wanchain community. It’s part of our vision for 2024 and beyond, focusing on unification. Over the years, we’ve built various components within our ecosystem, but there’s been valid criticism that they haven’t been integrated together well. Convert ‘n Burn aims to change that.
It aligns the Wanchain Bridge, our layer one blockchain, and WAN coin into a more cohesive whole. When one part succeeds, it benefits the entire ecosystem and community. This is the philosophy behind Convert ‘n Burn.
As our bridge has processed billions in cross-chain volume, we’re starting to collect fees soon. These fees will be converted into WAN coin, and then reinvested across different categories to benefit the entire Wanchain ecosystem.
Essentially, the more the bridge is used, the greater the benefits for everyone involved. Additionally, holders of WAN coin will receive discounts when using the bridge, creating a formal discount system. The more WAN coin you hold or stake in our bridge nodes, the greater the discounts you receive.
In summary, Convert ‘n Burn integrates all facets of the Wanchain ecosystem, ensuring that success in one area translates into benefits for the entire community. It’s making sure that the project can continue on covering the gas costs that are incurred by the Wanchain Bridge whilst also creating value for the entire Wanchain ecosystem.
Host:
Got it. So I’m going to go one by one into all the points that you’ve just mentioned. So let’s begin with the first one. You mentioned that the funds are going to be earmarked. So what are these funds going to be used for primarily?
Temujin:
Yeah, we’ve allocated these funds across five categories. After converting into WAN, 40% will go into a community treasury. This fund will be managed by the Wanchain community itself. Then 30% will support the ongoing operations of the Wanchain Bridge. This ensures that our bridge can run in perpetuity while covering necessary gas fees.
Another 10% will incentivize Wanchain bridge nodes and delegators, with a similar 10% allocated to incentivize POS nodes and delegators. Lastly, 10% of WAN will be burned. This direct burning mechanism means that increased bridge usage results in more WAN being burned, adding value across the Wanchain ecosystem.
Host:
And how will the tokens that you collected be converted into WAN? Will it happen as soon as it’s received in your wallet or will there be a monthly or quarterly burn that you guys will be doing?
Temujin:
We’re processing fees and assets from over 30 different networks, covering a wide range of assets. All conversions will happen on-chain regularly on an ongoing basis. We aim for ongoing processes to avoid predictability that could be exploited, and we use tools to manage this.
Host:
Regarding WAN coin utility, having WAN in your wallet or staked provides discounts while using bridges. I think that’s some good utility that you have for the WAN token. Also, you mentioned a community treasury. Can you explain the community treasury concept further? How will it operate, and will there be governance or proposals?
Temujin:
The community treasury signifies our move towards greater community ownership. Initially, it will function as a platform where community proposals are voted upon. The community’s decisions will dictate how funds from the treasury are utilized. Over time, this will evolve into a more comprehensive governance system. Details on voting mechanisms and other specifics will be shared as we progress through phase one.
Host:
Excellent. So, community, make sure to follow Wanchain on Twitter and subscribe to Altcoin Buzz for the latest updates. We’ve been partners with Wanchain for a while, ensuring you get the first scoop on all the important updates. Now, diving deeper into our discussion, many are excited about the token side of things. While you can’t comment on WAN’s price action, what utility does the WAN token offer?
Temujin:
Well, first and foremost, WAN token is the native asset of the Wanchain ecosystem, akin to ETH on Ethereum. It’s essential for all transactions on the Wanchain Layer 1, serving as gas fees. Secondly, Wanchain Layer 1 operates on a Proof-of-Stake (POS) model. Staking WAN allows you to become a node, earning rewards for securing the blockchain.
If running a node isn’t your thing, you can delegate your WAN to another node and still earn rewards. This staking mechanism also applies to the Wanchain Bridge, where WAN secures the network. Bridge nodes stake WAN, and you can participate by staking through platforms like XStake on our web platform.
