Wanchain is a Singaporean project trying to build a decentralized financial ecosystem based on a distributed ledger, which would give access to the whole range of financial services. It uses a cross-chain protocol in order to connect the financial blockchains existent within the financial industry – a distributed super financial market based on Blockchain.
Essentially, Wanchain would offer accessibility to a greater level of financial services for every person – it would cover financial products such as lending, exchanging, credits, payments and so on. It offers these services within a Blockchain platform that would be decentralised, automated and at low cost, which is something that banks don’t offer at the moment as everything is centralised. Additionally, there are 2.5 billion people in the world who don’t have access to a bank for one reason or another – can’t open a saving account or can’t obtain a credit card.
Another issue tackled by Wanchain is that of cross-border payments and money transfers, which at the moment bear very high transaction expenses. This issue would be solved through the automated, low-cost Blockchain platform of Wanchain. Loans is also something that small and medium-sized investors are struggling with, as banks are currently not interested in offering these due to low returns, despite having good credit and outstanding performance.
Using the platform proposed by Wanchain, any individual or institution will be able to set up their own business window where they can offer a wide range of financial services, such as loan origination, asset exchanges or credit payments. Four different applications include:
- exchange of cryptocurrencies through private smart contracts
- loans of cryptocurrencies, with safety and transparency throughout the process
- investment through cryptocurrencies via smart contracts with an automated approval process
- crowd-funding through cryptocurrencies using smart contracts, where ICO tokens can be converted to real cryptocurrencies
How does the platform work?
Wanchain offers a distributed cross-chain mechanism, which would allow transactions between different types of public, consortium and private chains:
- transactions between different mainstream public chains (such as Bitcoin and Ethereum)
- transactions between different consortium chains
- transactions between different public and consortium chains
Wanchain relies on a universal cross-chain protocol that connects the platform and the Wanchain wallet. This would be a multi-currency wallet which gives developers the opportunity to develop it according to their application requirements using smart contracts and atomic swaps.
Users’ privacy will be protected based on smart contract assets, using ring signatures and one-time addresses. Wanchain will be the first project to achieve privacy protection for smart contract token transactions, which makes it highly valuable for financial transactions where privacy is essential.
Developers would be able to use the protocols in order to develop more complicated applications, such as multi-currency wallets. Additionally, the platform could also be used for funding ICOs.
The team consists of 23 members and 11 advisors, the majority of which are high-profile people with vast experience in the cryptocurrency field. The team can be found here.
Wanchain was founded by Jack Lu, who joined the cryptocurrency market in 2012 and is the co-founder of Factom, a globally famous blockchain project. When Factom was listed on exchange platforms, it had a market cap of $1 million USD and after two years, it is currently sitting at $393 million USD, equivalent to a 393x return. Additionally, he also founded Wanglu Tech in China and is committed to building practical commercial Blockchain applications.
The rest of the team is highly qualified as well, with several PhD experts and people with technical experience in the field of cryptography and blockchain.
ICO and supply
The ICO raised $30 million USD in Wanchain ERC-20 tokens and covered 107.1 million tokens. The total circulating supply of Wanchain coins is 210 million tokens. At ICO stage, the price of one token was roughly $0.35 USD.
This would place the market cap for Wanchain at around $80 million USD, and given that this project could compete with Ripple, which has a market cap of $43 billion USD, there are huge potential gains to be made. If Wanchain would reach the same market cap as Ripple, we would see a 400-500x return. However, it is important to mention that Ripple is serving the banking system whereas Wanchain will be serving the financial system.
In November 2017, version 1.0 of the Wanchain platform was released and version 2.0 is due to be released in June 2018, when integration with Ethereum will be added and a multi-coin wallet will be revealed. So far, the team has been reaching all the set milestones.
The Wanchain coins are expected to be released on exchange platform mid January. It is not certain which platform will be chosen but there are rumours it could be Binance.
Wanchain is a multi-functional platform that is trying to tackle the current issues that exist within the financial system, such as limited access, greater use of financial services for every citizen and a reliable, confidential environment within which financial transactions can be completed securely. Given the goals that this project is trying to achieve along with the high-profile members in the team, I believe Wanchain has huge long-term potential provided they will reach the roadmap milestones.