RenVM is a protocol of interaction for decentralized finances (DEFI), allowing anyone and anywhere to move digital assets between blocks.
What kind of problem solves Renvm?
RenVM provides interaction with DEFI, which allows the use of assets such as BTC, ZEC and others, in Ethereum (DEFI) ecosystem and other smart contract platforms.
The easiest way to imagine Renvm is to first think about it as a repository of your digital assets when they move between blockchas.
You provide BTC RenVM; He holds this BTC, and then coins this BTC as ERC-20 (also known as RenBTC) on Ethereum with a 1: 1 ratio to ensure that the same amount of BTC always supports your RenBTC. This approach is applicable to almost any digital asset and smart contract platform. For example, RenVM can store its own dogcoin and coagulate it in the Polkadot blockcha.
It takes its own blockchain format and converts it to the format necessary for its target chain (for example, Renvm accepts BTC in its original form and converts it to ERC-20, Ethereum token standards).
Token Utility
Ren Token is a native ren-protocol token and are used as a connection to start a node that feeds Renvm.
Although anyone can run a node to prevent fake identification data, 100,000 reinnets are required to register and run the node. This balance also does not allow attackers to run an unlimited number of nodes and overload the network by incorrectly working nodes.
Every time Renvm moves an asset from one blockchain to another, a small commission is required. Nodes (and those who are managed) receive these remuneration (in BTC, ETH, ZEC and T. D.) For help in the work of Renvm.
RenBtc - This is a binding ETHEREUM ERC-20 to the Bitkin, created by the REN protocol.
RenBTC tokens are generated via Renvm, and RenBTC is a 1: 1 binding to bitkins (BTC), which means that users can exchange their RenBTC on BTC at any time through RenBridge .
Renzec - This binding ERC-20 to ZCASH, created by the Ren Protocol protocol.
Renzec tokens are generated via RenVM, and Renzec is a 1: 1 binding to ZCASH (ZEC), which means that users can exchange their Renzec at any time through RenBridge.
Well, I understand what RenVM is, but how these cross-chain transaction work?
This is a binding direct offer. RenBTC is not synthetic, it does not rely on the liquidation mechanism, and this is not the price of bitcoins on Ethereum. This is an unambiguous representation of bitcoins on Ethereum, which can be exchanged for BTC at any time and in any amount.
BTC Chacking on Ethereum
To minted RenBTC, you just need to send BTC to the Bitcoin address:
- Bob wants to use his BTC in DEFI, so it finds an application in which Renvm is integrated, and when the request appears, the application will generate a unique bitcoine address (this is a bitcone script address that can be used only one of the secret ECDSA RenVM. closed keys).
- Bob sends 1 Bitcoin to the specified address and waits for 6 confirmations in the Bitcoin network. After the 6 confirmations have passed, Renvm immediately creates a chancenet signature using one of its secret ECDSA key keys, and Bob takes this signature and uses it for 1 RenBTC (minus Renvm Commission) to the Web3 wallet assigned by Bean (for example, Metamask ). *Note: These steps are usually done automatically user interface and do not require explicit actions from Bob.
- Now Bob can take this RenBTC and use it in any DEFI application that he likes. He can take loans, trade on Uniswap, margin trading, provide DAI and get percentages from his BTC. It is noteworthy that this RenBTC is completely interchangeable and can be divided into any number and indistinguishable from RenBTC created by others.
BTC redemption from Ethereum
Buy up just as simply how to minimize and x RenBTC can always be exchanged for x BTC.
When the bob is ready to switch to BTC again, it burns his renBTC to redeem the same amount of real BTC:
- Bob wants to return his real BTC, so he finds an application in which RenVM is integrated, and when the user interface requests it, Bob provides its bitkin-address (destination of the BTC redefined). After granting it sends it as part of the transaction in Ethereum.
- Bob pays a small amount per transaction in Ethereum, expects a short time to confirm Ethereum. Then Renvm sees that RenBTC burned, and releases the appropriate amount of BTC to its specified bitcone address (minus RenVM Commission).
- Now Bob has real Bitcoins in the wallet, and he can do everything with them that he is pleased with.
What's next?
In the coming RenVM quarters will expand the number of supported blocks and raise the level of decentralization to ensure maximum network reliability. More information for developers on site project
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