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REN: Everything You Need To Know

Many people know that the cryptocurrency market situation depends on large traders’ and investors’ behavior – “whales.” As soon as such a user deposits their assets to the exchange, smaller players start selling their coins. When the “whale” withdraws the crypto from the trading platform to its wallet, traders start to buy it. It’s often conscious manipulation to get the best rate. However, all asset movements are now easy to spot. And here, the REN coin can play an important role, which allows you to exchange cryptocurrency anonymously. Let’s find out what this project is.

What is REN?

Republic Protocol (REN) token is an altcoin based on the ERC-20 protocol. It appears to be highly liquid and free (according to the developers). The cryptocurrency is the internal coin of the decentralized exchanger of the same name and works as:

  • means of payment;
  • a collateral asset when a shadow node (darknode) is launched.

The platform operates based on the RenVM protocol and is compatible with Bitcoin, Ether, Bitcoin Cash, and Zcash. Users can conduct OTC trades through the dedicated Darknodes network.

The RenVM virtual machine uses a particular cryptographic algorithm – Shamir’s secret sharing scheme. Its essence is quite simple: all transactions with large amounts are divided into many small ones. They are processed by separate nodes, which don’t know the total amount of the operation and the final recipient.

The Darknodes network is based on the sMPC computational algorithm. It allows you to run collaborative scripts without exposing the inputs and outputs to anyone (even RenVM-enabled devices).

Everyone who wants to launch a darknode must top up the Registrator’s wallet in the amount of REN 100,000. In this case, the reward for processing operations will be paid from the same tokens.

The Byzantine fault tolerance mechanism is used to protect the system. Therefore, the data will remain safe even if attackers seize some of the nodes. The chance of an attack on the network is meager due to the high collateral cost (1 REN costs about $0.33).

Protection system

Regarding the level of protection, the REN cryptocurrency stands out not only among most altcoins but even among some top coins. The point is that each darknode can receive 1-2 fragments of a transaction. Therefore, it isn’t easy to calculate the placed buy/sell order. Also, you need to have access to all the nodes for complete control, which is a too expensive and complicated task.

It’s also profitless to create fake counter orders in the network to determine the liquidity of counterparties. When placing an order, a deposit is made, and a transaction fee is paid, and when the hacker’s activities are disclosed, a deposit is not returned.

The Republic Protocol token is entirely decentralized. Therefore it’s not subject to control and restrictions from financial regulators. And the RenVM algorithm provides fast and convenient inter-blockchain asset exchange, thereby supporting blockchain interoperability. It increases the efficiency of DeFi services and the mass of liquid assets based on Ethereum.

RenVM virtual machine provides unique cross-blockchain interoperability. Therefore, any project from decentralized finance can add support for RenVM in their applications and existing smart contracts.

The origin and team

The REN project was created by Australian students Taiyang Zhang and Long Wang. They used to run their own software development company. But after a while, Zhang set up a crypto investment fund Virgil Capital and asked Long Wang to create a trading algorithm.

While working on the project, Zhang realized that big shot investor has could “rock” the market. Also there is no full support for off-exchange crypto trading (OTC). Moreover, investors are unable to buy even more crypto without disrupting the cryptocurrency market.

Such features are because all operations are in the public domain, including the over-the-counter purchase of coins. There are also special applications that track the activity of “whales” and notify users about such operations on the exchange. It further attracts the community’s attention and leads to large fluctuations in the exchange rate caused by the actions of speculators. 

Every time a large investor makes a substantial deposit on the trading platform, it’s usually perceived as a potential sale. And vice versa: withdrawing funds to the wallet signals to traders that the coin should be held (or replenished with it in their investment portfolio). Usually, this is all followed by general panic or euphoria.

OTC transactions in their usual form are suitable only for moneybags who want to make a deal without making a noise in the market. And due to the openness of the blockchain networks of top coins for OTC transactions, it’s necessary to involve centralized intermediaries, which don’t always inspire sufficient trust. 

Therefore, he wanted to find a solution that makes cross-blockchain transactions anonymous. It was the idea behind Republic Protocol. REN token trading began in spring 2018 after the initial coin offering. Several dozen large companies promptly supported the project. 

Mining

The Republican Protocol doesn’t support Proof-of-Work mining. Earnings are credited by confirming transactions through the darknode.

