Wanchain Cross-chain smart contract and financial platform

Wanchain aims to create a new financial services industry centered around digital assets using cross-chain interoperability, privacy, and smart contract functionality

Background

Currently being developed by the Wanchain Foundation, a non-profit organization registered in Singapore, Wanchain is an open source project that aiming to create a distributed financial market based on blockchain technology. The team intends to achieve this goal by focusing on three pillars: cross-chain interoperability, privacy, and smart contracts, which allow anybody to design and use a suite of applications. Wanchain envisions the facilitation of a variety of financial services network s well as a variety of use cases (decentralized exchanges, lending, stablecoins, multi-currency payment and settlement, crowdsourcing etc.)  Jack Lu, former co-founder and CTO at Factom, founded the initiative in 2016.

The project focuses on the growth of digital assets, including tokenization of traditional assets like stocks and bonds, and how they will interact with existing blockchains like Bitcoin and Ethereum. Wanchain built out a T-Bridge (Trust-Bridge) Framework, a standardized, universal framework which allows for the exchange of assets and data between blockchains.

Users can choose private transactions by using one-time addresses, and future releases will provide ring-signatures similar to those found in Monero. This is intended to give users the option to interact discreetly and promote asset fungibility.

Wanchain has also developed a variety of dApps through Wanlabs and Wanchain core community members. There are currently eight dApps on Wanchain (Instant Cross, WanSwap, WanLend, ZooKeeper, Jack's Pot, WanFarm, WanDex and Dark Forest).

Technology

Wanchain is a fork of Ethereum and integrates similar smart contract capabilities. The platform uses proof-of-stake (PoS) for consensus but divides verification nodes into three groups; vouchers, storemen, and validators.

Nodes are required to stake Wancoin (WAN) in return for the ability to validate transactions on the network. They are compensated in the form of fees for this service. Any dishonest behavior causes their stake to be slashed. The platform aims to
facilitate cross-chain interoperability using a series of locked accounts. When sending a cross-chain transaction, assets (value) are not flowing across chains. Instead, they are sent to a locked account that keeps funds on the original chain, akin to a deposit.
Vouchers provide proof of transactions between the original account and the locked account.

Funds are then replicated on Wanchain, and a receipt is generated, showing how much a user can transact with. Locked accounts are created through a cryptographic method called secure multi-party computation (sMPC), which allows for coordination using a public-private address scheme. Storemen are responsible for operations related to locked accounts such as account generation and key management. Private keys are not
exposed to a single individual during this process, but instead, are divided amongst multiple validators requiring some, or all, to reconstruct the data. This aims to also maintain network integrity if some of the validators are corrupt or offline.

Validators are general verification nodes that record transactions whenever there is consensus. By dividing the nodes into three distinct groups, the team hopes to reduce the chance of collusion.

Wanchain uses one time accounts and plans to use ring signatures to protect anonymity and fungibility in the network. Privacy can be provided for simple transactions (sending tokens from one wallet to another) and more complex operations with smart contracts and cross-chain requirements.

In Wanchain, every account has a main account that contains sub-accounts or one-time accounts. When a sender initiates a private transaction, they create a unique account for the recipient based on their public key. The sender sends the money to this one-time account instead of the public address. The recipient can then use their private key to access all their onetime accounts.

Ring signatures are a type of digital signature in which a group of possible signers are merged to produce a group signature. The sent transaction is mixed with a series of past transactions that act as a decoy, to prevent anyone from identifying the actual sender. Ring signatures obfuscate the sender while one time accounts
obfuscate the receiver.