Supercharged Interoperable Assets
A short overview of the Wanchain cross-chain model and an explanation of wrapped tokens and what they mean for WRDEX
Introduction to Wanchain’s Cross-Chain Model
All major Blockchains exist in isolation — meaning these blockchains can not communicate with each other, not being able to exchange value or data. Wanchain is currently cross-chain with Ethereum, Bitcoin, EOS and a number of ERC-20 assets. This bridges communication between these different, otherwise isolated chains. Any Dapps built on a specific blockchain will be able to take advantage of this bridge using wrapped assets represented on the Wanchain blockchain, removing the need for centralized exchanges to transfer value.
What is a wrapped token?
A wrapped token is an asset represented on a different blockchain, in this case, Wanchain. This wrapped token’s price is pegged to that of the underlying asset, for example, WETH (Wrapped Ether) has the same price as Ether. 1 WETH = 1 ETH.
How do wrapped tokens work?
As an example, when transferring value from the Ethereum blockchain to Wanchain’s blockchain, the underlying asset is locked with Wanchains storeman nodes, and the wrapped token (WETH) is then issued. This WETH is a WRC-20 token that can be sent around or traded using the upcoming WRDEX. The native Ether can then be redeemed from the storeman node, destroying the WETH token.
Why are wrapped tokens important besides the cross-chain functionality?
Wrapped assets on Wanchain can be sent around much faster than the underlying assets since they are WRC-20 standard. The Wanchain blockchain can process roughly 1000 transactions per second, this is much much faster than Ethereum or Bitcoin. This makes fast and smooth trading on WRDEX possible. Any Dapp using wrapped assets will be able to take advantage of this transaction speed, increasing the potential use cases.
WRDEX and wrapped tokens
The Wanchain-RiveX Decentralized Exchange (WRDEX) makes use of these wrapped assets, allowing users to trade Bitcoin, Ethereum, EOS and many ERC-20 and WRC-20 tokens. More and more assets will be listed on WRDEX allowing for a wider variety of trading pairs once Wanchain has implemented more blockchains using their cross-chain solution. Since WRDEX is built on the Wanchain blockchain which has a transaction speed of 1000+, transactions are super fast.
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