Full description of Thorchain
Thorchain is a
Decentralized (?) network that was conceptualized in 2018 by a team that participated in the
Binance exchange (?) dexathon. Soon afterward, it became a research project. The network, which is called the first decentralized liquidity network proof-of-concept, enables cross-chain connection of users and their interaction.
The history of the Thorchain project
After the stage of research, the team members figured out that they are able to make the concept live but they had to take a pause and wait for the launch of the main tech stack of the project Cosmos SDK. Following the emergence of the
DeFi (Decentralized Finance) (?) sector on Ethereum, the team was sure in its capability to bring DeFi to the cross-chain environment. When KZen Networks Ltd., a company providing information technology services, released GG18 TSS (Threshold Signature Scheme) in 2019 and Cosmos SDK acquired its maturity, TSS enabled a chain agnostic bridging solution that became an impetus for the further development of the project.
The launch of the testnet occurred at the end of 2018. The first bridge was launched in 2019, while the network started functioning fully at the beginning of 2020.
Thorchain platform
The assets supported by the network can be easily swapped via a peer-to-peer connection. It’s important to connect the
Wallet (?) for it. The process of swapping is easy. There is clear guidance inside the wallet telling users what to do. The
Token (?) swaps are conducted without delay at a small fee.
There is a possibility to earn Thorchain native utility token of the network, which is RUNE, by
Staking (?) it. Stakers can also get
Block (?) rewards. There is also a possibility to run nodes for the members of the community who want to earn rewards. Thorchain nodes are used to maintain and protect the network by the verification of the authenticity of transactions. Those who run the nodes monitor transactions on external chains, operate the protocol, and approve of the outgoing transactions.
Node (?) operators get two-thirds of the network fees. The refreshment of the nodes occurs every three days for the promotion of the network. It helps them to remain dynamic and inclusive. It’s also possible for the nodes to leave when users wish. It’s only needed to submit the request for that, which is processed within several hours.
It’s necessary to have high-performance hardware and software at your disposal if you want to run a validator node. Additionally, such a person should stake at least 1 million RUNE. Though it may seem that the requirement is too strict, the compensation for their work is worth it. The bond rewards as they are called make 67% of the system’s revenue. At this, the share of liquidity providers is 33%. The rules also presuppose the penalties of node operators for wrong behavior, for instance, when they try to defraud the network.
Thorchain products
The products of THORChain include BET Swap, the application enabling BNB BEP2 token holders to swap assets, deposit assets for liquidity, or to earn commissions from traders. This is also a way to derive a higher benefit from trade.
Flash Network is another product developed by the team. A layer-2 network helps to support instant asset swaps, exchanges between the numerous tokens and liquidity pools. It’s worth mentioning that it’s compatible with such efficient layer2 technologies as Lightning Network, Bolt, and Raiden.
RUNEVault is a staking interface enabling staking and earning rewards for it. The Bitfröst Protocol is a cross-chain protocol that delivers connectivity between blockchains thus solving one of the most topical problems of the blockchain, i.e. its interoperability. Using this protocol, the members of the community are able to trade easily across any blockchain.
RUNE token
The native token of the platform RUNE was launched in June 2019 on the Binance blockchain. The platform issued 500 million tokens. The token was listed on Binance and was distributed to the community members free of charge for promotion services.
RUNE is a utility token that plays an essential role in the development of the ThorChain ecosystem. RUNE is used for staking as was mentioned above. The system of the nodes management requires the staking mechanism. The native token is needed to pay for transactions within the ecosystem and other fees. Also, the liquidity added to the network should be supported by RUNE in Continuous Liquidity Pools. It’s necessary to have native
Cryptocurrency (?) to join Liquidity Hubs. It means that RUNE works as a settlement currency for the network as well. The swaps are non-custodial and no third party is involved in them. It’s possible to swap funds directly from the wallets supported by the network.
The number of exchanges offers this cryptocurrency paired with the most popular digital assets such as Bitcoin, Tether, Ethereum, and others. The asset can be purchased on such exchanges as FTX, BitMax, Binance, and Bilaxy. Being a BEP-2 compliant token, it is supported by the Binance wallet, hence the storage in this wallet is available. Additionally, users can resort to such solutions as Atomic Wallet, Ledger, Guarda, Trust Wallet, etc.
ThorChain team
The company behind the project is headquartered in Zug, Switzerland. The team doesn’t disclose the personalities of its members for the protection of the project, as they assert, saying that founders try to undermine the process of decentralization.
- Exchange symbol (?): RUNE
- Cryptocurrency type (?): Token (?)
Thorchain for developers
Thorchain social sites
Source: NOMICS
