One of the most important topics in the field of cryptocurrency is without a doubt the proper functioning of the blockchains. This is a development that should leave a big mark on the blockchain and crypto revolution that is currently underway. Thorchain contributes to making this mark, through its platform and token (RUNE). In this article we explain everything about Thorchain, and also tell you where to buy the RUNE token.
What is Thorchain?
Thorchain is an independent blockchain built using the Cosmos SDK that will serve as a cross-chain decentralized exchange (DEX). It uses an automated market maker (AMM) model, which resembles the first iterations of Bancor (BNT) or Uniswap .
This model allows traders to transact between different asset pools using the RUNE token. This is the only intermediary involved in the transaction. The platform also rewards liquidity providers (LPs). These are the ones who deposit or ‘stake’ assets on either side of a liquidity pool, with a share of the trading fees.
The Thorchain team is based in Australia, but members are mostly anonymous to better protect the project from outside influences. Figureheads, founders and personalities undermine a project’s ability to decentralize. They want transparency to be expressed in other aspects, such as cash flow, code and research.
Yet this also ensures that there are many crypto enthusiasts who decide not to invest in Thorchain. It is important for many investors to know who is behind the project, in order to be able to research the qualities of the team. And that makes sense, because often projects with talented team members are more successful than when a team consists of strangers.
What is a DEX?
DEX stands for Decentralized Exchange, and is a decentralized crypto exchange . Unlike centralized crypto exchanges, a DEX can also combat cyber-attacks more effectively. In addition, they are better protected with regard to security, privacy and autonomy. The majority of DEXs (90% of the most active DEXs) are hosted on the Ethereum network.
For example, when you want to trade Ethereum for Bitcoin , certain features will compare the different rates charged by the DEXs and proceed to the trade with the one that offers the best rate. Ultimately, the platform is a simple interface that connects a buyer and a seller. You don’t need more than a login, a password and a crypto wallet for this. The downside is that DEXs are slower than centralized exchange platforms, especially when there is a lot of traffic.
In addition, things can go wrong more easily during a transaction than on a centralized exchange. That’s because you have to perform many more steps on a DEX. And the steps you have to take are also quite complicated.
The RUNE Token
RUNE is the native token of the Thorchain platform. They plan to publish the RUNE token in accordance with the BEP-2 standard on Binance Chain. In the Thorchain ecosystem, RUNE acts as a utility token. It is used to pay swap, participate in governance, and reward validators.
What is the RUNE token?
Thorchain is a project whose fuel is none other than the RUNE cryptocurrency. This is advantageous because of its smooth functioning, but also for managing the liquidity pools needed to set it up. All this under the motto stated on the website indicating that its usefulness will create its value, and its value will be the strength of its ecosystem.
The team behind Thorchain states that ‘RUNE is the base currency and must be supplied with every asset in the pools. Without its own currency, each asset would have to be pooled with all other assets, ultimately resulting in hundreds of new pools for a single new asset, diluting liquidity.”
So far, the success seems to be clear. The RUNE coin has been performing well since its official launch in July 2019. Its value has risen from 40.025 to close to $14 in April 2021. That is an increase of more than 94,000%, which is a very significant increase.
The RUNE Chart
When you think about buying RUNE, you first want to know what the price is. Nobody wants to pay too much for RUNE. That is why it is best to go to CoinMarketCap for the price of RUNE:
What are RUNE tokens used for?
Of course, a blockchain only publishes its own coin or token when it has a purpose. This is no different for Thorchain. They have therefore also found several functions for the RUNE token:
- RUNE token will come back in all CLP pools to create liquidity.
- Validators must use the RUNE token to be deployed and part of the validator suite.
- These validators or block producers will be responsible for validating transactions and creating blocks within the Thorchain Blockchain network.
- The RUNE token is used to pay transaction fees within the Thorchain blockchain network.
- The RUNT token is used to pay trading fees, transition fees and liquidity fees when using the services of Thorchain.
- The RUNE token is used to pay participation fees and liquidity hubs.
- The RUNE token is used to pay liquidity fees for RUNE token holders in tier 1 liquidity pools and tier 2 liquidity hubs.
- The RUNE token is used to reward validators. The amount of RUNE Token Rewards paid will depend on the number of tokens each validator wagers initially. This helps to encourage validators to trade and play more. See below how the reward nodes work.
Where can I buy RUNE?
Do you want to buy the token of Thorchain? This is possible on various crypto exchanges, such as Binance, Coinmerce and Bitvavo . We recommend that you choose Binance or Bitvavo. These two crypto exchanges offer the best security and highest liquidity. Within a few clicks you have RUNE tokens in your possession.
