About Thorchain

Thorchain Coin Review: Mining Guide, Price & Analysis of Thorchain Cryptocurrency

Thorchain is a decentralized cross-chain liquidity network. Users can swap between assets across chains in a trustless and permissionless setting. Thorchain utilizes Threshold Signature Schemes to create a marketplace for liquidity. Bitcoin is still the first crypto in the market but since its development there are multiple altcoins that have emerged.

Additionally, Thorchain offers a very appealing value proposition. It provides users with an environment resistant to market manipulation. Users also get to enjoy on-chain price feeds. For this, Thorchain favors no specific asset or blockchain. Additionally, it can scale without compromising on security.

Further, liquidity providers ensure the market always has liquidity. This is the same as staking your coins. Liquidity providers enjoy earning rewards from swap fees. This gives them a passive income source in a non-custodial environment.

Thorchain contains no pegged or wrapped crypto assets. Additionally, Thorchain has no external sources for price feeds. It entirely depends on its continuous liquidity pool design to set prices. Moreover, Thorchain has arbitrage bots to trade and balance imbalance pools.

How Thorchain Works

Thorchain has several components that ensure it is decentralized and secure. These include BEPSwap, Asgardex, Midgard, and THORNodes.

The BEPSwap is a web-client that connects Thorchain specifically to Binance chain assets. However, this will not last long. The developers plan to replace it with Asgardex. Asgardex is a desktop client that provides a reference implementation. It can track the full life-cycle of a transaction and manages connections to Thorchain. Additionally, it is censorship-resistant. It adds a layer of privacy to the network.

Midgard is an API that allows users to view data. Additionally, it allows users to broadcast signed transactions to connected chains. Each client that connects to Midgard has to pass a security audit. This prevents hacking attacks and phishing.

On the other hand, THORNodes synchronize and run the network. THORNodes can be validators or simply participating nodes that sync the network.

The Bifrost protocol ensures everything remains connected. It runs on a 1-way pegged state. Each chain connected to Thorchain has a Bifrost module. It contains all the rules and guidelines for transactions. Additionally, it carries transaction details across chains.

Can Investors Mine Thorchain Coins?

The cryptocurrency that powers the Thorchain network is the Rune coin. However, it is not possible to mine this coin. This is because the network runs on the Proof of Stake consensus. Additionally, it runs on the Byzantine Fault Tolerant Tendermint consensus.

Both of these algorithms do not support mining. On Thorchain, the Tendermint engine manages block generation and consensus. However, there is a reward system. Users can get rewards for staking their coins to support liquidity on the platform.

Liquidity providers deposit their assets in liquidity pools and earn yield in return. They earn tokens in Rune and the pool’s connected assets. For example, if you deposit in a BTC/RUNE pool, you receive your rewards in BTC and RUNE.

Further, rewards depend on whether the block contains swap transactions. This ensures that the network sends yield where there is demand. The fees act as the proxy in this case.

However, assets in the Thorchain blockchain have free-floating market prices. Hence, liquidity providers may suffer impermanent losses.

The Team behind Thorchain

The team behind Thorchain is mostly pseudo-anonymous. They believe this is the best way to protect the project from centralization. There are no figureheads or personalities. The project is completely community managed.

However, there is still a little centralization in the Thorchain project. The team promises that they will uphold transparency in centralized sectors. This includes treasury, code, and research. In time, node operators will fund satellite development teams. This is a step towards complete decentralization.

Further, you can reach out to the team with any queries you may have. You can find them on Telegram, Twitter, and Discord. They are very engaging and promise to answer all your questions.

The RUNE Coin

This is the native coin of the Thorchain blockchain. It is usable in paying transaction fees and other activities. Hence, it powers this blockchain. It has many use cases in the Thorchain blockchain. These include liquidity, security, governance, and incentives.

RUNE is the base currency for all transactions in the blockchain. Users have to pool the RUNE coin alongside other crypto assets. Without RUNE, they would pool every other asset alongside other assets. This would dilute the liquidity on the blockchain.

Additionally, RUNE has purchasing power. Hence, users can use them in purchasing goods and services. As the value of assets on Thorchain goes up, so does the value of RUNE. Further, RUNE adds a layer of security to the network. This is because the coin is Sybil resistant.

Privacy and Security

Thorchain takes the security of users very seriously. This blockchain has excellent security features. Thorchain uses threshold signature schemes when generating new addresses and signing transactions. This provides the highest level of security without compromising the architecture.

Additionally, RUNE coins add a level of security to the blockchain. They use a variation of the Proof of Stake consensus called the Proof of Bond consensus. Here, users have to commit a bond of 1,000,000 RUNE to receive a voting slot. This bond ensures that users do not try to steal assets. If they do, the network deducts their bond.

Moreover, this is a blockchain project. Distributed nodes work together to keep the network secure. Furthermore, there is no central database to attack.

Our Take on Thorchain

Thorchain is one of the most decentralized blockchain projects in the market. The prospect of a completely decentralized liquidity platform is very appealing. Moreover, it is immune to market price manipulation. Transactions are peer to peer without a central institution controlling transactions.

Due to these features, RUNE sees excellent success in the markets. The liquidity that this blockchain offers is very high. Additionally, it has great security features. Further, it has high scalability. This means that this blockchain is still efficient even with a high volume of transactions.

Advantages

• Thorchain offers high liquidity of crypto assets.
• Thorchain is very secure and efficient.
• Thorchain involves speedy transactions.
• It has high scalability.

Disadvantages

• Liquidity providers may suffer impermanent losses due to price volatility.

How to Buy RUNE Coins

There are many perks to owning the RUNE coin. You get to enjoy smooth transactions on the Thorchain blockchain. Moreover, this is a great coin to have in your portfolio. Luckily, you can buy it from several exchanges. These include Binance, Bitfinex, FTX, VCC Exchange, and Hoo. The price of one RUNE coin stands at $1.03 at the time of writing this.

Further, RUNE holds the 86th rank in market cap share. That is with a market cap of $163,895,937.38. This shows that this coin has great potential in the markets. You may want to hold it and sell it at a later date. For this, you can use Atomic Wallet, Trust Wallet, Ledger, or Binance Chain Wallet.

Final Verdict

The RUNE coin has great potential in the market. It is in the top 100 coins in market cap share. It can break into the top 50 with more adoption of the Thorchain platform. Additionally, it can gain in value as other crypto-assets gain.

Still, it is impossible to tell whether this coin’s value will fall or rise in the markets. As it stands, it is holding its value and seems like a wise investment.