🚀 Greet from Decentralisland,

We're about to dive into the exciting world of Thorchain (RUNE), where crypto assets fly freely between different blockchains without any intermediaries.

In 5 minutes, you’ll learn:

• What is Thorchain (RUNE)

• How Thorchain enables users to swap assets between different blockchains

• The role of the native token RUNE in Thorchain's ecosystem

• The technology behind Thorchain

• The challenges and criticisms faced by Thorchain

Get ready for a decentralized journey that will leave you wanting more 🔎

Well, it's a decentralized cross-chain liquidity protocol that breaks down barriers and lets you swap assets across various blockchain networks. No more fussing with wrapped or pegged tokens, my friends!

Thorchain's native token, RUNE, plays a crucial role in every swap, acting as a pairing token and a security mechanism for the network. Say goodbye to the liquidity and interoperability issues that have plagued the crypto space.

👀 But wait, there's more!

Thorchain isn't just solving real-world use cases; it's revolutionizing them!

Picture this: you can swap Bitcoin for Ether, or BNB for LTC, all without relying on centralized exchanges or middlemen.

Thorchain opens the door to a whole universe of crypto assets and services, accessible at your fingertips. Say hello to a world of endless possibilities!

How does Thorchain make this magic happen?

Brace yourself for the technical stuff: Thorchain has its own blockchain, powered by Cosmos, a platform that enables seamless interoperability between different blockchains - Read all about Cosmos in our Cosmos Altcoin Analysis.

They've also got RUNE, the trusty sidekick, serving as a bridge for all the assets and chains supported by Thorchain.

But that's not all, folks!

Thorchain has plans to introduce synthetic assets, lending, and order books in the future.

Now, let's get down to business. Want to swap assets on Thorchain?

A visual representation on how Thorchain works Source: greymattercapital.substack.com/p/thorchain-analysis-and-valuation

You'll need to wade into the liquidity pools. These bad boys are pools of two assets locked by users who want to provide liquidity and earn rewards.

For example, to swap BTC for ETH, you'll dive into a BTC-ETH pool that contains BTC and RUNE, as well as ETH and RUNE. Every pool has RUNE paired with another asset, creating the magic sauce for Thorchain's swaps. It's like a cosmic dance that connects any two assets across any two chains, all thanks to RUNE as the common denominator.

gagarin.news/news/decoding-the-thorchain-rune-protocol-a-comprehensive-review/

And here's the cherry on top: Thorchain uses a fancy technology called Threshold Signature Scheme (TSS), allowing multiple nodes to generate signatures without revealing their private keys.

Your assets are safe and sound, my friend!

"But is it safe?" I hear you asking.

Fear not, for Thorchain has got your back!

The network is secured by node operators, the valiant validators who run the Thorchain blockchain and process the swaps. These operators bond their precious RUNE to enter the network, and their bonds are worth more than the assets they safeguard. This nifty setup ensures that the operators have a juicy incentive to play by the rules and protect the network.

Safety first, my fellow crypto adventurers!

It's not just any old token, my friends—it's a gem that grows in value as the network's utilization skyrockets. The more liquidity that flows into Thorchain's pools, the more valuable RUNE becomes. It's a win-win situation!

A calculation of the RUNE price, determined by the % supply of Bitcoin and Ethereum (1%) locked within the network, combined with a value increase in asset prices (2x).

Calculate the value of RUNE by playing with the metrics of how many assets are in the network 👉 RUNE - THORChain.

But RUNE isn't just for show; it's a versatile token with multiple purposes.

You can use it to pay for fees, shape the governance of Thorchain, and, of course, keep the network secure. It's a true multitasker!

As of June 2023, Thorchain has a market cap of $371.63 million, ranking it as the 110th largest crypto project by CoinGecko. The price of RUNE is $1.10, which is influenced by the demand for cross-chain liquidity and the amount of RUNE staked or bonded by liquidity providers and node operators.

RUNE has a unique model that rewards its holders as the network utilization increases. It's like watching your investment grow alongside Thorchain's success.

But there's more to it than that!

When you provide liquidity to the network, you'll need to deposit RUNE along with another asset. This constant demand for RUNE in the liquidity pools creates scarcity and keeps the token on its toes. It's a clever system that ensures RUNE remains a vital part of Thorchain's ecosystem.

Not to mention, it helps to pay for fees, govern the network, and maintain its security. RUNE truly wears many hats!

A quick look into the RUNE allocation for investors, and the RUNE supply vesting schedule:

RUNE token allocation. Coingecko.

RUNE token supply schedule. Coingecko.

Fear not, my curious friends, for I shall enlighten you!

