Introduction to THORChain (RUNE)
An introduction to THORChain (RUNE). We answer what is THORChain and discuss all things RUNE crypto.
THORCHain is a permissionless cross-chain liquidity platform that supports interoperable blockchain communication.
It is a non-custodial liquidity marketplace for blockchains that allows users to swap assets freely through multiple networks (cross-chain transfers).
The native cryptocurrency of the THORChain network is called RUNE.
The official website sums up what is THORChain the best:
“THORChain is a liquidity protocol designed to connect all blockchain assets in a marketplace of liquidity through cross-chain bridges and continuous liquidity pools secured by economically incentivised validators.”
This ThorChain (RUNE) guide will allow us to dive in a little deeper and answer all of your RUNE related questions.
Introduction to THORChain (RUNE)
We cover THORChain and its native RUNE crypto.
Let's kick this guide off with a couple of high-level introductions.
First of all, let’s introduce THORChain itself.
“THORCHain is a liquidity and interoperability system with an emphasis on facilitating secure cross-chain cryptocurrency transactions.”
What makes THORChain unique is that it does not peg or wrap assets as we see on Ethereum or Binance Smart Chain.
Instead, THORChain determines how to move assets in response to user actions.
This is achieved by accepting deposits into vaults, adding or removing liquidity as required and then processing the outbound transactions.
You can think of THORChain as a leaderless vault manager, whose job is to ensure every stage of the process is byzantine-fault-tolerant.
THORChain’s key objective is to facilitate cross-chain liquidity, while remaining resistant to centralisation by only securing native assets in its vaults.
Secondly, we come to RUNE - The native token of the THORCHain network.
The token has a maximum supply of 500,000,000 and was initially funded in July 2019 via an initial DEX offering (IDO) on the Binance DEX.
According to the official THORCHain roadmap, Chaosnet is currently live on THORSwap.
This allows users to swap BTC, ETH, ERC20, BNB, LTC, and more, natively.
Staking however, is currently capped as the functionality of the protocol is verified.
Once the THORChain mainnet goes live in Q2/3 2021, these staking caps will be removed.
Moving forward, node operators on THORChain must commit a minimum of 1 million RUNE to participate in the network’s rotating consensus process.
The RUNE token powers the entire THORChain ecosystem and provides the economic incentive required to secure the network.
The four key roles of the RUNE token are:
- Liquidity: By acting as a settlement asset.
- Security: Works as a sybil-resistant mechanism.
- Governance: Signals priority on the THORChain network.
- Incentives: Rewards and network fees are denominated in RUNE.
If you’re interested in more than just an introduction, check out our ThorChain (RUNE) guide for an in-depth look at the project.
Best of probabilities to you.
Direct from the desk of Dane Williams.
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