What is REN?
Ren is a decentralized protocol that seeks to allow a global network of users to move new and established assets between different blockchains.
Users will, for example, use Ren to lock bitcoins (or other assets) in a smart contract and gain ether on the Ethereum blockchain in exchange, similarly to the Wrapped Bitcoin protocol or other wrapped variants.
Bitcoin holders will then use Ren to gain entry to Ethereum’s suite of decentralized finance (DeFi) items without selling their bitcoins or moving their properties through blockchains.
A consumer may also engage in Ethereum’s DeFi ecosystem, such as lending and investing sites like Compound or Aave, by using these Ethereum tokens. The user’s bitcoins will stay trapped in Ren program throughout this period.
If a customer wants to get their money back, they’ll need to use the REN cryptocurrency, which is used to reimburse nodes for running and managing the network.
How does REN work?
RenVM uses a methodology known as tokenized representation. This process helps you to lock up an asset and receive a one-to-one representation of it in the form of an ERC-20 token in exchange.
You will then reclaim your locked asset by burning this tokenized asset. Wrapped Bitcoin is one example of tokenized representation in the cryptocurrency ecosystem (wBTC).
RenVM, on the other hand, is unique in that it does not use a centralized custodian to store the locked assets; instead, it employs a novel protection paradigm based on a network of private and arbitrarily clustered nodes to maintain anonymity.
RenVM is made up of Darknodes, which are thousands of nodes. A Darknode may be run by anybody, but each node must use a Virtual Private Server to run the RenVM program and deposit 100,000 REN tokens into the Darknode Registry Contract.
This method incentivizes node operators to prevent malicious activity by placing their deposit at risk. Once a day, darknodes are dynamically grouped into shards, a mechanism that fortifies RenVM from network threats by having possible data targets continuously shifting and regenerating.
Every time RenVM converts a digital asset into an ERC-20 token, Darknodes collects fees. These payments are denominated in the locked asset’s cryptocurrency and are modified algorithmically dependent on demand and a discounted cash flow model.
What is the History of REN?
Taiyang Zhang and Loong Wang, both app developers, created Ren in 2017. The forum, which was formerly known as Republic Protocol, was called Ren in 2019.
Ren had a private auction in 2018, offering 56.5 percent of its REN token stock for $28.9 million in ETH. Polychain Capital and FBG Capital were among the participants in the deal.
Ren immediately went on to auction 8.6 percent of the token stock in a public token sale, receiving $4.8 million in ETH.
How do I hold REN?
REN is an ERC20 token. You can hold it on any common Ethereum wallet, such as Metamask or MyEtherWallet.