To register a shadow node, you need to put 1 ETH on the Metamask wallet and deposit a deposit of 100,000 REN. An Amazon AWS or Digital Ocean account is also required.

Use special software for Linux or macOS systems to create a node. For a Windows computer, you need a virtual server or Linux Sub-System. More information about installing a shadow node can be found here

Where to buy cryptocurrency, available exchanges

Now REN tokens are supported by dozens of trading platforms, including platforms from the top 10. If the token becomes more attractive, then the coin may be added to Binaryx. 

REN Wallets

You can store coins on any cryptocurrency wallet that supports ERC-20 tokens. Most often, users choose MEW, Metamask, and Trust Wallet, as well as a Ledger cold wallet.

Advantages and disadvantages of the project

ProsCons
Secure decentralized exchangeWeak marketing
Support of DeFi servicesNo clear roadmap for 2021
Low transaction fees
The unique customer identification algorithm
Supported by financial corporations

Development prospects

Independent marketplaces and exchangers receive significant support from users. It shows that such platforms remain relevant and in demand. Hence, the Republic Protocol project will grow further and use unique updates and technologies.

Among the benefits of crypto, analysts note the anonymous nature, smart contracts’ reliability, and the future infrastructure. All of this provides excellent chances for large investors and traders and increases digital currencies’ market cap. 

Also, as we said before, the internal Republic Protocol token is used as a payment and collateral means. All this reduces the possibility of a hacker attack on the REN network. After all, it would be profitless for an attacker to control many darknodes or create fake orders. It makes the coin exceptionally safe and in high demand among traders.

Experts pay special attention to competition among tokens based on Ether. After all, the number of coins of the ERC-20 standard is counted in dozens. Therefore, each project, at first glance, has not too many excellent prospects. But by creating cross-chain links and shared liquidity, the influence of competing cryptocurrencies on the Republic Protocol is reduced. And the guarantee of anonymity and the reliability of the blockchain increase the competitiveness of the project. 

The project began to develop actively in 2018. In the first half of the year, the developers worked on the essential aspects and tested their work. And in the 3rd quarter, the main version of the Republic Protocol was released. After that, the expansion of the trading platform functionality and its cross-chain connections will begin.

Therefore, analysts advise paying attention to the REN token as an asset with high investment potential. Despite the tough competition from the ERC-20 currencies, the coin may blow up thanks to the relevant idea and new network protection mechanisms.

Besides, Republic Protocol can be profitable in both the short and long term. Short-term contributions are linked to partnership agreements and the technical side of the new platform. Long-term investments will be relevant as long as the number of users grows. 

Вывод

The weak side of the coin is the perception of the possibilities of digital currency. The fact is that over-the-counter trading leaves a somewhat overwhelming impression on the novice trader. The same applies to the withdrawal of REN to the crypto wallet and vice versa. The Republic Protocol technology’s real value is understood by a tiny percentage of people who have enough knowledge about cryptocurrency trading.

However, there’s also a positive side: the developers have shifted the emphasis from darknodes to the compatibility of different currencies’ blockchains. After all, OTC trading can become available not only to wealthy investors. 

While Republic Protocol’s dark pools are attractive due to their decentralized nature and anonymity security, there are concerns that crypto traders will not be interested in the platform compared to Gemini or Coinbase.

Simultaneously, the Republic Protocol allows for fast and reliable cross-chain operations that add value to the project. After all, not a single existing blockchain allows you to anonymously buy or sell large amounts of crypto without a panic inside the community.

The developers worked day and night to keep the protocol they created run like clockwork. After all, the REN network’s correct operation will reduce to a minimum not only the technology but also the emotional weight on users.

It means that the REN team is nearing Mainnet One’s launch with colossal support from crypto fans and large investors, not only within the market but also among financial institutions.

Although the REN exchange rate’s history doesn’t cause as much interest as other digital currencies, this data is still insufficient to predict future price changes. After all, the value of an asset in the market depends on what the asset itself does.

As we said, the primary mission of REN is to become the connecting layer of operations for all major blockchains. Therefore, we won’t see significant rate changes until the digital currency becomes mainstream and gets funding.

In any case, the peak of popularity of the Republic Protocol will come very soon. Hence, it’s only a matter of time before the value of REN is recognized not only by big players but also by hard-core cryptocurrency enthusiasts.

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