The Ren protocol integrates the layer 2 network Optimism and other recent integrations such as the cross-chain engine Symbiosis and the BTC cross-chain communication highway ZeroDAO or the upcoming revolutionary multi-purpose decentralized exchange protocol CATALOG on the Ren network.
What is the Ren protocol?
In its basic form, RenVM is a network that allows blockchains to talk to each other and uses a multi-part computation algorithm as a consensus protocol for all this to happen. The result is a decentralized depository, without authorization and trust, able to lock assets in the chain and issue them individually. This allows users to perform unique operations without any complications.
To be more precise, RenVM is the engine that powers the solution and is not an application or a product in itself. But it allows developers to bring cross-channel functionality to their challenging applications.
Ren protocol from RenEX to RenVM
RenVM is a virtual machine that serves as the basis for functioning the so-called Ren protocol. This is a protocol that aims to create mechanisms of blockchain interoperability between various cryptocurrencies and the challenging ecosystem on Ethereum. All this while guaranteeing the following principles: Decentralization, Security, Confidentiality, and speed in your operations.
RenVM relies on a framework of smart contracts on Ethereum that interact with the so-called Dark Nodes to achieve this. These Dark nodes are decentralized nodes charged with making the interoperability of blockchain possible, enjoying the above principles. To achieve this, the Dark nodes use a series of powerful cryptographic technologies such as Shamir Secret Sharing (SSS), Secure Multi-Party Computing Systems (sMPC), and Hyperdrive, the high-speed consensus algorithm. We are talking about a set of tools designed to provide a working environment that meets the objectives of Ren Protocol’s developers.
What are Ren Dark nodes?
The RenVM network consists of thousands of nodes called Dark nodes. Anyone can manage a RenVM (Dark node) node as long as they run the RenVM software via the private virtual network and deposit 100,000 Ren tokens. This mechanism encourages node operators to refrain from malicious behavior at the risk of losing their repository.
Once a day, the RenVM or Dark nodes are randomly re-organized into groups called “fragments”. It is a process that reinforces the RenVM protocol against attacks on its network by keeping potential data targeted by attacks constantly moving and regenerating. RenVM or Dark nodes also charge a fee each time RenVM converts a digital asset (BTC, LUNA, DOGE…) into ERC20 (Ethereum) or another host-chain supported.
Is Ren protocol a good investment?
There are a lot of critics as RenVM is still not 100% decentralized. However, the number of Dark nodes is increasing during this 2022 bear market, and the total value locked maintained its levels even in the worst market conditions as the ren protocol is one of few protocols that never goes down or gets hacked. If the team successfully launches the RenVM decentralized version, the price of REN token will go to a new ATH. The transition to mainnet will not be an easy task. We don’t offer financial advice, DCA, and don’t invest more than you can lose.
How can I buy a REN token?
The REN token is a freely negotiable token and is present in various major markets. Of these, Binance and Huobi Global had the highest volume. The pairs include cryptocurrency, fiat, and stable currencies.