Wormhole is one of the leading solutions for transferring assets across different blockchains in the cryptocurrency industry. Recently, this project announced that it has completed the latest round of capital raising with the amount raised up to 225 million USD. So, what makes this project distinct from others? Let’s find out with Betomon through this article.
Wormhole: What is it?
Wormhole is a protocol that provides a solution for transferring tokens and NFTs between various blockchains.
The Wormhole Protocol was developed to address the two main difficulties that blockchain is facing at this time:
- Difficult to move tokens between different blockchains
- Difficult to create interoperability between blockchains since decentralized applications (dApps) and smart contracts on different blockchains cannot communicate with each other.
How does Wormhole operate?
Token transfers between blockchains on Wormhole are secured by validators, a group of handpicked validation nodes that monitor on-chain activity, including many of the largest staking service providers in the world as Everstake, Certus One,…
Validators will check the submitted transactions for authenticity before locking the native token of the platform in a smart contract on the source chain. The equivalent number of tokens is minted as wrapped tokens on the destination chain.
The operational state of a Wormhole
Since its launch, more than 750 million transactions totaling up to 35 billion USD have been processed by protocols utilizing Wormhole‘s solution. In addition, over 200 dApps have been developed across many blockchains based on the innovation of Wormhole.
Particularly, among the more than 30 blockchain networks supported by Wormhole, more than 81.3% of the total transactions are transactions on Solana accounts.
Outstanding feature of Wormhole
Support multiple blockchains
Wormhole enables users to access a wide range of DeFi protocols without requiring the use of centralized solutions by supporting the majority of renowned blockchain networks that are currently available on the market.
Allow transfer NFT between multiple blockchain
Additionally, the Wormhole NFT portal allows users to send their NFTs across many blockchains.
Support building dApps on different chains
Besides token bridges, Wormhole offers the infrastructure for dApps wanting to provide bridge solutions. As a result, developers can approach applications from a protocol-first design perspective owing to Wormhole’s architecture.
Developers may use Wormhole to create decentralized exchanges supporting the Oracle project, Multichain, Multichain DAO,…
Some Services of Wormhole
Portal
Portal is a bridging solution developed by Wormhole supporting most of the current popular blockchains such as Ethereum, BNB Chain, Solana, Avalanche,…
According to DefiLlama’s research, Portal Token Bridge currently ranks as the 7th largest platform for 24-hour trading volume with over 18.3 million USD.
Carrier
Carrier is another product of Wormhole, besides Portal, helping users move tokens and NFTs to other blockchains. At present, Carrier supports 12 chains, including Solana, Ethereum, BNB Chain, Polygon,… In the future, Carrier plans to provide more features such as swap and 2FA.
Some prominent functions:
- A comprehensive wallet dashboard provides a comprehensive overview of all stored assets, including tokens and NFTs, and gathers users’ on-chain activities in a single place.Users may browse, search, and export their entire transaction history, which gives much-needed transparency.
- User-friendly transaction execution and feedback mechanisms to guarantee proper data entry are provided by Carrier’s fully functional interface, which also predicts transaction completion times automatically.
- Users can execute numerous bridge transactions simultaneously due to the simultaneous transaction capability.
Native Token Transfers (NTT)
Native Token Transfers (NTT) presents an open, adaptable framework for transferring native tokens across different blockchains while retaining their fundamental characteristics.
NTT was developed to reduce liquidity fragmentation and unlock the benefits of Multichain functionality.
Projects using NTT technology tokens are able to:
- Fully customizable
- Metadata control
- Maintains ownership/upgradability
As a result, NTT may be integrated with any type of token governance system or standard.
Overall, the Layerzero Omnichain Fungible Token (OFT) standard and the Wormhole NTT standard are almost identical.
Cross-chain solution production tools for dApp developers
Wormhole offers the infrastructure needed for developers to create their own cross-chain bridges in addition to the previously mentioned products.
Wormhole has been attacked
The Wormhole cross-chain bridge was hacked on February 3, 2022. Consequently, up to 120k WETH, roughly 325 million USD were lost. After discovering the Wormhole vulnerability, attackers tricked validators into releasing 120,000 WETH onto the Solana network, which they then distributed via a variety of sources.
After the incident occurred, in order to keep Wormhole operating and fully reimburse users for losses, Jump Trading spent more than 120 thousand ETH.
On February 25, 2023, Jump Trading and the Oasis project development team took advantage of a security flaw in the project to recover 140 million USD from hackers. However, since it may create a dangerous precedent that affects the immutability of the blockchain, this occurrence has generated a lot of criticism in the cryptocurrency industry.
Wormhole ecosystem
The Wormhole Ecosystem contains various projects across many fields, Some of these are:
- Bridge: allbridge, Automata, Biconomy, Portal
- DEX: Uniswap, Hashflow, Raydium, TraderJoe, Wombat
- NFT: Degods, Audius
- Gaming: Mobland, sweatcoin
- Oracle: Pyth Network
- Staking: Lido
- Stablecoin: Frax
Wormhole also spent 50 million USD for ecosystem funds.
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