Two days before releasing Wanchain 3.0, featuring cross-chain transaction capability between Bitcoin, Ethereum, and ERC20 tokens, making it the world’s most advanced blockchain interoperability platform, ChinaCryptoNews talked to Wanchain Founder & CEO Jack Lu to learn more about it, to discuss Wanchain’s plans for 2019 and more.
With this tumultuous year coming to an end, we sat down with Wanchain CEO & Founder Jack Lu to talk about their major achievements in 2018, their new released Wanchain 3.0 and other future plans of Wanchain.
Q: Let’s quickly look back at 2018. What have been your biggest achievements?
In January, we launched 1.0 – Our main net, an independent public chain that is‚ based on Ethereum with more privacy protection added. Two levels of privacy protection to be specific. First, regarding the native coin, WAN, you are able to transfer from the WAN address to the private address. Second, regarding the token; any token created on Wanchain can have privacy transactions, which was a big step for us as nobody had done this before in this industry, it was the first time it was possible within the account-based blockchain infrastructure.
In July we launched 2.0 – the cross chain capability with Ethereum. At that time, we also finished developing the three key factors, which we call 3 pillars. These are cross-chain capability, privacy and smart contracts. When you combine them, it can become really powerful. For example, if you move assets to Wanchain, you can build privacy contracts on there, enabling secure and private transactions within the Wanchain network. Hence, we completed all the roadmap milestones stated in the white paper by July.
Q: Other use cases for this cross-chain capability could include cross-chain crypto loans, bringing Bitcoin to any application currently limited to Ethereum, cross-chain security tokens, or a cross-chain stable coin. The opportunities cross-chain with Bitcoin will bring for Wanchain and the industry are quite exciting. Could you elaborate more on how exactly this use cases could look like? If possible, in a very simple way.
Ok, so, in the early days, we had something called atomic swap. Basically, it is a way to directly exchange Bitcoin with Ethereum for example, without any third party, through something called hash time log mechanism. Some people are still doing this if they don’t want to rely on centralized exchanges for example. But, this way is very difficult to execute and, process-wise, could be compared to the process of an OTC trade.
Now, the approach we chose is to build the bridge first. For the bridge, we are using SMPC (secure multi-party computation) and a threshold key sharing technology.
We want to build a decentralized‚ bridge that allows to put your bitcoin into an account and receive what we call ‘proxy token’ on Wanchain. For example, in exchange for Bitcoin (BTC) you receive Wanchain Bitcoin (WBTC). Imagine a casino where you get chips for your USD. Here you get WBTC for your BTC that then can be used inside the system to exchange with other tokens or to play games within the Wanchain ecosystem. After you are done, you can take your‚ chips to the decentralized bridge to redeem it and change it back into BTC or even ETH. In other words, we wanted to create a universal approach where people can deposit their coins or tokens into our decentralized network and receive a proxy token which can be used to operate within the decentralized network.
Q: Wanchain believes the current industry is relying on too many third parties in order to operate. The whole purpose of blockchain technology was to create a decentralized world – we agree – where value and data could flow freely without intermediaries, in a fully peer to peer manner. However, having a lack of real use cases, do you think that decentralization is something that could be responsible for that? Decentralization for many people might create a lot of uncertainty which holds them back. How about a middle way approach?
It depends on what kind of application you are talking about. In the case of Bitcoin, if I lose it, who do I talk to? To me, this depends on education. If people are educated enough about it, for example, that you have the full custody of your fund and how the system works, there should not be any uncertainty. On the contrary, we have a lot of certainty because of the features of blockchain. Therefore, I do not think that decentralization is causing the slow adoption of the blockchain technology. However, the technology itself is very young. Although there are many companies that are using it in some way already, it just takes time.
Q: Using the cross-chain capability and smart contract mechanism of Wanchain, you mentioned that Peer-to-Peer lending can be implemented into Wanchain. P2P lending in China is a hot topic at the moment. What is your opinion on it? Will your way of P2P lending be different from the traditional one? How?
Yes, Peer-to-Peer lending in China is a difficult topic at the moment and the situation does not look good. There have also been a lot of unregistered, unregulated P2P lending companies. I kind of see it as a pyramid scheme, the operation side lends more money with higher interest to pay back the old debts, but how is this supposed to work out in the long run? So, no wonder that the situation in China regarding P2P lending is facing difficulties. But, there are of course some survivors and it is not completely illegal. As long as you have all the required licenses and match the requirements, you can still your P2P lending business. For the crypto world, I believe it is at a very early stage. There are a lot of projects, inside and outside of China, that are experimenting with it. Not only within the crypto space but also crypto to fiat lending. I think the good part about it is that you do have collaterals. I see a lot of potential and believe it can be better than centralized P2P lending. I believe DApp developers will come in when the infrastructure is ready and build those applications. But, Wanchain is not directly building those applications at the moment.