Host:
Thank you for breaking that down. It’s clear that WAN plays a crucial role in both transactional fees and securing the network through staking. This dual utility is certainly valuable for users looking to engage with Wanchain’s ecosystem.
Temujin:
Yes, and as for some additional utility, you can easily stake your WAN for yield through platforms like XStake. Additionally, with the introduction of Convert ‘n Burn, holding or staking WAN in bridge nodes gives you discounts on transactions across the bridge. All bridge fees now convert into WAN, creating added value for WAN holders.
Host:
Understood, it seems holding WAN provides significant incentives. Another notable aspect is the circulation of WAN tokens. According to CoinMarketCap, the maximum supply of WAN is 210 million, with nearly 198 million currently in circulation. This limited supply indicates no major increases are expected, which is generally positive. WAN is traded on major exchanges, ensuring liquidity and accessibility for investors looking to engage with the token.
Furthermore, WAN’s fully diluted valuation (FDV) and market cap are relatively modest, around $44 million. Given Wanchain’s capabilities compared to other projects with higher valuations, there appears to be significant room for growth and potential appreciation, especially considering its longstanding presence in the market.
These factors collectively make WAN tokens a compelling investment opportunity. It’s important to note that these observations are based on market analysis and not endorsements from either Wanchain or Altcoin Buzz and do not constitute financial advice.
Now, let’s answer some questions from the community!
What is cross-chain messaging technology?
Temujin:
Good question! This is actually something we’ve been working on and are looking forward to releasing. Cross-chain messaging technology essentially enables the transfer of data between different blockchains. While this concept might seem abstract for end users, it’s incredibly powerful for developers. It allows them to trigger smart contracts on one blockchain from another. For instance, a developer on Avalanche could utilize Wanchain’s cross-chain messaging platform to interact with a smart contract on Polygon. The potential applications of this technology are vast and only limited by developers’ creativity.
This capability is pivotal for creating truly cross-chain applications that operate seamlessly across multiple blockchain networks. We’re making significant progress in this area, and while we’re not quite ready to unveil it publicly just yet, we’re eagerly anticipating its launch. This upcoming launch will not just be a proof of concept but the first public implementation of many industry-wide standards we’ve been discussing recently.
My answer might get a bit detailed, but it’s important to understand how Wanchain operates within the Enterprise Ethereum Alliance (EEA). Our VP of engineering, Dr. Zhang, leads interoperability efforts at EEA, where we contribute significantly to academic and R&D activities.
We’ve recently co-authored extensive cross-chain standards published by the EEA. This collaborative approach has been central to Wanchain’s longevity and security record. Our process begins with rigorous research, peer review, and vetting by external teams, ensuring robustness.
When we release our cross-chain messaging platform, it will reflect years of collaborative effort. It’s not just a proof of concept but the first public implementation of industry-leading standards developed alongside our EEA partners.
Host:
Got it. I hope that answered the committee member’s question. Let’s move on to the second question, which discusses the need for a unified and standardized protocol connecting all blockchains, akin to the TCP/IP protocol that powers the internet. Can you elaborate on how this will function and what additional benefits it may offer?
Temujin:
Absolutely. This ties closely to the upcoming message-passing protocol I mentioned earlier. Currently, blockchain interoperability projects operate in a fragmented manner, each developing solutions independently. This creates confusion for users, enterprises, and governments trying to navigate the space.
Also there’s a multitude of approaches to transferring data across chains, with varying considerations like centralization, decentralization, security, and speed. It’s akin to the Wild West out there. Without a standardized base layer, interoperability efforts can lack coherence.
Much like TCP/IP on the internet, a unified blockchain protocol provides a secure, universally accepted standard. This foundation enables developers to build interoperable solutions with confidence, ensuring compatibility across different blockchain networks.
And you know, once we have a standardized protocol, then we can start developing products, monetizing them, and advancing the industry as a whole. But up until now, we’ve bypassed that crucial initial step. We haven’t collectively agreed on the safest and most effective methods for transferring data between blockchains. Instead, we’ve jumped straight into creating products.
