Wormhole (W) operates as a next-gen interoperability ecosystem. The protocol integrates unique features and services that enable the seamless transfer of data and assets across +30 top-performing blockchains. The added benefits offered to developers and users helped it become a popular option in the market. Here’s everything you need to know about Wormhole (W).
Since its launch, Wormhole has established a reputation as a reliable cross-chain ecosystem. The network currently powers more than 200 Dapps and has helped thousands of users securely share data across blockchains.
Source – Wormhole (W)
What Problems Does Wormhole (W) Attempt to Fix?
Wormhole directly attempts to rectify several issues. For one, the network’s design makes it the ideal choice for interoperability. The protocol includes the ability to wrap assets and send messages between networks securely. Currently, Wormhole enables the seamless integration of more than 30 high-performance blockchains. In the future, the team will expand to include more networks.
Lack of Developer Trust
One of Wormhole’s developers’ primary concerns was the lack of trust in the decentralized economy. The team improved user confidence by making the protocol open-source and trustless. Wormhole users now enjoy a decentralized and permissionless infrastructure.
Lack of Liquidity
Liquidity concerns remain high for new DEFi projects, especially those on smaller networks. The introduction of seamless asset transferences and wrapped assets helps alleviate this concern, enabling developers to bring in outside traders from other blockchains. This deepens liquidity and ensures that projects can access funding when needed.
Benefits of Wormhole (W)
Several benefits make Wormhole a strong contender in the DeFi market. For one, it’s one of the leading interoperability protocols within the Solana economy. Additionally, its combination of features enhances fluidity and accessibility, allowing developers to utilize the best assets and aspects of certain blockchains when needed.
Wrapped Assets
Wrapped assets are a popular concept in the DeFi sector. They work by locking an asset on a particular blockchain and then, issuing a connected asset on a new chain. This method of value transfer enables crypto traders to participate in DeFi features that may have been excluded from their precious assets.
Wrapped assets bring benefits like allowing smaller Defi ecosystems to enjoy deeper liquidity. They also enable HOLDers to access passive income streams without giving up ownership of their assets.
Easy Integration
One of the core benefits that Wormhole brings to the market is its easy negation. Developers can introduce the advanced cross-chain features offered by Wormhole with as little as 3 lines of coding. This strategy has made it much easier for new talent to join the ecosystem and allows developers to improve their offerings.
Developer Flexibility
At the core of Wormhole is its development flexibility. The protocol allows creators to build advanced exchanges, dapps, and other helpful solutions that can accept multiple cryptocurrencies. Additionally, Dapps can pay rewards and offer benefits from other blockchains. This flexibility empowers developers to create more value with less time using the SDK.
Scalability
Scalability is a major concern for all blockchain developers. In the past, scalability concerns have ground entire networks to a standstill. Wormhole provides bridges at scale that allow developers to leverage the high performance of the Solana blockchain, alongside the benefits provided by other capable blockchain networks.
Airdrops
Wormhole has an aggressive airdrops campaign that rewards its users. Airdrops directly deposit into your account without any additional actions required. They are a common way to reward users that has gained popularity over the last 5 years. Wormhole users enjoy frequent airdrops, adding to the platform’s incentivization strategy.
How Does Wormhole (W) Work?
Wormhole utilizes a variety of proprietary blockchain protocols to enable high-level interoperability within the cryptoscape. The network provides cross-chain communications, value exchange, and development options all in a single protocol. These features make it a valuable addition to any developer’s tool kit.
Wormhole Core Contract
Users can facilitate cross-chain transfer by locking an asset into a Wormhole contract. This protocol will lock the first asset and issue a corresponding asset on the Wormhole network. The new asset will share the same value as the locked asset but will have the added liquidity and interoperability of advanced DeFi tokens.
Guardian Network
The Guardian network is a critical component of the Wormhole ecosystem. The guardians operate as message validators. They also review and monitor the state of the multiple blockchains that wormhole users can leverage. Once approved by the guardians, the asset verification process goes to the VAAS.
VAAs (Verifiable Action Approvals)
Validated messages then go to Verified Action Approval (VAA). This protocol serves the vital role of packaging the data for cross-chain actions. The data is packaged in a format that ensures full security and interoperability with the new network.
Native Token Transfers (NTT)
Native Token Transfers are used to share assets across the Wormhole economy. This secure and permissionless system provides a transparent and reliable method of sharing data and value across chains. Additionally, it can scale to meet the needs of growing DeFi economies.
Wormhole Token – ‘W’
The W token is the main utility token for the Wormhole project. This versatile digital asset was launched on Solana first but is now active across Ethereum, Arbitrum, Optimism, and Base. This token plays a crucial role in enabling users to convert assets. It’s also a vital component of the platform’s governance system. Notably, there are 10B W tokens slated for issuance throughout the life of the project.
Wormhole (W) Governance
Anyone can stake W tokens to gain access to the network’s governance protocols. Here, users can put forth votes via the Tally Governance Portal. Proposals that receive the appropriate amount of voting get automatically instituted, enabling users to have a say in the platform’s future decisions.
Notably, Dapp develops can leverage the same style of community governance when integrating Wormhole into their options. The system enables users to issue NFTs and alollow voting to be casted by staking. Interestingly, the governance protocols require a two-thirds supermajority of Guardians to pass.
How to Buy Wormhole (W)
Currently, Wormhole (W) is available for purchase on the following exchanges.
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry and offers trading access to over 190 countries, including Australia, Canada, Europe, and the United States (excluding Maine, New York, and Washington state).
Binance – Accepts Australia, Singapore, the UK, and most of the world. Canadian & USA residents are prohibited. Use Discount Code: EE59L0QP for 10% cashback on all trading fees.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. Restrictions may apply, depending on location.
Wormhole (W) – Driving DeFi Innovation Forward
Wormhole offers developers a new level of interoperability that requires very little technical understanding to integrate. As such, the protocol is seen by many as one of the best ways to reduce onboarding friction for the DeFi community. These features, plus the added liquidity the network provides, make it a smart option to watch.
Learn about other cool blockchain projects now.
