It is not surprising anymore when blockchains and applications are popping up now and then. But it becomes quite interesting when a centralized cryptocurrency exchange launches its own. That's certainly something isn't it?
Recently, WhiteBIT, a leading centralized exchange in Europe has announced the release of its own blockchain called WB Network. But before going into further details about that, let's first take a brief look at what WhiteBIT is for those who have never heard of it.
Brief Introduction
WhiteBit is one of the largest centralized cryptocurrency exchange (CEX) in Europe which was founded in Ukraine in 2018. It is the official exchange partner of the FC Barcelona, Ukrainian national football team, Lifecell, FACEIT, and the National University Kyiv-Mohyla Academy.¹
The exchange has grown over the years and listed over 350 trading pairs, more than 270 digital assets and 10 different national fiat currencies including USD, EUR, GBP, PLN, UAH to name a few. It has over 4 million users and highest average daily trading volume of more than $2.5 billion.²
Its offered products/services include:
- Spot, Margin and Futures Trading.
- Quick Exchange which is a crypto converter that exchanges crypto for crypto, fiat currencies for crypto, and vice versa.
- Crypto Borrow where users can take a loan for their trading or withdrawal needs.
- WhiteBit Earn where users can earn passively up to 24.85% APR by lending their crypto assets to the exchange.
- WB Card, the WhiteBIT Debit Card which eligible users can avail and enjoy various benefits.³
Apart from catering to retail customers and traders, it also has a variety of services and tools available to institutional investors.
In addition, the exchange also boosts the following features:
- Lowest trading fee which does not exceed 0.1%.
- WhiteBIT has Voice Support on their Help Center, hence fast customer service support.
- User verification or KYC is quick via the Diia app.
Now that we have discovered the basics of WhiteBIT, it's time to delve into its newly-launched blockchain.
So What is WB Network?
WB Network is a blockchain built on GeTH (Go-Ethereum), developed by WhiteBIT. It is an "EVM-compatible network aiming to bridge the gap between CEX and Web 3."⁴
The network uses the Proof-of-Authority (PoA) algorithm, a reputation-based consensus where validators are pre-selected or pre-approved by the network and entrusted to verify transactions and add them to the blockchain.⁵
Accordingly, its creation is to "provide a robust and innovative blockchain infrastructure that enables secure and efficient transactions, while offering additional benefits to token holders and also promoting decentralized interactions within the WhiteBIT ecosystem."⁶
Vital Components
WB Network has various features or components that make up its own ecosystem. They include:
▶️ WhiteBIT Exchange
This is considered the powerhouse of the WB Network. It is its own official exchange that had been on operation since 2018.
It offers a variety of products and services as mentioned in the brief introduction above.
▶️ WhiteBIT Coin (WBT)
Circulating Supply: 144,117,087
Max Supply: 400 million
Network: ERC-20, TRC-20, WB Network
Burn Mechanism: Weekly burning of WBT has started and will continue until half of the supply is removed. 33% of WhiteBIT trading fees and 5% of other exchange fees are used to buy back WBT which are burnt every Monday.
This was previously called WhiteBIT Token which was the regular token for the exchange. With the launching of WB Network, it has transitioned into a coin. It will serve as the main asset of the blockchain and offers more benefits to its holders as follows:
- Reduced trading fee
- Participate in Launchpad
- Enjoy free withdrawals of Ethereum and ERC-20 based tokens on the WhiteBIT platform
- Free AML verification
- Increased referral rewards
- Participate in SoulDrop
The WhiteBIT Coin can be traded on Bitfinex, Huobi, WhiteBIT exchange, Gate.io and MECX.
[Source: Whitepaper]
▶️ WB Explorer
Obviously as a blockchain, WB Network has its own native Block Explorer for tracking transactions.
It is mentioned on their site that further features will be developed to enhance the application.
▶️ WB Soul Ecosystem
This is a "Web 3 tool that allows users to represent their identity in an anonymous environment through blockchain without revealing their data."⁷
This allows for the recreation of a user’s identity in the WB Network blockchain by making their own WB Soul. Each WB Soul has its own attributes and Soulbound Tokens.⁷
👉WB Soul (Attribute)
A unique identifier, or a digital ID that can only be created by KYC-verified users and they can also use it on other dApps on the WB Network.
Having this allows users to receive SoulBound Token (SBT). In addition, users with this identifier and holding WBT Coin can enjoy bonuses and rewards from the SoulDrop (Blockchain fees and Funds redistribution).
Upon creation of WB Soul, users can attach various wallets to it.
👉SBT Early Bird (SoulBound Token)
This is a commemorative token issued to users who participated in the WB Testnet. Each SBT is inseparable to the user's WB Soul and cannot be changed, transferred nor sold.
▶️ SoulDrop
This is a reward redistribution system in the WB Network where users who have WBT in Holding. Only those WB Souls who have WBT in Holding can participate in it.⁸
The rewards are calculated and credited every 30 days depending on the level and amount of WBT in Holding. They are only available to users who have not hidden their HoldAmount in the WB Soul settings.⁹
The rules for the distribution of the rewards is governed by the SoulDrop Contract.
▶️ Testnet
Accordingly, this is a safe space for experiments within a test network.¹⁰
I would assume that as more applications will be built on the blockchain, this will serve as the test space for them.
▶️ WhiteBIT Launchpad
Yet to be released. To participate, users must be holding WhiteBIT Coin (WBT).
The launchpad will "offer the exclusive chance for users to purchase tokens of promising crypto projects at a fixed price before they hit the market. The Launchpad mechanism empowers every member of the WhiteBIT community to participate in project selection."¹¹
Why WhiteBIT developed its own blockchain
Accordingly, their mission is "to support the mass adoption of blockchain by providing users with a convenient and transparent tool that facilitates everyday financial operations in the crypto world. We strive to go beyond that and have also endeavored to create a platform that can be utilized through official collaborations with government bodies and financial systems."¹²
Furthermore, they want to empower people to "seamlessly engage with cryptocurrencies while fostering trust and cooperation between traditional institutions and the blockchain ecosystem."¹³
And their platform will "serve as a bridge, offering a reliable solution for individuals and established organizations to participate in the evolving crypto landscape while adhering to regulatory requirements and promoting financial inclusion."¹⁴
Summary (TL;DR)
WhiteBIT, one of the biggest CEX in Europe and the exchange partner of FB Barcelona developed its own blockchain called WB Network and launched it recently.
The network includes a WB Soul Ecosystem, a Web 3 tool that allows KYC-verified users to create their own digital identity called WB Soul which they can use in the WB blockchain and on any decentralized applications in it. Users can also receive SBT Early Bird for their support of the project.
WBT is the main asset of the blockchain and holders of it enjoy certain perks like trading fee discounts, free withdrawals of Ethereum and other ERC-20 based tokens on the WhiteBIT exchange and other benefits.
WB Network has a rewards redistribution system called SoulDrop where users with WBT holdings and have not hidden their hold amount in their WB Soul settings can receive rewards every 30 days.
WB Network has other applications built in it - its own native block explorer, a testnet space and soon, a launchpad.
For infotainment only. Info Sources: WhiteBIT / Whitepaper / WB Network / Blog
Lead image created on Canva. Logo from WB Network. Screenshots linked to their own sources. 10082023/10:00ph