Breaking down DeFi silos and focusing on Wanchain, the financial hub that empowers the interconnection of all chains

In this session, AMA invited Wanchain Founder and CEO Lu Xujun. He reviewed the technology iteration and development of Wanchain since its establishment in 2017, and introduced the mechanism and advantages of multi-chain interconnection and future plans.

Here is the text of this AMA, enjoy it!

Q1: It’s your first time to be a guest of True Satoshi community, can you give us a brief introduction of the Wanchain project from your perspective? What is its vision and mission?

Wanchain is the world’s leading distributed financial infrastructure with cross-chain capability.Wanchain was founded in 2017 and has been committed to cross-chain infrastructure research, development and innovation since its creation.At the beginning of the New Year in 2021, the new “pledge sharing multi-chain cross” mechanism went online on the main network, Wanchain pioneered the mechanism based on the Wanchain pioneered the world’s first BTC-ETH decentralized direct connection bridge based on this mechanism. In the past few years, Wanchain has integrated several mainstream heterogeneous public chains, such as Bitcoin, Ether, Ripple, EOS and Coinan Smartchain, and the cross-chain integration with other public chains, such as PoC, will come out one after another.

The PoS “galaxy consensus” mechanism developed by Wanchain ensures the normal operation of the chain and the security of the assets on the chain, while the “multi-chain crossover” mechanism developed by Wanchain ensures the complete decentralization of asset cross-chain transactions and the security of cross-chain transactions.

Wanchain’s mission is to build a distributed financial infrastructure and decentralized financial comprehensive service platform based on cross-chains. Based on the universal cross-chain mechanism, Wanchain will gradually connect public chains with public chains, public chains with alliance chains, and alliance chains with alliance chains, and eventually establish an open financial world with interconnection of all chains, integration of all industries, and one-stop DeFi services.

Q2: Can you tell us about the background and story of Wanchain team? By what chance did you decide to found Wanchain?

First, let’s talk about my personal development. I entered BYU in 1988 for a B.S. in Economics, and then went to Ohio State University for a M.S. in Computer Science. 2012, in the fourth year of Bitcoin’s existence, I was first introduced to Bitcoin and the name Satoshi Nakamoto at an offline developer gathering in Austin. After the meeting, I perused Satoshi Nakamoto’s famous white paper, “Bitcoin: A Peer-to-Peer Electronic Cash System”. From then on, I was fascinated by the distributed and decentralized blockchain technology and decided to join the blockchain industry.

In 2014, I founded Factom (notary public) with a few friends in Austin, including David Johnston, and became the CTO and head of marketing for China.

In 2016, I returned to China and founded Netrec Technology to provide enterprise-level blockchain solutions for government and enterprise customers. In the process of doing coalition chain for government, I saw the great prospect of coalition chain, but at the same time, I also wondered how to connect so many different coalition chains with different technologies to bring out more value in the end. Looking around the world, there are so many blockchain networks, how can they be connected to each other, so that assets, information and values can flow and trade freely between chains without barriers? Based on these ideas, we incubated the Wanchain project, focusing on the development of cross-chain mechanism to achieve the ambitious goal of interconnecting all chains by building a distributed financial infrastructure with cross-chain capability.

The Wanchain team is headquartered in Beijing, China and Austin, USA, with team members located in key countries in Asia, Europe, North America and Africa. Li Ni is our Vice President of Global Business, Weijia Zhang is our Vice President of R&D and the General Representative of Enterprise Ethernet Alliance EEA China, Temujin Louie is in charge of our overseas marketing, and Bryan Ye is in charge of our Asia Pacific marketing. Bryan Ye is in charge of our Asia Pacific marketing efforts.

Q3: Wanchain has been committed to Wanchain interconnection since its inception in 2017. What are the important stages of cross-chain exploration Wanchain has gone through since its development? How has the technology progressed so far?

In a nutshell, Wanchain cross-chain technology has undergone great changes from one-way cross-chain to multi-chain cross, from node trust to node de-trust, from semi-centralized to fully decentralized, and from deposit pool exclusive to deposit pool shared.

The Wanchain team released a white paper in 2017, which completed the depiction of the cross-chain mechanism from the theoretical level. 2018, Wanchain mainnet was launched, and based on the mechanism of trusting cross-chain nodes, we integrated the first public chain, Ether, across chains, and realized that ETH and ERC20 assets can be crossed between Wanchain and Ether and Ethernet. In 2019, we also launched the T-Bridge cross-chain framework for cross-chain integration with federated chains.

