REN Cryptocurrency – DeFi Unchained
Throughout history, humans have constantly developed solutions to simplify various life functions. No effort has been spared when it comes to making our lives more convenient and comfortable, from the invention of the wheel to 21st-century advances in technology.
Cryptocurrencies have grown in popularity, with many cryptocurrencies now available on exchanges. Crypto investors are currently faced with the greatest challenge of successfully managing investments in a market that is highly volatile. Software developers Taiyang Zhang and Loong Wang came up with a solution to this problem in 2017. Originally named Republic Protocol, Ren was designed to handle multiple cryptocurrencies without compromising on convenience. The Ren network allows users to safely store their crypto and trade it with the Ren token, REN.
The Ren platform is a peer-to-peer (P2P) software that facilitates the transfer of crypto assets across a variety of blockchains. The Ethereum blockchain allows users to lock digital assets like Bitcoin in smart contracts and receive the equivalent of those assets in Ether. Ren allows Bitcoin holders to access Ethereum’s suite of decentralized financial products, defi, without selling their bitcoin. Additionally, these Ethereum tokens are able to be used for Ethereum’s DeFi offerings
Blockchain technology is being applied to finance in Decentralized Finance to build an ecosystem on lending and borrowing platforms like Aave or Compound. Throughout this process, the user’s bitcoins remain locked in the Ren software. If users want to unlock their funds, they’ll need to use the REN cryptocurrency to pay nodes to maintain and operate the network.
In RenVM, computations are performed using a decentralized network without revealing the underlying information. A renBTC token minted is backed by an equivalent number of BTC tokens stored in RenVM – it acts as a trustless custodian for cryptocurrency. By using advanced technology, RenVM facilitates the exchange and protects traders’ privacy in the following. Shamir’s Secret Sharing is a cryptographic concept that breaks down secret data into pieces that are held by different parties. The RenVM network conceals private keys using this process, which also protects them from Darknodes. The next one is Security Multiparty Computation (sMPC), which is a method for developers to run their code without disclosing inputs and outputs. Through SMPC, competing parties can share private data privately so that they can cooperate and gain mutually beneficial insights. Essentially, it provides an answer to the growing problem of data collection and privacy. The Byzantine Fault Tolerance algorithm enables the Ren network to function even if some nodes fail. By preventing false transactions and system failures, it increases the overall reliability of the blockchain. Using RenVM’s Hyperdrive consensus mechanism, transactions are safely processed at the speed of 20 confirmations every five minutes. In addition to providing tremendous scalability for cross-chain interactions, it operates on the principles of a high-speed and low-latency gossip protocol.
What Is RenBridge?
With RenBridge, digital assets can be wrapped on multiple blockchains in just a few clicks. RenBridge, for instance, allows users to convert Bitcoins to Ethereum-based ERC-20s called renBTC.
What is the usecase for REN coin?
DeFi products can be borrowed and lent using REN coins. They can also be traded, managed, and lent. Darknodes can also be run with REN. The Darknode registry contract requires traders to deposit 100,000 REN before coins can be mined and redeemed. Also, Darknode operators are paid with REN coins. For users to access REN, they don’t need to own or buy any cryptocurrencies. In contrast, users pay fees using the cryptocurrency of the blockchain through which they conduct their economic activities. User X, for example, must pay the transaction fee in Bitcoin if he wishes to access the Ren platform through renBTC.
How Does RenVM Work?
It is Ren’s virtual machine (RenVM) that runs the application. The fee for creating or destroying a token is dispersed to Ren’s Darknodes. In this case, Darknodes are responsible for verifying that the user has deposited an asset. When an asset deposit is confirmed, the darknodes mint a token that represents ownership of the asset. Additionally, they provide storage space and computing power to the Ren network. To prevent Darknodes from stealing assets from the deposit address, RenVM arranges Darknodes into new shards once a day. Darknodes will be nearly unable to exploit the network and collude.