Cross-Chain Is the Future: THORChain

Cross-Chain Is the Future: THORChain.

The DeFi sector relies heavily on decentralized exchanges. However, great Ethereum and BSC exchanges are still unable to perform cross-chain token swaps. THORChain is a first-of-its-kind decentralized exchange (DEX) that allows to trade assets on different blockchains. In this post, you’ll learn about the THORChain project’s essential features, how to use it, and how to buy Thorchain RUNE with crypto.

What is THORChain?

THORChain is a permissionless cross-chain liquidity technology that supports interoperability between blockchains. It’s a non-custodial blockchain liquidity marketplace that allows users to freely swap assets across numerous networks. THORchain accomplishes this by constructing bi-directional bridges connecting two blockchains. As a result, as a user, you have permissionless, non-custodial access to any asset on the network.

Key Features of Thorchain

THORChain is not only a protocol but also a collection of technologies that users can take advantage of to solve a variety of problems in the DeFi sector. For example, the following are some key components of the THORChain project:

RUNE Coin

The RUNE coin is the THORChain network’s native coin. It can power nodes, with every node committing to one million RUNE bond to participate in the consensus process. The RUNE token exists on several blockchains, however, there’s also a mainnet version of it. THORChain cryptocurrency employs a Proof-of-Bond consensus mechanism, which is a modified version of Proof-of-Stake.

THORChain Ecosystem

The THORChain developers saw centralized exchanges’ low-liquidity transfer processes as faulty and wanted to establish a better alternative. Hence, THORChain appears to be a cross-chain solution, allowing to swap any asset effortlessly regardless of its underlying blockchain. More crucially, users retain complete control of their possessions during the transaction.

THORChain also solves several concerns related to Decentralized Finance (DeFi) because it provides liquidity for computerized market makers through continuous liquidity pools. This way, THORChain eliminates the requirement for external price feeds or oracles.

Ecosystem Roles

The THORChain project has a few roles in the overall ecosystem that are worth mentioning:

Security

As mentioned, THORChain is a Proof-of-Bond network, which means that it forms a link to be churned in. This bond underwrites the assets in the pools, not merely to identify a node (give them a voting seat). If a node tries to steal assets, their bond decreases by 1.5 times the value of the assets taken. Thus, the pools are restored.

Governance

While THORChain aims to be governance-free, several aspects of the protocol do rely on committed money to signify precedence. This is the case with the asset listing procedure, where a new asset might be offered as a pool every few days. The asset with the highest level of RUNE commitment is listed first in a queue of standby assets.

Incentives

A fixed network cost and a dynamic slip-based fee apply to all RUNE exchanges: these guard against various attack routes, including denial-of-service and sandwich assaults on a pool. However, THORChain doesn’t go to great lengths to keep track of every drop of gas consumed. Instead, nodes can pay for gas using any of the base assets, such as BNB.BNB, ETH.ETH, BTC.BTC, and so on. Following the charging of fees and the subsidization of gas, THORChain calculates the block reward, splits it using the Incentive Pendulum algorithm, and distributes it to Bonders and Liquidity suppliers.

THORChain Roadmap

THORChain has no CEO, founders, or directors, but the developers publish transparent weekly updates on the project’s progress to the community. They aim to make minimal government decisions to maintain the system as decentralized as possible and instead rely on staked capital to drive the market. As a result, new assets promptly appear on the exchange, rendering many governmental infrastructure decisions obsolete.

XDEFI Wallet

The best DeFi and NFT wallet for THORChain (RUNE) is the XDEFI Wallet. XDEFI Wallet is built for the multichain era — the world’s only wallet with native Terra (LUNA), THORChain token, Ethereum (ETH), and Bitcoin (BTC) integrations. In addition, XDEFI is a decentralized wallet plugin for web browsers that allows people to quickly access the decentralized future.

Read further to learn how to buy some some RUNE.

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