Before 2019, our cross-chain bridge is one-way, that is, assets can only cross from third-party public chains to Wanchain and back, but cannot cross WAN and WRC20 from Wanchain to other chains; at the same time, cross-chain nodes require credit to participate. Therefore, in 2020, we made a major upgrade to the cross-chain mechanism, and we completely opened the participation rights of cross-chain nodes to the community, which means anyone can create and operate cross-chain nodes. At the same time, the cross-chain bridge was upgraded from a one-way cross-chain to a two-way cross-chain, which means that WAN, WRC20 and ETH, ERC20 can cross-chain back and forth between Wanchain and Ethereum.

However, the cross-chain deposit pool for the cross-chain mechanism launched in 2020 will still be enjoyed by each cross-chain bridge separately and will not be shared with each other. So, in early 2021, we upgraded the cross-chain mechanism to a “pledge-sharing multi-chain crossover” mechanism, thus truly realizing: 1. deposit pools shared by multiple bridges; 2. cross-chain nodes fully open; 3. assets crossed by multiple chains.

The following is the development history of Wanchain, which reflects the progress of Wanchain over the years.

Breaking down DeFi silos and focusing on Wanchain, the financial hub that empowers the interconnection of all chains

How do users cross-chain? Currently users can cross-chain their assets via the Wanchain Desktop Wallet or the web-based cross-chain tool wanBridge Web.

Wanchain desktop wallet download link: https://www.wanchain.org/zh/getstarted/
WanBridge Web link: https://bridge.wanchain.org/
Q4: Can you tell us about Wanchain’s “pledge sharing multi-chain crossover” mechanism? How does it work and what are the highlights?

On February 26th, 2021, Wanchain team successfully released the new “Pledge Sharing Multi-Chain Crossover” mechanism. Compared with the previous version of the cross-chain mechanism, the two most prominent highlights of the new “Multi-chain Crossover” mechanism are

Pledges are shared across multiple chains, i.e. all pledges of cross-chain bridges share the same deposit pool.
BTC can be directly spanned, i.e. BTC can be directly spanned to Ethernet without relaying through Wanchain chain.
In the multi-chain crossover mechanism, all cross-chain bridges are operated by the same group of cross-chain nodes and share the same deposit pool. This design reduces the complexity of cross-chain operation, improves the convenience of cross-chain, and allows cross-chain assets to flow freely on each chain; at the same time, it greatly increases the maximum number of cross-chains in a single bridge while ensuring the safety of cross-chain funds.

The right side of the figure below reflects the upgraded Wanchain’s new “multi-chain crossover” mechanism.

Breaking down DeFi silos and focusing on Wanchain, the financial hub that empowers the interconnection of all chains

In the “multi-chain crossover” mechanism, cross-chain nodes pledge their pledges (the current mechanism supports pledges of WAN, multi-currency pledges will be considered in the future) to cross-chain bridges, and these pledges are counted as part of the bridge’s total pool of funds. The total amount of pledges for each cross-chain bridge is determined by the price of all assets in the cross-chain node group in which the bridge is located and the corresponding pledged volume. Since pledges are shared across the chain, the cross-chain amount of each bridge is also shared across the chain.
In the latest “multi-chain spanning” mechanism, we have successfully implemented the “directly connected bridge” model of cross-chain mechanism. A direct bridge is a direct cross-chain transfer of assets between two public chains without going through the Wanchain, which plays the role of a route.

Wanchain cross-chain nodes are elected once a month, and six rounds of elections have been successfully held. Based on the WAN pledges of the participating nodes, the top 25 nodes are selected to form the cross-chain node group and take up the cross-chain responsibilities for the next round. Both the cross-chain node operators and the principals entrusted to the cross-chain nodes will receive rewards from them.

For those who are interested in creating cross-chain nodes, please refer to this article “Cross-chain Node Storeman Creation” https://www.yuque.com/wanchain/wandoc/gmysdo

Q5:What chains are currently supported by the Wanchain cross-chain ecosystem? How will Wanchain expand its cross-chain landscape in the future?

Currently, Wanchain has integrated five public chains, namely Bitcoin, Ether, EOS, XRP Ledger and BSC.

On the other hand, based on the “multi-chain crossover” mechanism, we will continue to integrate more mainstream public chains, including Polkadot, Tron, Cosmos, and other public chains that do not support smart contracts, such as Litcoin, Bitcoin Cash, Stellar, etc. The Wanchain community partners have also recently developed a new version of the Wanchain community.

