Last week, news.Bitcoin.com reported on the Wormhole announcement of a tokenization and smart contract platform project for the Bitcoin Cash (BCH) network. The Wormhole protocol was initiated by the firm Bitmain Technologies, and the codebase is a fork from the Omni Layer protocol. Furthermore, the project has already issued a bunch of Wormhole Cash (WHC) tokens that are backed by burned bitcoins.
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Wormhole: The Tokenization and Smart Contract Protocol Launches for Bitcoin Cash
A group of Bitmain developers has launched a new protocol called Wormhole which aims to implement representative tokens and smart contracts without changing consensus rules. The development team says after a lot of research they created Wormhole from a fork of the Omni Layer project which can issue tokens using OP_Return transactions. So far the team has launched a website, published its white paper, and has begun to issue WHC tokens using the Proof-of-Burn process.
Wormhole Cash and Proof-of-Burn
According to the website and white paper the in order to create WHC, Wormhole users send 1 BCH to the address: bitcoincash:qqqqqqqqqqqqqqqqqqqqqqqqqqqqqu08dsyxz98whc. There’s been 1,626BCH ($1.2Mn) sent to the burn address so far, but if less than 1BCH is sent the platform will not generate WHC. The white paper further details that WHC also needs 1,000 confirmations to issue coins, and for every 1BCH deposited 100WHC is created. Users can also purchase WHC from the market, and the exchange Coinex will be the first trading platform to list the currency.
Wormhole website.
The project’s white paper which was kindly translated for news.Bitcoin.com by the cryptocurrency journalist, Cindy Daily, explains the team decided not to attempt two-way anchoring with BCH
