Ukrainian Crypto Exchange WhiteBIT Launches WB Network, an EVM-Compatible Native Blockchain

In August, one of Europe’s largest centralized crypto exchanges, WhiteBIT, announced the release of a native blockchain network to help support the activities of the exchange.

The news comes nearly one year after the release of the exchange’s native token, WBT, which is used to reward customers of the exchange with discounts on trading fees, free withdrawals of Ethereum and ERC-20 tokens, free AML verifications and increased referral rewards.

Called the WB Network, the EVM-compatible blockchain uses a proof-of-authority consensus algorithm, which is a reputation-based consensus algorithm that allows blockchain networks to secure its transactions using the value of identities.

In practice, this means that transactions and blocks are validated by pre-approved accounts, known as validators. Validators are pre-selected by the network and entrusted with the responsibility of verifying transactions and adding them to the blockchain. These authorities are typically reputable entities known within the network, which ensures its security and efficiency.

This also means that transactions on the WB blockchain are fast, secure, cheap and energy-efficient. Because proof-of-authority doesn’t rely on resource-intensive mining infrastructure or complex mathematical puzzles, it requires minimal computing resources, which means higher transaction throughput, low transaction fees and minimal environmental impact.

Currently, there are over 22,000 accounts on the WhiteBIT network, with over 5.2 million transactions and an average block creation time of 2 seconds. The network is regularly audited for security, receiving “AAA” ratings from leading cybersecurity companies such as Hacken.

But the path to launching the WB Network required the successful completion of a number of developmental hurdles. For example, earlier this year the WhiteBIT team also conducted a network testnet in order to validate the network’s infrastructure, while also carrying out a successful “retrodrop.”

A retrodrop is a reward system for encouraging developers to participate in network testing. As part of the retrodrop, participants had to complete tasks on the testnet and the Zealy platform, as well as keep WBT in holding, which had the most impact on the size of the reward. This allowed the network to easily check for bugs and ensure that it was operating as intended. Not only did this strengthen the WB developer community, but it set up the framework for subsequent incentive programs, including a commission and reward distribution system and grant opportunities for ambitious projects.

Among the critical features of the WB Network is its WB Soul Ecosystem, a framework which allows users to recreate their identity on-chain securely without providing personal data. This system enables the network to use “soulbound” tokens, which represent the unique achievements and social status of each unique WB Soul. Each soulbound token is fixed to a specific WB address, so it cannot be sold or transferred. This means that there’s a permanent record of a user's contributions to the network, which is especially important in a proof-of-authority network.

Originally founded in Ukraine, WhiteBIT is one of Europe’s most robust trading platforms, offering over 350 trading pairs, 270 digital assets and 10 state currencies. WhiteBIT has an average daily trading volume of nearly $500 million. The company is also an official partner of the Ukrainian national football team, as well as FC Barcelona.

By launching the WB Network, WhiteBIT is building an integrated system for customer loyalty, while developing new ways to reward its users. In the words of Volodymyr Nosov, founder and CEO of WhiteBIT: “The idea was to create a sustainable infrastructure for the activities of ambitious blockchain developers and crypto enthusiasts.” The WB network, he said, presents users with a “new level of using the exchange and new opportunities for interaction with decentralized technologies.”