In the realm of K'un-Lun, Daniel Rand aka Iron Fist has finished a match of his fighting skill before his master Yu-Ti and his Dragon Kings. After the fight Daniel asks Yu-Ti to allow him to meet the Challenge of the One. Before allowing him to do so, Yu-Ti asks Danny to think about himself and his past, and so Daniel reflects on the events that brought him to where he is now:
His father, Wendell, was originally from K'un-Lun was taking young Danny, his mother Heather, and his father's business partner at Rand-Meachum, Harold Meachum to see the land of K'un-Lun which appears on Earth only every 10 years. Along the mountainous and frozen passage Meachum would betray Wendell. When Wendell slipped saving young Danny and when asking Meachum for help, Meachum knocks Wendell off the side of the cliff to his death, in the hopes that he can take full control of their company. He then left Heather and young Daniel behind to live or die in the snowy mountains.
With this recollection done, Yu-Ti agrees to begin the Challenge of One, in which Danny has to fight Shu-Hu. During the fight Daniel continues to reflect back on the events that brought him to K'un-Lun. How he and his mother were chased to the gates of the city by a pack of wolves and how his mother sacrificed her life to keep the wolves at bay, and how Danny was taken into the city. While Shu-Hu proves to be powerful and gains the upper-hand, Daniel's superior kung-fu quickly turns the tide. He summons the strength of his Iron Fist and uses it against Shu-Hu and defeats him, to his surprise, Shu-Hu turned out to be nothing more than a robot. With the challenge done, Yu-Ti allows Daniel to choose between immortality or death.