#earningWhat is Wormhole? Information about W Token?
Wormhole - a cross-chain platform developed on Solana - has successfully raised over 300 million USD from numerous large investors. So, what is Wormhole? Is the W Token worth investing in? Let's find out!
Wormhole is a Cross-chain Messaging Protocol (W), enabling asset and information transfer between different blockchains.
Initially, Wormhole served as a pioneering Cross-chain Bridge in the Solana ecosystem, quickly becoming the largest bridge in the ecosystem by contributing significantly to liquidity and facilitating the easy flow of capital from Ethereum to Solana.
In February 2022, Wormhole was hacked, resulting in losses of up to 120K WETH (equivalent to over $300M at the time), which severely damaged the project’s reputation and TVL.
Thanks to the support of Jump Trading, Wormhole is currently recovering quickly and regaining its position in the Cross-chain sector.
What is Wormhole’s solution?
Moving tokens between blockchains has always been a significant barrier for users. Before Wormhole’s introduction, the workaround for this limitation was to transfer assets through centralized exchanges to relay them to the desired destination. However, this method was suboptimal as users were hesitant to entrust their assets to others, and passing through multiple intermediaries posed a risk of asset loss. Smart Contracts and dApps couldn’t interact with each other.
With the significant advancements in DeFi, Smart Contracts, and Layer 2 solutions, the limited interoperability of blockchains became a crucial issue that Wormhole was founded to address.
With these two major limitations in mind, Wormhole was established to optimize blockchain interoperability, providing the best possible user experience.
On April 3, 2024, Binance announced the listing of Wormhole on its platform.
Guardian: A network consisting of 19 validators responsible for verifying and approving messages.
Replayer: Responsible for relaying messages (transaction data requested by users) to the target blockchain.