It is also possible to buy RUNE on a decentralized exchange, such as Uniswap, Thorswap or Sushiswap . As we said before, the chances of a purchase going wrong are much higher on a DEX. You have to go through many more steps, which are difficult for some to perform. That is why it is best to choose, for example, Bitvavo or Binance.
How can I save my RUNE?
If you want to store RUNE in a wallet, you can do this in most cases by using the wallet of the crypto exchange you use for your purchase. Think, for example, of the wallet of Binance or Bitvavo. It is also possible to store RUNE in a MetaMask wallet, although you must add the Binance Chain to the wallet. If you do not do this, you will not be able to find the tokens in your MetaMask wallet. However, storing your tokens and coins in a software wallet (also called a hot wallet) is not the best and safest way.
Would you like to keep your RUNE in a safe way? Then it is better to use a hardware wallet , which is also known as a cold wallet. These wallets are many times more secure than a hot wallet , because they can be disconnected from the internet. It is in fact a USB stick, which you can physically keep. By storing the hardware wallet in a safe, your RUNE tokens are protected against hackers. In that case, you must of course ensure that you do not lose your hardware wallet.
How does Thorswap work?
At first glance, this decentralized platform is nothing more than a Uniswap-like Automated Market Maker (AMM). Thorswap also has a function of attracting more liquidity providers. It also has the ability to perform exchanges (swaps) without an order book or transaction history. In this case, it is also possible to carry out these transactions between two cryptocurrencies that are not on the same blockchain. For example, a transaction can be performed between ETH and BTC. There are projects where this would not be possible, and Thorswap is therefore at the forefront in this area.
The principle of Thorswap is actually very simple. It is all based on the network called Chaosnet. It is able to perform exchanges without relying on third-party systems. All under a procedure that goes through an intermediate exchange in its RUNE cryptocurrency. This gives an ETH/RUNE/BTC-like operation that is fast enough not to risk suffering a slowdown due to market volatility. And all in one manipulation.
A solution to be tested in the near future. But it opens the way to infinite possibilities in terms of greater ability to transact between blockchains. This without having to change the structure or the fundamentals. And maybe even to avoid the current costs of the Ethereum network.
However, the Thorchain project does not want to stop there. Other capabilities should be added to the platform that is still under development soon. Consider, for example, the Asgard wallet, which should enable a more efficient connection to the Chaosnet. It is also capable of supporting the storage of cryptocurrencies from different blockchains in a common space. So many advantages compared to the competitors (such as Uniswap) that Thorswap has.
Launch of the ChaosNet network
In April 2021, the official launch of the Multichain Chaosnet of the Thorchain project was on the agenda. This news was overshadowed by Coinbase ‘s impending IPO . But this should not overshadow what could be a turning point in this ever-changing market. Because in this case it is about offering the very first tool of its kind that should ensure that people no longer have to worry about the original blockchain of a cryptocurrency.
An event registered under the hashtag #BRINGTHECHAOS took place, resulting in a virtual party being staged for the occasion. This was to celebrate what the community calls the MCCN. This stands for MultiChain ChaosNet.
The Future of Cryptocurrency
The future of the cryptocurrency universe will have to be combined in multi-chain mode. A need for proper functioning that is central to its current development. This still too often encounters the hermetic nature of the blockchains on which everything is based. This gives rise to numerous experiments that attempt to circumvent this problem. This is to be able to conduct direct exchanges between any cryptocurrency regardless of their native blockchain. An area in which the Thorchain project could well mean a small revolution.
It is difficult to navigate the multitude of blockchains on which even more cryptocurrencies are based. This in a market trying to cope with the failures of the most important of them. An Ethereum network struggling to support the development of DeFi and the transactions of its thousands of ERC-20 and NFT tokens. A reality that gives birth to even more blockchains. But that doesn’t answer the problem of being able to easily move from one to the other.
User experience is a major challenge for all types of Blockchain projects. Many projects that at first glance seem to have a good idea, often still get stuck on this. Thorchain does a lot of testing and research to optimize the user experience so that traders, strikers and swappers are as happy as possible. At the same time, they encourage them to use the project interface. In the long run, however, people will also be able to create their own interface with the Thorchain network.
The power of Thorchain is still a fully liquid, royalty-free, decentralized blockchain that is unaffected by market manipulation. That is exactly why many people have already decided to invest in RUNE. In any case, we are very curious about what the future will bring us, and what the course will do in the coming period.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com