Review ThorChain

Review: THORchain

3.8
Pros
  • Using THORChain's interoperability technology, we can create strong solutions for blockchain applications that need cross-chain asset exchange and data and resource sharing, such as compatible smart contracts, multi-chain dApps, decentralised bridges, and more.
  • THORChain combines a number of strong, cutting-edge technologies to make a solution that is truly decentralised and works well.
  • THORChain allows any unprofitable asset to be swapped with liquidity pools built around it.
  • Everyone who takes part is rewarded.
Cons
  • Many people think that the fact that there is no information about THORChain's founder or development team is a red flag.
  • The THORChain protocol has a brief history. The THORChain concept was not conceived until 2018.

Business Score: 3.8/5

Branding

THORchain has always been silent in terms of branding and marketing. The undoxxed team has branded THORchain as a multi-chain cryptocurrency exchange and protocol that provides immutability and interoperability. In terms of funding and community, THORchain holds a strong spot among all other cryptocurrencies thanks to its strong disruptive features and projected improvements.

Team

THORChain has claimed that it has no CEO, founders, or directors, implying that the company has no management staff at all. This was a deliberate decision, as the founding team thought that anonymity was crucial to the project’s success. The DeFi community, on the other hand, has expressed some reservations about this deliberate effort. DeFi users are usually unhappy that they don’t know much about the main people who set up and run THORChain. But the team has been active in forums and amas and is always prompt on decisions and features around the project.

Road Map

The ThorChain mainnet was launched in 2021. They were able to deploy the BEPSwap beta, which replaced the previous RUNEVault application. Clearly, improving the mainet is a primary aim for 2022. The team is also interested in expanding BEPSwap to include other chains, as well as developing developer tools that allow validators to create bridges to other chains when requested by the community. Other plans for 2022 and beyond include the creation of the Flash Network, a layer-2 scaling network that will be connected to other lightning networks. The Flash Network’s goal is to overcome the problem of not being able to show that a receiver has received payments in a lightning to lightning swap. The price feeds from THORChain’s own liquidity pools will be used to power this Flash Network. The team is also looking forward to implementing certain interoperability features.

More action is promised under the plan. Where synthesisers have just recently been installed, cross-chain bridges are only the beginning. Additionally, once the Chaosnet is deemed stable, a multichain mainnet will be introduced. A few additional upcoming features are also mentioned, although without further specifics. ThorFi is the next milestone discussed. This will have the following features:

  • Lending
  • Assets that are made up of several components
  • Trading with a High Leverage

Technical 3.8/5

Product

Solving interoperability

Third-generation blockchains aim to improve interoperability and provide a more seamless and decentralized experience. THORChain supports multi-chain cryptocurrency exchange and provides immutability to meet the needs of traders and overcome the issues of blockchain interoperability. THORChain is a DeFi project that began on the Cosmos network before moving to its own mainnet in April 2021. This change is a huge step forward for THORChain’s regulators when it comes to making it easier to switch between different currencies.

The Decentralised Liquidity Network on Thorchain

THORChain is a protocol, but it’s also a whole ecosystem that’s meant to solve all the problems we’ve talked about with cryptocurrency exchanges so far. The developers of THORChain understand that by making the whole ecosystem chain-agnostic, it will be able to handle any current digital assets, including those that have yet to be developed. This is important because it shows that THORChain isn’t trying to compete with other exchanges and protocols. Instead, it wants to build a single decentralized network with a liquid core.

Because of its decentralized structure, THORChain is capable of tackling these problems without relying on other parties. This could eventually eliminate the need for third-party participation in the exchange ecosystem. Staking and bonding were used to incentivize the provision of liquidity and safety in the network. Although the concept of liquidity pools is not new, there are now just a few unused liquidity pools. And existing solutions like Uniswap and Bancor only enable single chains, making them less practical. The chain-agnostic approach of THORChain is new and different, and it could solve the liquidity problem in cryptocurrency markets by making it possible to trade any cryptocurrency for any other cryptocurrency without trust.

