ThorChain is a crypto network that enables the exchange of assets across the blockchain network in a non-custodial manner. It was launched in 2018 and offers a wide range of services on its decentralized network. By providing continuous liquidity pools for users, it allows swapping of assets like Bitcoin and Ethereum. This article is a complete guide to ThorChain. We have included everything you wanted to know about ThorChain, its uses, etc.
As said above, ThorChain was formed in 2018 under the premise that the use of centralized exchanges to transfer crypto-assets between different blockchains was flawed. It uses a cross-chain and can be used on any blockchain/with any asset, unlike other decentralized exchanges. ThorChain platform uses proof of stake consensus algorithm and built on Tendermint, with network validators required to bond its native token, $RUNE.
What is the $RUNE token?
RUNE token is the native token of ThorChain and it is essential to the entire ThorChain ecosystem. These native tokens will run by the nodes of ThorChain, which is an integral part of the ThorChain. There are many uses for RUNE tokens like rewarding users for providing liquidity in securing the network through bonded stakes, RUNE serves a crypto-economic function in providing incentives and deterrents for the protocol.
This native token of ThorChain is also an important part of the ThorChain security because it protects against malicious actions by offering them a larger benefit for liquidating than they would receive from corrupting the system, as nodes earn two-thirds of the System Income. So all transactions using RUNE on the system have double the amount at a 67% to 33% ratio. Among the total 500 million total token supply, 100 million will be sold to the public in 3 stages, 150 million has already been allocated throughout the team, community and operational reserves, and the remaining 220 million are saved for the emissions reserve.
Benefits of ThorChain
The main benefits and features of the ThorChain network are listed below.
- Cross-chain feature: The benefits of this cross-chain feature is that any asset can be swapped and a pool can be created around it.
- Gives users a huge amount of variety unlike other decentralized exchange options
- Provides more opportunities and possibilities for DeFi users
- This decentralized network provides features for uniswap
- It will help to achieve optimal network security from malicious actions
ThorChain enables on-chain governance which solves the two biggest problems of the crypto world. It is more decentralized than the existing system and it also enables fast and easy integration of changes to the protocol. As a result of this, proposing a change and reaching a consensus among stakeholders is much faster than in an off-chain protocol. That is, the ThorChain economic model or governance model was designed to solve this problem.