In addition, Wanchain community partners will soon launch an InstantCross cross-chain product that will further improve cross-chain speed and experience, while further reducing cross-chain costs. At that time, InstantCross will also go live with popular coins, such as Doge, Fil, etc.

Integrating assets across chains is an important part of our cross-chain layout, but it’s not the whole story. More importantly, when these assets are integrated across chains, how to make these cross-chain assets play a network effect and scale effect in the whole cross-chain ecology. Therefore, we have also invested a lot of energy and resources in ecological construction to enable cross-chain assets to empower DeFi. In the future, we will further improve our cross-chain development tools and introduce comprehensive incentives to attract more users to build their own cross-chain applications on Wanchain. DeFi applications on Wanchain.

Below are links to popular DeFi apps on the community-driven Wanchain ecosystem

WanSwap: wanswap.finance
WanLend: wanlend.finance
ZooKeeper: zookeeper.finance
Q6: Wanchain recently launched the X-Rollups two-tier solution, how does it solve the pain point problem of Ethernet?

We released a white paper on X-Rollups Ethernet Layer 2 solution in April this year, aiming to solve the pain points of low transaction throughput, expensive transaction fees and poor user experience on Ethernet.

Breaking down DeFi silos and focusing on Wanchain, the financial hub that empowers the interconnection of all chains

As shown above, in the white paper, the X-Rollups solution is based on Wanchain as Layer2 of Ether, because Wanchain as a public chain has the advantages of high transaction throughput and low transaction fees.

In the X-Rollups Layer 2 solution, Dapps on Ethernet (i.e. Layer1) can deploy a set of corresponding applications on Wanchain (i.e. Layer2) according to their needs. At the same time, assets and tokens on Layer1 can be seamlessly migrated to Layer2 for better user experience and lower Gas fees.

The Layer Connector in X-Rollups is located between Layer1 and Layer2, and it is the link between Layer1 and Layer2, through which the secure transfer of assets between Layer1 and Layer2 and the effective authentication of information between Layer1 and Layer2 are completed. The Layer Connector completes the secure transfer of assets between Layer1 and Layer2 and the effective authentication of information between Layer 1 and Layer 2.

In the core algorithm level, we use Enhanced Compression Algorithm (ECA) to complete the compression of the injected Layer1 data. Consistent data compression is a key factor in determining the scalability of the Rollups solution.

For a detailed description of X-Rollups, please refer to the white paper https://www.yuque.com/wanchain/wandoc/hn5q55

Q7: What are the differences and advantages of X-Rollups compared with other L2 solutions Optimistic Rollups and ZK Rollups?

Compared with Optimistic Rollups and ZK Rollups, the mainstream L2 solutions on Ethernet, X-Rollups shows corresponding advantages in data availability, transaction legality, compatibility, scalability and latency.

Data availability: The current popular Layer 2 solutions compress Layer 2 transactions and store them in Layer 1 to achieve data availability. In X-Rollups, the Voucher group periodically injects compressed Layer2 block headers into Layer1, which saves cost but also achieves data availability.

Transaction Legitimacy: In X-Rollups, the legitimacy of Layer2 transactions is guaranteed by 2-Stage Proof, which is accomplished by the presence of the block header Merkel root in Layer1. Due to most assumptions of honesty, the Voucher group is able to maintain a legitimate blockhead Merkel root in Layer1 at all times. Therefore, no illegal transaction can pass Layer1 validation.

Compatibility: X-Rollups are extremely compatible because Wanchain is fully compatible with the Ethernet EVM, so all eco-applications on Ethernet can come to the Wanchain, even without code changes.

Scalability: X-Rollups uses ECA as the data compression algorithm, picking block headers as the compression object instead of transactions, thus achieving higher compression ratio and higher scalability. X-Rollups is theoretically capable of reaching over 10,000 TPS.

Latency: In X-Rollups, the latency comes from the time period when the Voucher group submits the block header, which is less than 5 subgroups. Therefore, the latency of X-Rollups is only about 5 minutes.

For a more detailed comparison, see the whitepaper https://www.yuque.com/wanchain/wandoc/hn5q55

Q8: What do you see as the bottleneck in the DeFi market today and what kind of breakthrough can Wanchain bring?

There is a major bottleneck in the DeFi market, which is the value silo formed between different blockchains, such as the public chain represented by Ether, and the huge amount of non-Ethernet assets are shut out from participating in the DeFi feast on Ether.

