Bitmain Developers Propose Wormhole Protocol
Bitmain Developers have proposed Wormhole Smart Contracts Protocol for Bitcoin Cash. Bitmain developers have debuted their BCH tokenization proposal – Wormhole.
Bitcoin Cash (BCH) has been dedicated to bringing a reliable electronic cash platform to the world and fulfilling the original vision of the creator Mr. Satoshi as a “peer-to-peer electronic cash.” It enjoys global seamless circulation, permissionless innovation and other features.
The Wormhole protocol is a superset of the Bitcoin Cash network consensus. It is based on the Bitcoin Cash blockchain. Wormhole Cash adds new features like token issuance, transferring and burning into the BCH blockchain without changing the current BCH consensus rules.
The announcement was made via the Twitter handle of Bitcoin which reads:
— Bitcoin (@Bitcoin) July 17, 2018
Some Important Terms
1. Wormhole Cash: The base currency used in the Wormhole protocol, or “WHC” in short.
2. OP_RETURN: It is one of the opcodes in Bitcoin Cash. Any transaction outputs containing it is Unspendable, and nodes can safely move it out of the UTXO collection without affecting the total volume of the UTXO collection.
3. Wormhole protocol: It is based on the Omni Layer protocol that makes protocol specs for smart contracts on the Bitcoin Cash blockchain possible.
About the Proposal
Innovation requires a permissionless community as any proposal enabling token issuance, which requires certain consensus upgrades, will surely cause many problems like harsh conflicts, controversy among the developers and technical risks. The problems could further prevent the implementation of ‘radical initiatives’ which makes it harder to promote innovation.
Because of such complications, independent block of the Bitcoin Cash community expanded and ways are explored to implement smart contracts on Bitcoin Cash blockchain. After paying attention to the OmniLayer protocol, a scheme to realize the issuance of token through the OP_RETURN opcode has developed. It is the technical basis for daily distribution and circulation of USDT.
The OmniLayer protocol uses the MIT open-source license and runs on top of Bitcoin blockchain. The technical solution, named as Wormhole protocol, is developed by implementing the tech feature on Bitcoin Cash blockchain to achieve token issuance. The original token in the protocol is Wormhole Cash.
The metadata of a transaction is written in OP_RETURN. Issuance, transferring and burning of Wormhole protocol-based tokens can be completed only through Bitcoin Cash transaction, and by recognizing data stored in OP_RETURN. The Wormhole protocol multiplexes the transaction transfer system of Bitcoin Cash to read transactions, addresses, and OP_RETURN data on Bitcoin Cash blockchain.
Bitcoin Cash offers several advantages as tweeted by Bitcoin:
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