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What is Wormhole (W)?
Wormhole is a generic message passing protocol, and it is one of the most important cross-chain bridges in the cryptocurrency world. Its core goal is to allow secure and reliable transmission of assets, data, and information between different blockchain networks (such as Ethereum, Solana, BNB Chain, etc.).
Core functionality: Wormhole is not just about transferring tokens; it allows smart contracts to 'speak' and trigger actions across different blockchains.
W Token: is the native governance token of the Wormhole ecosystem. Holders can vote on key decisions such as protocol upgrades, fee structures, and new chain integrations.
In simple terms, Wormhole is a 'super information relay' that connects all blockchains.
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What is Wormhole (W) analogous to in the real world?
You can compare Wormhole (W) to:
The 'universal translator' and 'high-speed train' of the digital world
1. Universal translator: If different blockchains (like Ethereum, Solana) speak different languages, Wormhole is the professional 'universal translator'. It ensures that smart contracts in these different languages can understand each other's messages and execute commands securely.
2. High-speed train: It’s like a high-speed train system shuttling between different cities (blockchains), capable of quickly and securely transporting 'passengers' (assets and information) from one station to another.
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What is the value and main business of Wormhole?
The core value of Wormhole lies in its ability to solve the 'island effect' of blockchains, making it a key infrastructure for building multi-chain applications (Multi-chain DApps) and facilitating the free flow of assets.
Main business/use cases:
1. Cross-chain bridge: Allows users to securely transfer assets from one blockchain to another.
2. Cross-chain messaging: Enables smart contracts to call and interact with each other across different chains, which is fundamental to building multi-chain applications.
3. W Governance: The W token is used to vote on key decisions regarding the protocol's security parameters, fee adjustments, and support for new chains.
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What are the core technologies and core competencies?
Core technology: Guardian network and verifiable actions
1. Guardian network: The core security mechanism of Wormhole consists of a decentralized set of validators known as 'Guardians'. These guardians are top node operators who jointly witness and sign the validity of cross-chain messages.
2. Verifiable actions: When a cross-chain transaction occurs, the guardian network verifies the events on the source chain, generates a 'Verifiable Action Proof' (VAA), and then the smart contract on the target chain verifies this VAA and executes the corresponding actions.
Core competency: Extensive integration and high security
1. Wide compatibility: Wormhole supports one of the largest numbers of blockchain networks (including EVM chains, Solana, Cosmos, etc.), resulting in significant network effects.
2. High security: The decentralized verification mechanism of the guardian network provides strong security guarantees, giving it a high level of trust in the cross-chain bridge space.
3. Universality: It is not just an asset bridge but also a cross-chain messaging protocol that supports more complex multi-chain applications.
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What is Wormhole's source of profit?
For the Wormhole protocol: The protocol generates revenue through transaction service fees.
1. Cross-chain fees: Transaction fees paid by users when bridging assets or sending cross-chain messages through Wormhole. This fee is distributed to the guardian network and protocol reserves.
2. Service fees: Fees charged to projects that build multi-chain applications using its infrastructure.
For W token holders: The profit mainly comes from:
1. Investment returns from price appreciation: The price difference when buying and selling W tokens.
2. Governance power: The value of the W token is related to the control over this critical infrastructure.
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What factors affect the price of Wormhole?
1. Cross-chain transaction volume (most important): The total value and quantity of assets, data, and messages transmitted through Wormhole directly reflect its position in the multi-chain world.
2. New chain integrations: Wormhole successfully supports new, popular blockchain networks (such as new L2 or L1).
3. Guardian network security: Any security vulnerabilities or network interruption events would severely affect market confidence.
4. Macro cryptocurrency market: Influenced by the sentiment of Bitcoin and the overall interoperability infrastructure sector.
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Summary of similar cryptocurrencies and advantages
Similar cryptocurrencies/platforms
Wormhole belongs to the field of cross-chain interoperability and bridging protocols:
LayerZero (ZRO): Another universal cross-chain messaging protocol.
Polkadot (DOT) / Cosmos (ATOM): Multi-chain interoperability platforms (but with different models).
The advantages of Wormhole
| Advantages | Simple Explanation |
| General Message Passing | Not just an asset bridge, but also supports complex cross-chain communication between smart contracts. |
| Wide Compatibility | Supports one of the largest numbers of blockchain networks, connecting almost all mainstream ecosystems. |
| High Security | Verified by a top-tier guardian network, providing strong decentralized security guarantees. |
| High market recognition | Has a huge TVL and trading volume, recognized as one of the cross-chain standards in the industry. |
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