Wormhole is a cross-chain messaging protocol designed to enable asset and information transfers between different blockchains. It addresses interoperability and token transferability issues within the Web3 space, aiming to facilitate seamless crypto asset and data movement across multiple blockchain networks.
Wormhole functions as a cross-chain messaging protocol using a network of 19 validators, known as Guardians, who verify and sign messages emitted by smart contracts on various blockchains. These verified messages are relayed to the destination blockchain for processing and execution. The protocol operates on multiple blockchains, including Solana and Ethereum, and uses a Proof-of-Authority (PoA) consensus mechanism with specific algorithms like Verifiable Action Approvals (VAAs).
Wormhole has numerous potential use cases, including blockchain interoperability, decentralised finance (DeFi) applications, cross-chain messaging and asset transfers, governance and decision-making within its network, staking, and delegation for on-chain governance. Real-world applications include high-yield opportunities on platforms like Kamino DeFi and enhanced liquidity through Wormhole's Composable Intents product. The technology is particularly relevant for industries involved in DeFi, blockchain interoperability, and cryptocurrency trading.
Wormhole was launched by Jump Crypto in 2020 as a bridge for transferring tokens between blockchains, primarily focusing on Solana and Ethereum. Co-founded by Saeed Badreg, Anthony Ramirez, and Tony Jin, it has evolved significantly from a simple bridge to a multi-chain messaging protocol. Key milestones include its evolution into a general messaging protocol in 2023, raising $225 million in funding, and separating from Jump Crypto. Wormhole has expanded its services to additional chains like Terra and BNB Smart Chain and formed partnerships with companies such as Google Cloud and AMD to enhance its capabilities.