REN Protocol: Decentralized Solution for Inter-Blockchain Liquidity

No one needs to be a genius to understand that DeFi is the next logical stage in cryptocurrencies history, as it completely changed the way the crypto industry looks at financial sovereignty. The REN protocol (formerly known as the Republic Protocol) aims to provide crypto investors with full access to liquidity across different blockchains for DApps. The goal is to bring BTC, BCH, and other popular crypto assets into Ethereum DApps. The idea is empowered by their exclusive RenVM, which is a trustless decentralized virtual machine. 

Gain full access to liquidity with the help of the REN protocol!

What Is The REN Protocol?

What Is The REN Protocol?

Basically, we have all these blockchains, that are in different isolated blockchain worlds, and they have no way to communicate with each other.

What RenVM allows users to do is unchain all that liquidity, and let these isolated environments interact with each other, interacting permissionless.

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The REN network does all the necessary work to bring this concept to reality, bringing the so-desired interoperability to the table, while doing it without any sort of trust. It means it is fully decentralized, with no central party control or participation of middlemen throughout the process.

It has this unique concept of DarkNodes in its’ ecosystem, which are nodes that match order fragments, also acting by collecting trading fees such as order matching and settling rewards.

How Does The REN System Work?

The video above does a fine job of explaining the intricacies of the REN protocol.

The power engine behind REN is the RenVM, which has four essential attributes. We can chart these attributes as following, each one with a specific function through the process:

  • Shamir’s Secret Sharing
  • Secure Multi-Party Computation (sMPC)
  • Byzantine Fault Tolerance (BFT) algorithm
  • Hyperdrive

The first topic can be explained as a sort of “secret sharing”. The “secret” is divided into different parts, so participants have their unique parts. Hence, this mechanism can be understood as the key foundation for the protocol to maintain all its’ data fully secret.

The sMPC mechanism is what allows so-called “untrusted DarkNodes” to run scripts, with no need for revealing neither their inputs nor outputs.

The BFT algorithm works as a set of network consensus rules, allowing the network to perform well, even in the case of potential risk related to malicious nodes.

And last (but never least), the Hyperdrive is a modified version of the Tendermint consensus algorithm. For those unaware, Tendermint is a well-known blockchain company, related to the InterChain Foundation.

Potential Use Cases (In Layman’s Terms)

Imagine a DEX on Ethereum being able to trade Bitcoin pairs or even MakerDAO CDP being collateralized by Bitcoin. Consider all these features with no use of ERC20 representation of Bitcoin, but using the actual BTC, attached directly to the Bitcoin Network.

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It would sound simply impossible not long ago, but now it is completely viable by using REN.

Token Usage

The use of the token is to bond to the network and give the user the right to run what’s called DarkNode. As part of running the DarkNode, the same user can earn a share of the liquidity that moves through the platform.

Also, as value cruises in the network, as it is bonded, REN can put more liquidity through the network, so revenue supply goes up and therefore it is possible to support even more DarkNodes.

Governance Model

Although REN is used worldwide, its community has a concentrated number of users located in China and Europe. As the protocol uses a community-first instance to approach their customers, it has established a unique program of REN ambassadors to produce content, helping to engage the community.

A data-based website is also among plans to come, so metrics and reliable information about the network will be easier available for all the community. The goal here is to show the network in numbers, which include transaction history, token percentage bonded by DarkNodes, revenue charts, and other useful data charts.

Team And Partnerships

REN has partnered with two industry giants to make the idea come true, Wyre and TrueUSD. Wyre brings more liquidity by using its’ trading desk, also enabling a seamlessly KYC (Know-Your-Customer) experience.

On the other hand, TrueUSD plays an essential role to allow fiat on-and-off ramps. It will also be the favorite stable coin to be used within the RenEx platform.

REN’s CTO Loong Wang can be considered the more prominent public figure ahead of the project, participating in several interviews and thinktanks amid the scene. He has some experience in the field, working as a developer specializing in distributed systems and high-performance computing.

The project’s CEO is software engineer Taiyang Zhang, co-founder of Virgil Capital, and highly experienced as an algorithmic trader.

In Summary

A disruptive idea on its own right, REN is a protocol that aims to provide access to inter-blockchain liquidity to empower decentralized applications with endless possibilities (such as bringing Bitcoin onto Ethereum DApps, for instance).

Relying on their exclusive RenVM, which is a decentralized virtual machine with no trust, it uses advanced MPC (Multi-Party Computation), secret data sharing, and algorithmic-based technology to make the idea come true.