BEPSwap

THORChain’s initial user interface is BEPSwap. It lets users trade and stake BEP2 tokens, as well as receive staking incentives by supplying liquidity to the ecosystem. Traders can also keep an eye on fluctuating prices and serve as arbitrageurs, earning by trading tokens for the right price. The first stop on the route to Asgardex is BEPSwap. Bepswap.com provided this image. BEPSwap was launched in beta in September 2020 and has since expanded to several thousand users and a daily transaction volume of over $10 million. It’s still a small project, but it’s in beta, and it advises users against staking or adding large sums of liquidity. Still, with a bonded APY of almost 30%, it’s a more appealing option than lending, yield farming, or standard bank accounts.

Other sets of products

THORChain is working on a number of exciting projects. BEP-2 swaps will enable quick swaps of tokens like ONE, FTM, BNB, TOMO, ANKR, and many more for a tiny charge that will be passed down to RUNE holders who will handle the transactions through staking. Bitmax and Eterbase exchanges will incorporate staking directly into BEPSwap, allowing users to stake their assets straight from the exchange in exchange for fees and block rewards. Asgardex is THORChains Decentralized Exchange, which, like other DEXs maintained by other blockchain performance projects, is aimed at not only providing a safe, anonymous means to transfer funds but also demonstrating the Binance Chain’s speeds and smooth user experience. Users will be able to access Bitcoin, Ethereum, Binance Chain, and other cryptocurrencies through Asgardex. The Bifrost Protocol is a THORChains interoperability solution that will enable scalable, bi-directional bridges with any other chain, as well as the option of choosing between performance and security as a preference, similar to how privacy chains allow users to choose between the two depending on the context. A fantastic collection of items that work together to serve the entire ecosystem.

Crypto-Related

RUNE is THORChains’ native token, and it works as you’d expect from a blockchain performance and liquidity enterprise of this nature. Investors in RUNE can benefit from staking their tokens in the RuneVault and receiving more RUNE from a share of the emissions when the tokens are burned on each transaction performed by the network. By staking their tokens in the RuneVault and receiving more RUNE from a share of the emissions when the tokens are burned on each transaction performed by the network. By staking their tokens in the RuneVault and receiving more RUNE from the share of the emissions when the tokens are burned on each transaction performed by the network. It acts similarly to any other PoS (Proof of Stake) network token, so there’s not much else to say about it except to underline how nicely it’s incorporated into the network. Those who invest in RUNE will only gain as the network expands and draws additional partners and developers using the THORChain protocol, since it is a project strongly focused on blockchain performance and liquidity. Stakers have locked up almost 78% of the circulating supply, ensuring the network’s stability. Even though most of the value of other cryptocurrencies is based on speculation right now, RUNE’s token architecture is actually useful.

Security

Hacking is also a major source of grief for THORChain, which is hidden under such a great amount of glamour. Since it came out on Ethereum, the chain has had a lot of security problems, which makes people worry about how safe it is.

On April 11, THORChain tweeted about phishing attacks and told clients not to trust [DeTHOR] or other strange tokens in their wallets. This made people worry about the security of the chain. The CoinEx security team works on a solid security framework for CoinEx products and also keeps track of security incidents in the blockchain space. This helps customers understand the security of different projects from a specialized security point of view and reduces the risk of speculation. Since the inception of Chaosnet, the THORChain network has grown tremendously and incorporated several levels of protection. While no security assurance can be given, the methods mentioned in this article should give users confidence that the effect of any attack will be considerably minimized, and hackers will be more motivated to expose defects rather than attack the network. While the specifics of the network’s security measures may change, the network’s and its participants’ top objective remains security. Today, THORChain is more resistant to attacks and can respond quickly to conserve cash, making it ready for the next stage of development.

Some of the security measures the chain follows:

  • Bonded RUNE is always twice pooled due to incentives.
  • To protect the pooled capital, malicious nodes are sliced.
  • The system’s liquidity and security are intertwined.
  • A Threshold Signature Scheme safeguards assets when there is no trusted dealer.
  • The system is always in operation. Fault-tolerant byzantine

*Disclaimer* The project’s reviews are not financial advice. You are risking your own funds and you should do your own research on each individual investment. We only search for strong projects and are not looking for a get rich quick scheme.

*The review can contain referral links and is based on our internal guide that you can read here: Internal Review Guide*

Join our social channels for news and discussions on everything crypto-related. Want to discover more amazing projects? Check out the Reviews and Crypto World category. If you are new to crypto, visit the Education category and get started with your first project

We strive to educate, grow and help as a community with no borders. We support equality of genders, races, and colors and we want to touch the whole world.

Leave a Reply

Your email address will not be published.