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What is Thorchain (RUNE) and how does it work?

by Financial Economy

THORChain is a crypto currency project that provides various services in a decentralized and permissionless network. Providing continuous liquidity pools for users, THORChain also allows trading of crypto currencies such as Bitcoin and Ethereum. Detailed information about Thorchain (RUNE) and how does it work is in the continuation of the article. For information about Decred coin (DCR), you can check here.

What is Thorchain (RUNE) and how does it work?

THORChain is a liquidity protocol based on Tendermint and Cosmos-SDK. Thorchain uses Threshold Signature Plans (TSS) to create a liquidity market for digital assets that are traded in an unattended manner, without the need to rely on third parties, without the need for special authorization. THORChain’s liquidity market design eliminates the need for order book exchanges when exchanging one asset for another and provides ancillary benefits including manipulation resistance and on-chain price feeds. Additionally, THORChain can remain off-chain, do not require a specific asset or Blockchain, and can scale without compromising security.

According to the statements made, there are four basic roles in the system:

  • Stakes paid to provide liquidity
  • Swappers that use liquidity and pay fees to temporarily swap assets
  • Investors who constantly monitor and rebalance pools, pay fees and profit from them
  • Node operators who provide a guarantee and get paid to secure the system

RUNE is the entity that powers the THORChain ecosystem and provides the economic incentives needed to secure the network. So, the core crypto currency of the Thorchain ecosystem is RUNE. Thorchain (RUNE) is used on the platform for liquidity, security, governance and incentive purposes. In addition, the base currency of the platform, RUNE, is also used as a transaction fee on the network.

How to buy Thorchain coin (RUNE)?

Questions such as where to buy Thorchain (RUNE) and how to buy RUNE are being wondered by investors. RUNE can be purchased on trusted and well-known crypto currency exchanges.

For information about crypto currency: https://en.wikipedia.org/wiki/Cryptocurrency

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