This article will review the Ren protocol crypto. A protocol built on the Polkadot ecosystem project, aiming to be an interoperable engine that brings Bitcoin and other cryptocurrencies into other blockchain networks such as Ethereum.
Looking at Coinmarketcap rankings, the REN token is at #91, having a market cap of over 1 billion dollars. The price at the time of writing is $1.11, and the total circulating supply has reached 100%.
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- 1 What is Ren?
- 2 Ren protocol polka dot
- 3 How does Ren work?
- 4 Ren protocol founder
- 5 Why Ren is unique?
- 6 Ren protocol dark mode
- 7 Ren protocol token
- 8 Ren protocol wallet
- 9 Ren protocol investors
- 10 Ren protocol staking
- 11 Ren protocol competitors
- 12 Is Ren protocol a good investment?
- 13 Ren protocol price prediction
- 14 Final Thought
What is Ren?
Ren is an open protocol that allows the transfer of cryptocurrencies between blockchains. Ren aims to bring popular assets such as bitcoin and Zcash to the blockchain including Ethereum. So that these assets participate in a decentralized multi-chain financial ecosystem.
The core product is RenVM (virtual machine) focuses on bringing interoperability to decentralized finance (Defi). Ren launch in 2017 headquarter in Singapore.
The Ren Protocol (formerly Republic Protocol) creation to provide interoperability by allowing people to transfer cryptocurrencies across multiple blockchains.
It allows anyone to lock cryptocurrencies like Bitcoin (BTC), Bitcoin Cash (BCH), and Zcash (ZEC) into Ren software and Print ERC-20 equivalent tokens, Become RenBTC, RenBCH, and RenZEC into 1:1 ratio on Ethereum
ERC-20 coins can now to uses in Defi products for various functions. Like Trading, Portfolio management, the original assets remain locked in the Ren software and can be unlocked at any time by paying a fee.
Ren protocol polka dot
Ren is a Dapp protocol which is one of the projects built in collaboration with the Acala network. The BTC gateway is built-in by RenVM while minting and burning renBTC on the Acala network uses the gateway.
Citing to Medium, the collaboration between Rem and Events has taken place with the aim of making high performance and liquidity easy for people to access with Defi experiences for the broader web3 community is a goal both teams share.
The collaboration gives new hope in the BTC use case, which makes it possible to use renBTC as collateral for credits for USD. In addition, renBTC can be traded on a Decentralized Exchange with other cryptocurrencies, such as ACA, DOT, LDOT, XBTC or aUSD. Furthermore, It is also possible to participate in Polkadot Proof-of-Stake and earn DOT rewards.
How does Ren work?
The Ren protocol uses a virtual machine called RenVM. The protocol has the support of a decentralized network called Darknodes. The machines from these Darknodes will empower the compute power and storage space on the virtual machines and get rewarded.
RenVM will print and burn renBTC on the Acala network, where each renBTC is supported by an equivalent amount of BTC and will be stored in RenVM.
To build privacy, the Ren protocol uses Shamir Secret Sharing technology, Secure Multiparty Computation (sMPC), and Byzantine Fault Tolerance (BFT).
Shamir Secret Sharing
This is a cryptographic concept that shares confidential data to be held by several people with different users. This aims to keep the private key safe or hidden in the RenVM network, even Darknode will keep it safe.
Secure Multiparty Computation (sMPC)
It is an algorithm that allows developer code to run without having to reveal input and output.
Byzantine Fault Tolerance (BFT)
This is an algorithm that will indicate that the Ren network is active even though some nodes are down. RenVM uses a consensus mechanism to be able to execute high-speed transactions.
Ren protocol founder
Ren was founded in 2017 by software developers Taiyang Zhang and Loong Wan, Prior to republic protocol. Taiyang Zhang also co-founded crypto quantitative trading firm Virgil Capital and software developer start-up Neucode. In 2019 Zhang went on to co-found the mining pool KeeperDao. Formerly the name is Republic protocol.
The private sale of REn tokens carry out in January 2018, Followed by the next public sale of REN tokens. Then in 2019, Republic protocol changed its name to REN.
Why Ren is unique?
The Ren protocol uses advanced algorithms and cryptography to allow the movement of certain crypto assets between existing blockchains. However, it doesn’t require complicated middle steps like using a “wrapped” version of the token.
The development team will still continue to innovate by supporting more coins and blockchains in the future to connect the entire crypto space.
Ren protocol dark mode
Dark Node can be said to be a decentralized network that supports RenVM. Darknode contributed to provide their computing power and storage space in exchange for a fee.
Darknode becomes physical machines that power RenVM, where each machine contributes CPU time to compute power and disk space for storage. Its runs a virtual machine to hide programs running on RenVM.
The Darknodes network is a permissionless decentralized network. Function to prevent identity fraud. Running Darknode requires 100,000 REN tokens to register and run Darknode. Besides requiring 100,000 REN, Daknode also requires a fast and stable internet connection.
Ren protocol token
Token Ren has a maximum supply of 1,000,000,000 (1 billion). REN is an ERC-20 token which is the standard Ethereum token. In the 2018 presale, the team allocated 60.2% to public investors.
