The blockchain technology is expected to transform the shape of the global financial system. A lot of crypto enthusiasts believe cryptocurrencies are going to take over fiat currencies soon especially with the rise of digitization. While there may or may not be substance to the claims, blockchain technology is far from perfect for becoming the major mode of payment. One of the major issues – among many – is the lack of interoperability.
Blockchain is essentially a digitized version of an accounting ledger which runs through code. But each blockchain is a universe of its own and they cannot interact with each. This pose as a major problem because to create a digitized version of the global payment ecosystem, it is imperative that specialized and general blockchains operate in tandem. Many projects have been launched to solve the problem of interoperability – or lack thereof. One of the major projects is Ren.
What is Ren?
Ren is essentially a software based on the blockchain technology which facilitates the transfer of digital assets across blockchains. For instance, to transfer BTC into ETH users have to lock the required amount in BTC through smart contracts and they will receive the equivalent in ETH. This ensures that users operating on a specific blockchain can also benefit from the ecosystems of other blockchains and indulge in their offerings. To unlock the funds back, users require to hold REN cryptocurrency which is the native token of the blockchain software.
Ren utilizes a virtual machine which is basically an ecosystem of distributed physical computers which performs tasks without revealing any information. The custom virtual machine runs by deploying smart contracts in the Ren ecosystem. The VM utilizes a structure similar to that of privacy coins to ensure complete anonymity and privacy.
How does the network work?
The computers running the network are known as DarkNodes. Anyone can operate as a DarkNode by locking a certain amount of Ren in smart contracts. As reward for deploying their computational power, DarkNodes earn Ren tokens. The transfer of digital assets occurs through RenBridges. The Ren virtual machine creates a replica of the asset required which represents the asset.
Currently, the network is able to transfer Bitcoin, Bitcoin Cash, and Zcash to Ethereum but compatibility for other cryptocurrencies can be added soon. At the time of writing, Ren operates at a price level of $0.72. The cryptocurrency established an all-time high of $1.83 during the 2021 bull run. Currently, the market has been overtaken by bearish pressures.