Wanchain’s “pledge-sharing multi-chain crossover” mechanism provides a secure and decentralized cross-chain path for assets on these heterogeneous chains to be integrated on another chain.

As a notable example, we have recently cross-chain integrated XRP assets from Ripple, which allows users with native XRP to cross-chain their XRP to participate in a variety of DeFi applications, such as WanSwap, a liquidity mining project for the Wanchain community. In other words, XRP users can invest XRP in various financial services such as pledging, mining, lending, and providing liquidity, instead of simply storing XRP in wallets or exchanges. As a result, in less than a month after the cross-chain integration of XRP on the Wanchain mainnet, the locked-in volume of the WAN/XRP liquidity pool on our eco-application WanSwap is already approaching $10 million.

This fully illustrates the huge market potential of “Cross-chain + DeFi”. We firmly believe that when Wanchain connects more and more chains and assets, quantitative change will bring qualitative change and cross-chain will profoundly change the landscape of DeFi market.

Q9: From the perspective of community building for developers, will Wanchain carry out related activities in the future, such as Grant program and Hackathon activities?

Wanchain developer community WanDevs was established in April 2019. Since its establishment, WanDevs has attracted a large number of excellent developers from home and abroad to contribute to the ecological construction of Wanchain, and a number of remarkable Wanchain eco-applications have emerged, such as WanSwap, WanLend, Wandora Box, ZooKo. Wandora Box, ZooKeeper, FinNexus Options and so on.

Here is the developer community website: wandevs.org

WanSwap and ZooKeeper, two community-driven liquidity mining Dapps, have attracted $70 million in assets and are a bright spot on the Wanchain ecosystem.

For the developer community, the Wanchain Foundation has launched a series of developer rewards, giving developers WAN rewards based on their contributions to Wanchain’s Dapp, cross-chain mechanism, documentation, education and training, and other different directions.

In the future, our focus is still to guide and encourage developers to develop cross-chain capable Dapp on Wanchain, so as to further enrich and improve the cross-chain ecology of Wanchain, and we will also consider the opportunity to jointly conduct online or offline hackathon with professional teams.

Q10: Can you share with us the next step of Wanchain?

In terms of cross-chain mechanism, we will make further improvements in security, user experience and cross-chain performance, including but not limited to how to share PoS pledge with cross-chain node pledge, how to further reduce the pledge rate of cross-chain mechanism under the premise of ensuring security, how to realize multi-asset pledge, etc.

At the level of cross-chain integration of public chains, we will continue to increase the number of cross-chain integration of more mainstream public chains, including Polkadot, Tron, Cosmos, Litcoin, Bitcoin Cash, Stellar and so on. There are both public chains that support smart contracts and those that do not.

At the level of cross-chain ecological applications, we actively encourage and guide the community to develop and launch more high-quality “cross-chain + DeFi” applications, and enrich the categories of ecological applications, such as adding cross-chain machine gun pools, cross-chain NFT trading platforms, cross-chain second layer solutions, etc.

In short, Wanchain hopes that by building a distributed cross-chain infrastructure and financial integrated service platform, it can provide global users with one-stop DeFi services with multi-scene interconnection and full-industry integration in the future.

Q11: What does cross-chain aggregation mean specifically?

For cross-chain aggregation transactions, Wanchain currently adopts a two-step approach, i.e. cross-chain first and then transaction. For cross-chain transactions, users need to first cross assets from a third-party chain to Wanchain, or cross assets on Wanchain to a third-party chain, and then exchange the cross-chain assets through a DEX or other transaction Dapp like WanSwap. Instant Cross is also a convenient cross-chain product that allows assets to be exchanged and traded after crossing from one chain to another through Instant Cross. In the future, we will consolidate step-by-step cross-chain transactions into a one-click operation step, which is very easy to do on a technical level. We will launch such a cross-chain aggregated transaction product in due course.

Of course, projects like Polkadot and Cosmos are also doing cross-chain, but so far Wanchain is relatively more comprehensive. We have already implemented cross-chain in a completely decentralized way, and there are many cross-chain applications in Wanchain’s ecosystem, and the user experience is very good. Therefore, Wanchain is ahead of other cross-chain projects. We welcome you to join Wanchain community and experience the cross-chain DeFi application on Wanchain.

For more information, please follow.

Official website: https://www.wanchain.org/
Twitter: https://twitter.com/wanchain_org
Telegram: https://t.me/WanchainANN

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/breaking-down-defi-silos-and-focusing-on-wanchain-the-financial-hub-that-empowers-the-interconnection-of-all-chains/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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