Without this foundational agreement on best practices, achieving mainstream adoption of blockchain becomes extremely challenging, especially when we’re talking about involvement from enterprises and governments. Unlike early adopters who are more willing to take risks, these entities handle vast sums of money and require robust security assurances.
Until interoperability standards are established, it’s difficult for enterprises and governments to fully trust blockchain technology’s security. This is why interoperability standards are crucial.
Host:
I hope that answers the next question as well. Moving on to the next one, it’s something that probably not just the community members, but all of us would like to know: What’s the roadmap going to look like for Wanchain this year, and are there any major updates that the community should keep an eye on?
Temujin:
Oh, apologies. Yeah, as I mentioned earlier, the Convert ‘n Burn initiative was a significant milestone on our existing roadmap. Additionally, we have the Cross-Chain Message Passing Protocol coming up soon. These are both major pillars aimed at unifying the ecosystem.
So, that’s really what you can expect from everything we’re doing in 2024 and beyond — a focus on better integrating all components of the Wanchain ecosystem to ensure mutual success.
In the coming months, we plan to formally update our roadmap, which was last published over a year ago. Many items on that roadmap are either completed or nearing completion, so we’ll be unveiling the next phase within a few months.
Host:
And another question that has been asked, I think you’ve answered: “How does the future of crypto bridging look like?” But would you like to add any more to it?
Temujin:
Yeah, let me approach it from a different angle. The future of crypto bridging, or interoperability, revolves around establishing a maximally secure base layer — akin to the universal standard of TCP/IP in blockchain.
This standard will be open and multiple projects and bridge operators will build upon it, each making different trade-offs while adhering to the core standard. These trade-offs could involve factors like cost-effectiveness or specific use case optimizations.
The differentiation among bridge operators will lie not in how they verify and confirm cross-chain data, as that will be dictated by the universal standard.
Host:
Got it, got it, got it. I personally had a question myself. What do you think of the market right now? Again, not financial advice for the community, but what do you think of the market?
Temujin:
I definitely don’t think we’re in full bull mode at the moment. It seems like the enthusiasm hasn’t fully shifted to altcoins yet, although Bitcoin has been performing well. I anticipate more sideways movement for a while.
However, I believe we’re in a transitional phase between bear and bull markets. I think we’re on the brink of the next major cycle here.
Host:
Got it. So I think we’ve covered most of the community questions. Once again, Temujin, thank you so much for joining us. It’s been a wonderful session.
Before we wrap up, could you provide a brief overview of what the Wanchain ecosystem’s future looks like?
Temujin:
Yeah, thank you for having me. It’s been a great discussion. Right now, it’s an exciting time for the Wanchain ecosystem. Our community, especially our long-standing members, really see the value in the Convert ‘n Burn mechanism. It’s something they’ve been eagerly awaiting.
To our community, I want to emphasize that this Convert ‘n Burn isn’t the end, but the beginning of what we call the unification era. Every major component we introduce from now on will further unify the Wanchain ecosystem. This includes strengthening our Layer 1 blockchain, enhancing the utility of the WAN coin, fortifying our bridge infrastructure, and unveiling new products.
There’s a lot to look forward to, and I’m excited to embark on this journey with all of you. Thank you again.
* This is a condensed version of the Altcoin Buzz AMA streamlined for better reading experience.
Conclusion
The upcoming launch of the Convert n’ Burn System will usher in a new era of unity for Wanchain. Creating considerable added value for Wanchain Bridge, WAN coin and Wanchain Layer 1 blockchain.
Join us on this exciting new journey!
About Wanchain
We are all connected — Wanchain, the Wide Area Network chain, is the world’s premier decentralised blockchain interoperability solution. Our mission is to drive blockchain adoption through interoperability by building fully decentralised bridges that connect the world’s many siloed blockchain networks. This cross-chain infrastructure empowers developers to build truly decentralised cross-chain applications to power the future of Web3.
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