Interoperability between blockchains is quickly turning into one of many buzz phrases being thrown round when discussing decentralized finance and
Interoperability between blockchains is quickly turning into one of many buzz phrases being thrown round when discussing decentralized finance and the cash almost definitely to rally throughout an altcoin bull run.
The speedy development of DeFi, its ever increasing whole worth locked and hovering ETH fuel charges additional spotlight the sector’s want for a layer 2 choice that additionally helps the power to transact worth throughout totally different networks.
REN’s open protocol is designed particularly to fill this want by offering interoperability and liquidity between the highest blockchains together with Bitcoin, Ethereum and Zcash.
Over the previous three weeks the worth of REN has elevated by greater than 200%, going from $0.251 on Dec. 27 to a brand new all-time excessive of $0.778 on Jan. 20 pushed by a file $369 million in 24-hour quantity.
Three causes for the latest worth surge within the worth of REN embody the announcement of a collaboration with Google, the continued enhance in whole worth locked on the platform and the power to earn passive earnings in a number of cryptocurrencies by means of the operation of a darknode.
Google software program pivot boosts sentiment, addresses RENvm scaling points
On Jan.19 the REN staff tweeted:
Ren has been researching & constructing on @Asylodev, an open and versatile framework by @Google. @GCPCloud confidential computing relaxes RenVM’s financial constraints, permitting for an unbounded scaling resolution. #RenVM.”
Not lengthy after the tweet, REN worth started to rally to a brand new all-time excessive. As talked about within the tweet, Asylo is an open and versatile framework from Google designed to assist construct transportable purposes that run on Safe Enclave {hardware}.
The safe enclave {hardware} permits customers to run general-purpose purposes in a safe atmosphere the place each the info, and the applying itself, can’t be compromised by anybody, together with the consumer. This makes for a safer expertise for all events concerned and helps shield towards malicious code and backdoor assaults.
Asylo additionally makes it doable to port an software from one kind of {hardware} to the following, that means that builders can assist a number of implementations with relative ease, together with Intel implementations, AMD implementations, and any others that seem sooner or later. The range of selection this permits is a crucial characteristic to make sure decentralization on the community.
Complete worth locked soars to a brand new excessive
Neighborhood engagement and added worth are key elements in terms of the long-term success of a blockchain mission.
For the reason that launch of the Ren digital machine mainnet (RenVM) in Could 2020, engagement on the platform has steadily elevated as Bitcoin holders now had one other option to deliver their BTC to Ethereum and the rising DeFi area.
As seen within the chart beneath, the full worth locked on the Ren platform reached a brand new all-time excessive of $653.6 million on Jan. 20 and a complete of 14,670 BTC are locked on the platform to create renBTC.
The record of belongings that RenVM helps continues to develop with BTC, Bitcoin Money (BCH), Zcash (ZEC), Filecoin (FIL), Terra (LUNA), Dogecoin (DOGE) and Digibyte (DGB) at present accessible to transact on the Ethereum and Binance blockchains.
Growth is at present underway to make it doable to work together on the Polkadot (DOT), Solana (SOL) and Cosmos (ATOM) networks as nicely, which might additional improve the interoperability supplied.
Darknodes, passive earnings and a reducing provide
The third driving drive behind the latest worth appreciation of REN pertains to the Ren token use case and the way it may help customers earn passive earnings. RenVM is a community of digital computer systems that make up a digital machine, that are additionally known as Darknodes.
REN token holders who want to function a darknode must lock up 100,000 REN which wiil allow them to course of transactions on the community and earn a price within the type of the token transacted. Thus, a darknode operator has the chance to earn passive earnings within the type of a number of totally different cryptocurrencies from one location.
As may be seen within the above graphic, 17.13% of REN’s whole provide is at present bonded on the platform and helps the operation of darknodes.
Throughout probably the most just lately accomplished cycle, the community as a complete earned $839,128 in charges within the type of BTC, ZEC, FIL and BCH. The full community charges collected because the launch of the RenVM equals $2.975 million.
The continued addition of latest tokens and interoperability with new blockchains will seemingly see elevated utilization of the community and a rise within the quantity of charges earned. On the present worth of $0.6157 it prices $61,570 to function a darknode.
As exercise on the community will increase, the quantity of charges generated may even enhance, making it much more profitable for token holders to function a darknode. This has the potential to result in additional worth…