You may have heard about the REN project. If not, or if you want to learn more about how it works, stay reading this article because I will tell you all about it below.
REN is a blockchain project that is known as the first and only open source protocol that provides access to liquidity between blockchains for all decentralized applications or dApps. Such a project enables communication and token delivery between blockchains through the use of smart contracts.
The project has its own virtual machine, RenVM. The RenVM is a decentralized virtual machine that plays the role of an engine for the platform and does not need to rely on third parties or intermediaries to function. This virtual machine operates through a new secure computation algorithm that enables secure computations through multiple inputs and multiple parties. Such computations enhance a privacy layer for dApps. If you want to know more about the Ren Virtual Machine, you can check this article.
Ren’s story begins thanks to its two creators named Taiyang Zhang and Loong Wang. Both developers were classmates at the Australian National University. Moreover, Taiyang Zhang and Loong Wang worked together at the same startup after graduating. It all started when Zhang’s friend asked him to program a trading algorithm intended for his cryptocurrency hedge fund. That hedge fund was called Virgil Capital which Zhang co-founded.
During his work at Virgil Capital, Zhang thought there was a lack of support for OTC cryptocurrency trading. At the time, there was no way for investors to buy a large number of cryptocurrencies without affecting the markets. This was because all transactions were publicly available on the blockchain just as they are now, including OTC trading.
With the advent of Ethereum Zhang believed that this project would be the perfect platform to build the project that would later become the solution to the OTC problem, REN Republic Protocol.
Wang’s addition to the project was not a surprise, as Wang had extensive experience in coding Blockchain technologies so Zhang invited him to participate.
When Wang joined the project, he almost immediately realized that there was yet another problem in the world of cryptocurrencies. This problem was the lack of interoperability between blockchains. As a result of this problem, the Ren project was founded.
By 2017 REN was already a fact after its foundation. This project had as its main objective to make OTC cryptocurrency trading achieve full decentralization in addition to creating a protocol for blockchains to interact.
Raising capital was not difficult at all, as in 2018, the project launched two rounds of initial coin offerings or ICOs through the REN token. The first ICO was private and took place in January of the same year. That ICO managed to raise $28 million.
The second ICO was of a public nature and took place in February of the same year. It raised 4.8 million dollars. At that time the token was worth around 0.05 dollars and more than 56% of the total supply of the token was sold.
As mentioned above, REN is based on the Ethereum blockchain so it is an ERC-20 token. The project is responsible for providing an open source protocol with the goal of creating a decentralized network of nodes to match orders, without having order information.
To achieve this privacy, orders are first divided into cryptographic fragments that will later be distributed throughout the network. The project nodes work on combining fragments without revealing the market intent and then matching the reconstructed orders.
When matches have been found, atomic exchange between traders is initiated through the peer-to-peer (P2P) network. This protocol is largely prepared for smooth operation through a decentralized and hidden order book and atomic exchange infrastructure for trading between BTC, ETH and ERC20 blockchains.
As mentioned above, the Ren project enables the decentralized exchange of cryptocurrency assets through blockchains using its core platform known as Ren Virtual Machine (RenVM).
The exchange on the platform is achieved using the “Darknodes” responsible for providing the computing power to achieve the identification and processing of cryptocurrency orders between blockchains. This process is achieved using an algorithm known as “Shamir Secret Sharing Scheme“. Said algorithm is responsible for fragmenting the orders in such a way that the Darknodes do not know the amount involved in the transaction or the destination of the cryptocurrency being carried out.
This project has an important element for its operation. This is RenEx in charge of providing a set of tools aimed at making it possible for funds and institutional investors to operate in a digital asset market in a secure and equitable manner.
This is a service that did not exist in the market at the time of the project’s creation. This element is strongly supported by major funds, strategic investors, trading desks and many other participants in the same market.
As expected, this project, like many others, has its own native platform token. This token is used to pay the fees associated with the use of the platform.
The total supply established by the development team for this ERC-20 token is 1,000,000,000,000 REN of which more than 851,254,753 REN are in circulation.