Ren’s reserve fund initially allocation 19.9% of the total supply. While another 9.9% allocation internally to its advisors, team, and founders.
The team’s token is valid for a two-year lock-in period, with a six-month lockout for allocation to advisors.
The REN token has two functions. First, it is to pay for trading fees in the Ren Virtual Machine (RenVM) central cross-chain platform. Second, to pay bonds to the Registrar, which is a smart contract that regulates Darknodes in charge of calculating the amount of power needed to identify and process transactions.
Ren protocol wallet
REN is an Ethereum-based ERC-20 token, to store REN in several recommended wallets such as Truswallet, Ledger, Trezor, Atomic wallet, Myetherwallet, online exchange wallets such as Binance, or Kucoin.
Of all these types of wallets, the safest is to use Ledger or Trezor hardware wallets because they store offline. You can store REN in an online wallet provided by the exchange, but the security level is low because it is vulnerable to hacker attacks,
Ren protocol investors
Based on data from Crunchbase, REN managed to raise more than $34 million in two rounds of Initial Coin Offering. The last one was on Feb 22, 2018, with recent investors from Polychain and FBG Capital, and Kenetic Capital.
But REN’s main investor is crypto giant Huobi. It is a global exchange that is becoming one of the leading exchanges of cryptocurrencies.
Ren protocol staking
The use case for REN Cryptocurrency is as a bond to operate Darknode. although people also buy Ren coin for speculative investment, Darknode can be set up with the digital ocean, Amazon Web Service, and Google Cloud.
Many Defi investors have leveraged RenVM to move their cryptocurrencies into Defi apps like MyEtherWallet, KeeperDao, and Curve Finance where they can earn from crypto they shouldn’t be using.
The Defi project integrates RenVM to take advantage of cross-chain liquidity, fast transfers, and cross-chain OTC trading.
Ren protocol competitors
REN vs WBTC
RenBTC may sound similar to Wrapped Bitcoin (WBTC), which also mints and burns ERC-20 equivalent tokens. However, the two have major differences.
- First, for WBTC, the BTC tokens are held by BitGo, a centralized custodian that holds the keys to the Bitcoin wallet. Therefore, this becomes the focal point of failure.
- REN is native to the decentralized Darknodes network. In other words, the process is completely run by code so it can’t choose to deny certain requests. This results in the RenVM network being untrustworthy. This means that no central authority (like the government) can stop you from printing or exchanging tokens.
On the other hand, with WBTC, every user has to trust that BitGo will store their keys securely and fulfill their every request. Technically, BitGo can deny user requests to redeem their tokens.
Is Ren protocol a good investment?
Looking at the price history of the REN token, in 2021 it will experience high price volatility. Even prices jumped hundreds of percent quickly. This means that REN begins to increase its trading volume which causes very high price fluctuations.
‘The growth of REN’s investors also seems to have increased, this allows REN to become one of the Dapp projects in the Polkadot ecosystem that has a large audience. Even in terms of market capitalization, REN at the time of writing is below Kusuma, REN market cap is more than 1 billion dollars.
Ren protocol price prediction
Several forecasting sites predict that the REN price in 2021 will still change by the pandemic. Although the volatility is quite high, a prediction that the price will only fall in a matter of cents. Here are some REN price predictions for 2021-2025.
Cryptonewsz predicts REN token in 2021 if bears bring the price may drop by 20 cents, but if bulls sentiment dominates the price will go to $1.4. 2022 was a good year to hit the price towards $2.2023, confidence is building up and taking the price away to the $3 price level. 2024 remains optimistic and market growth could take REN to the $4 price level. 2025 is still optimistic that adoption will increase bringing the REN to the $5 price level.
Wallet investor prediction
Wallet Investor gives REN position one of the assets that gives good hope for the future. He predicts the price will rise to $1,614 in 2022. According to technical analysis with all data, in 2026 the price of REN can reach $3,946.
Digitalcoin price prediction
Digitalcoinprice positions REN to be a crypto asset whose value is increasing from year to year. 2021 market sentiment may bring REN $1.71, 2022 market confidence can carry away to $2. The 2023 success of REN will take it away to $2.29. 2024, increased adoption takes it away to the $2.79 price level. 2025 the price is up again at $3.53.
2026 the rising chart took the REN price to the $3.96 price level. 2027 will be a meaningful year to take away to the $4.28 price level. 2028 market push causes the price to go to $5.06.
CoinQuora is very optimistic that the 2021 REN price will surpass the $1.83 price level. 2022 data analysis price will go to $4.5. in the half year, and $3 in the end year. 2023 based on the 200 MA the price may go to the $7 price level. 2024 will be the best year to bring the price to $10. 2025 increased adoption will take prices going to $15.
REN is one of the crypto assets that will increase in 2021. However, the adoption of REN may change over time. The most powerful competitor is WBTC which is also positioning itself in crypto assets.
At the current price of $1.2 REN investment may be quite attractive for crypto investors, and more this protocol has investors’ support giving hope for the future.
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