For a particular set of crypto users, the need for centralized exchanges is one of the biggest stumbling blocks on the road to a completely decentralized future. Not everyone is going to prefer to use Bitcoin, and not everyone is going to prefer to use Ethereum. Indeed, not everyone is going to prefer any cryptocurrency.
The question, then, is how can the “internet of money” be interconnected without counterparty risk? In reality, there will probably always be some form of counterparty risk, some centralized exchanges that are necessary, clearinghouses that just do a better job.
One of the long-awaited technologies that’s finally coming to fruition in a few projects is cross-chain token transfers. Wanchain’s primary purpose is offering as much, currently between Bitcoin and Ethereum and in the future between several blockchains. Their wallet offers the ability to control tokens on both chains, opening up the world of Bitcoin liquidity to Ethereum holders.
And this morning they announced that they added another integration: the Dai token from MakerDAO, an interesting stablecoin which algorithmically keeps the value of its tokens at $1. It has the same goal as PAX, USDC, USDT, TUSD, and the other stablecoins out there, but achieves it in a slightly different way.
Previously, for Bitcoin users to get access to Dai, they would have to go on an exchange and buy it with Bitcoin, then hold it in an Ether wallet or the crypto exchange wallet. But as of today, they can do the same thing from within the Wanchain wallet.
MakerDAO CEO and co-founder Rune Christensen said:
“We are excited that Wanchain has launched their version 3.0 platform wTith Dai and MKR integration on their blockchain. As we seek to grow the use cases and stability of our tokens, Wanchain’s interoperability solution adds significant potential for Dai. For a stablecoin to see true mass adoption, cross-chain functionality is a must-have.”
In a previous interview with CCN.com, Wanchain CEO Jack Lu explained to us how cross-chain compatibility works. Essentially, tokens are locked on either chain and controlled through Secure Multi-Party Computing. Today’s addition of MakerDAO will use the same fundamentals to allow Dai holders to do the same, or Bitcoin holders to access MakerDAO smart contracts via Wanchain. Lu said:
“For us to achieve our goal of becoming one of the key cross-chain finance hubs of the Web 3.0 economy, Dai and MKR are critical components in laying the foundation. We look forward to seeing the many use cases this integration will generate.”
Lu has told us that there really is no upper limit on the number of blockchains that Wanchain can eventually interoperate with. In the same way that the Ethereum token itself is necessary for all sorts of transactions that have nothing directly to do with ETH on the Ethereum network, the Wan token could see an increase in demand as Wanchain develops itself into a hub where the blockchains of the world can meet.
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Last modified: May 20, 2020 2:02 PM UTC