Thorchain utilizes the Tendermint consensus engine and the Cosmos-SDK state machine to secure its network. It's like a digital fortress protecting your assets.

Tendermint, a Byzantine Fault Tolerant (BFT) consensus algorithm, requires the agreement of two-thirds of validators before a block is finalized. This ensures the network's stability and reliability.

And let's not forget about the Cosmos-SDK, a framework that empowers developers to create interoperable blockchain applications using modular components. It's the backbone that makes Thorchain's cross-chain magic possible.

Plus, Thorchain employs the mighty Threshold Signature Schemes (TSS) for its leaderless primary vault, allowing multiple parties to generate signatures without revealing their private keys. It's a cutting-edge cryptographic technique that adds an extra layer of security. Impressive, isn't it?

Thorchain boasts a stellar team of developers who have been diligently working on the project since its inception in 2018. Though they've chosen to remain anonymous, they've consistently delivered updates and improvements to the protocol.

Thorchain has also formed exciting partnerships and integrations with other prominent projects in the crypto space. Think ShapeShift, Sifchain, THORSwap, Asgardex, XDEFI Wallet, and many more.

These collaborations strengthen Thorchain's position and expand its reach in the ever-growing crypto landscape. With a clear vision and roadmap that includes adding more chains, synthetic assets, lending, order books, and protocol-owned liquidity, Thorchain is setting the stage for a thrilling future.

But like any epic adventure, Thorchain faces challenges and critics along the way.

Security breaches have been a concern, with several hacks in 2021 resulting in the loss or theft of millions of dollars. The team has been hard at work, fixing bugs and vulnerabilities, but understandably, some users may still have reservations about the safety of their funds on Thorchain.

Additionally, scalability is another hurdle to overcome. As more users flock to the protocol, congestion and high fees may rear their heads. But fear not, for Thorchain has plans in motion, such as Synths and Order Books, to enhance the swap experience.

Thorchain has some mind-blowing collaborations that deserve a special mention.

ShapeShift, the non-custodial platform, has joined forces with Thorchain, enabling users to swap between thousands of crypto assets across multiple blockchains using Thorchain's technology.

Then there's Sifchain, a decentralized exchange protocol leveraging Thorchain's cross-chain infrastructure to enable trading between the Ethereum and Cosmos ecosystems.

And let's not forget THORSwap, the trailblazer in the multichain decentralized exchange realm. THORSwap utilizes Thorchain's network as a front-end interface, making cross-chain swaps a breeze.

Thorswap UI

These partnerships bring together the best of the best, creating a synergy that benefits users and propels the crypto industry forward.

Well, Thorchain has cultivated a vibrant and passionate community that stands behind its vision and mission. Their community calls themselves “THORguards” which even have their own 3D NFT collection.

This community is more than just a bunch of enthusiasts; they actively contribute to the project's development, testing, education, marketing, and governance. With almost 200k Twitter followers, over 100k Telegram members, over 50k Reddit subscribers, and over 20k Medium readers, Thorchain's community is a force to be reckoned with.

They show up for events like the THORChain Hackathon, the THORChain University, and the THORChain Grants Program, demonstrating their unwavering support for the project's growth and success.

Now, let's put on our investment hats and analyze the situation.

Based on all the factors we've discussed, I give Thorchain a solid score of 4 out of 5.

It's a project that holds immense promise and innovation, tackling one of the crypto world's greatest challenges: cross-chain liquidity.

With a strong team, a clear roadmap, a passionate community, and notable partnerships, Thorchain has all the ingredients for success. Its unique token model, which aligns the incentives of all stakeholders, creates a positive feedback loop for network growth.

However, we must acknowledge the risks and uncertainties. Security breaches, scalability concerns, regulatory hurdles, and competition from other projects pose challenges that investors should be aware of. It's essential to conduct thorough research and due diligence before diving into the world of Thorchain.

So, there you have it—a thrilling adventure through the world of Thorchain (RUNE).

Remember, always do your research and dive deep into projects before making investment decisions. Thorchain has had its ups and downs, just like any other crypto, but it's essential to learn from past mistakes and keep moving forward.

With all this information in mind, you're better equipped to navigate the exciting world of Thorchain and make informed decisions. Crypto is a thrilling space, full of opportunities and risks.

Stay curious, keep learning, and who knows, you might discover the next big thing in the crypto universe! 🚀💫

The Altcoin Analyst

P.S. If you made it this far, you wanna join our Altcoin Analysts Discord (be quick, this link expires after 100 uses) where we discuss the latest trends in crypto together. Let's make magic happen in the world of altcoins! ✨💪