Q: You recently announced the integration of Chainlink and that you provide Chainlink’s oracle network to developers on the Wanchain platform to begin building decentralized applications that can leverage real-world data from both the blockchain and traditional world. What kind of DApps are you looking forward to seeing?
Yes, because Chainlink has a decentralized way to provide real-world data and we need to have a basic data oracle that we can connect with the real world. We need authentic data which can be passed on the smart contracts and therefore the blockchain. This could be anything from an insurance company needing some data about the weather or specific companies needing the result of a football game. This kind of real-world data is required for a lot of smart contracts to execute. In the future, for the derivate market, someone will create a financial application and the stock data would be very important for this application. At the same time, Chainlink has the ability to integrate with the financial world by sending out payments, sending funds to a specific location, accounts, etc. which might be very useful and interesting for our DApp developers in the future. So, although we would like to see financial DApp’s, we are certainly not limited to it. In the end, it depends on the developing community.
Q: You announced that the Wanchain team has already started working on Enterprise solutions and said that it is very significant in the space that your public chain can be integrated with private chains and joining important consortia like Hyperledger. What do you aim to achieve?
Yes, we have partnered with Hyperledger Association, Ethereum Association, etc. to figure out the standards for interoperability in cross-chain solutions. One of the reasons we do it is, to me, real use cases are usually combined with enterprise blockchain solutions. On the other hand, I believe that we can all benefit from each other’s knowledge and skills. So, in the future, we will be able to build a common protocol that can connect everybody.
Q: Everybody is desperate for real use cases, what do you think will be the first useful‚real use cases? In what kind of sector? What part will Wanchain play in that space?
As we provide the infrastructure for cross chain interoperability, we are looking for real uses cases in any sector. Whether we talk about finance, supply chain or even non-fungible tokens in gaming. For example Crypto Kitties, there are assets within Crypto Kitties that we also call ‘play-assets‘. Now, these ‚play-assets‘ within the game have the exact same functions as assets in the real world. They have a value, are being exchanged and stored.
Q: Lastly, could you tell us more about the Wanchain 4.0 milestone Wanchain aims to achieve in 2019, goals and partnerships you are working towards at the moment?
For 2019, we will focus on five major aspects:
- PoS – Our own consensus algorithm. We have been looking for our own PoS solution for a while. The design is basically done and the team started coding. If everything goes as planned, we will have out test net launching in a few months. The aim is to finalize and release our own PoS solution early 2019. The benefits of our own solution are; First, we have a mathematically proven secure PoS. Second, our PoS systems allow the community to adjust the degree of centralization for the TPS (transactions per second) requirement. Therefore, the community can actually decide, or vote with their stakes, in a certain way, on how the centralization of the network can change.
- Storeman node staking
- More integration – We aim to integrate more tokens with Wanchain. More ERC-20 Tokens. This part will be very interactive with our community. We would like to know from them what kind of projects they want to see integrated and partnered with. We are open to anything, whether we are talking about stablecoins or whatever.
- Wanchain 4.0 (The integration with Private Chains and Multi-Coin Wallets) – “This step for us is already in the pocket. We know how to do it, we just have to find out which projects are the best to partner with. We could do that anytime as soon as there is a suitable partner available.”
- Mass adoption solutions – This is a very big step for us, we have been working on that for some time now and we are happy to announce the result in a few weeks from now.
Q: Where will Wanchain be in 2025?
„Haha, this is still about 6 years from now, right? Well, we believe the blockchain will develop as a wide area network (a ‘WAN’), same as the internet did. This will take a lot of time and steps. However, we will continue working on integration, interoperability and starting this ‚smaller‘ network which we then aim to grow bigger and bigger. At the same time, other networks will be established and keep growing somewhere else as well and we will step in to provide a standard, a common protocol to connect all those networks together, to become part of a big network. Where everything just works as smoothly as possible, all of the assets, fiat currencies and digital currencies will be connected. All these different financial applications will have been implemented, people will be able to invest, do banking, etc. all by using one phone. This is how we envision the future.“
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