While Ethereum has played a crucial role in the cryptocurrency space, it had one limitation - the inability to share its utility with other blockchains. To address this issue, Ren (REN) was introduced, aiming to unlock asset and chain interoperability for the decentralized finance (DeFi) ecosystem on Ethereum. By enabling seamless interactions between different blockchains, Ren enhances the versatility and efficiency of DeFi applications, opening up new possibilities for decentralized finance.
What is Ren?
Ren is an open protocol that fosters interoperability and liquidity between various blockchain networks. Previously known as Republic Protocol, Ren was among the pioneering protocols to function as a bridge, enabling the seamless transfer of digital assets between different blockchains.
By serving as a bridge, Ren aims to extend the accessibility of Ethereum's diverse DeFi ecosystem to blockchains such as Bitcoin, which may lack similar interoperability features. For instance, when users lock Bitcoin (BTC) or Bitcoin Cash (BCH), Ren Protocol mints equivalent ERC-20 tokens called renBTC and renBCH, which can be utilized within Ethereum's DeFi protocols.
Ren eliminates the need for complex intermediary steps, such as using "wrapped" versions of tokens, to transfer assets across blockchains, thereby simplifying and enhancing cross-chain functionality.
The Ren team
The Ren protocol was founded in 2017 by software developers Taiyang Zhang and Loong Wang. Since then, the Ren team has expanded to include a diverse group of developers, engineers, managers, and advisors contributing to the project's ongoing development and success.
How does Ren work?
Ren is an advanced protocol that facilitates the movement of digital assets across different blockchains through a multi-chain bridge. Its robust infrastructure is built on critical components, which include:
RenVM
The Ren Virtual Machine (RenVM) is a network of decentralized machines known as "Darknodes" that power the protocol. RenVM acts as a trustless custodian, enabling the creation of RenBTC for every BTC locked up on the network.
Darknodes
Darknodes operate similarly to miners on the Bitcoin network but in a Proof of Stake (PoS) manner. To run a Darknode, an operator must stake a minimum of 100,000 REN and operate a Virtual Private Server (VPS).
Shamir’s Secret Sharing
This is a highly efficient sharing algorithm used on the blockchain. It involves distributing tokens to participants in a group to achieve consensus without requiring all parties to reveal the secret during the process.
REN tokenomics
REN is an ERC-20 standard token with a fixed market cap of 1,000,000,000 REN, and all tokens are in circulation. Approximately 84.3 percent of the circulating supply is held by the top 100 REN wallet addresses.
REN use cases
REN, the utility token within the Ren Protocol ecosystem, serves a broad spectrum of functions. Its primary role is facilitating the bridging of tokens into DeFi. For instance, REN tokens can be converted into RenBTC, an ERC-20 token, enabling access to the Ethereum blockchain. This novel feature empowers users to leverage Ethereum's capabilities, including smart contracts, utilizing their Bitcoin holdings. This mechanism also extends to incompatible tokens, such as ZCash, which can be transformed into RenZEC.
Moreover, REN token holders can engage as Darknodes by staking their tokens. To register, users need to commit a minimum of 100,000 REN tokens. In exchange for this commitment, they receive rewards for contributing to the network's security and integrity.
Distribution of REN
The distribution of REN tokens is as follows:
- 60.2 percent was sold during the REN presale in 2018.
- 19.9 percent of tokens are allocated to the reserve fund.
- 10 percent of REN is for partnerships.
- 9.9 percent of tokens are reserved for the REN team.
Ren: the road ahead
Ren is currently building a second version of its decentralized protocol that will be more efficient and secure than Ren 1.0. With Ren 2.0 set to be fully compatible with Ethereum Virtual Machine (EVM). Its primary advancements will be decentralization and security but implementing an improved MPC algorithm thats more scalable, supports more signing schemes — called Flexible Round-Optimized Schnorr Threshold (FROST) — and has an optimized tokenomics which focuses on providing more incentives to its users. All of these improvements and developments set Ren up for a great return.