Blog Crypto Ren Coin Review: Will It Take Off In 2022?

Ren Coin Review: Will It Take Off In 2022?

date February 7, 2022 time 5 min read 1021 views

DeFi is an area of crypto that we’ve covered several times in the past. There’s no doubt that it’s a major component of the crypto world, but where does ren coin fit in? And why was there so much excitement about it at the time of its launch? And is the excitement justified?

Before we proceed, here’s a brief look into DeFi for those unfamiliar with it. Decentralized finance (DeFi) is an emerging financial technology based on secure distributed ledgers, similar to cryptocurrency. DeFi is an umbrella term for peer-to-peer financial services on public blockchains, primarily Ethereum.

DeFi expands on the premise of digital money by creating an entire digital economy without the associated costs of physical infrastructures and control by centralized authorities, like banks and other financial service providers.

With that in mind, let’s take a closer look at Ren.

Ren protocol

Ren is an open protocol built to provide easy interoperability and liquidity between different blockchains, allowing anonymous over-the-counter (OTC) trades. It runs on a network of dark nodes ensuring complete privacy between exchanges and makes DeFi more accessible by improving liquidity between exchanges.

Ren aims to improve the interoperability between blockchains, but will it live up to its promise? (Source: Market Realist)

The network was launched in 2017 as The Republic Protocol by Taiyang Zhang and Loong Wang to solve the middlemen issue, provide users with confidential and permissionless transfers, and find a way for investors to purchase large amounts of cryptocurrency without disrupting markets. 

They discovered the lack of interoperability between blockchains and tackled it with their protocol update in 2019.

Initially, it was built as a decentralized dark pool for hiding already executed OTC orders by investors, known as whales. Ren helps prevent market disruption when a program like a whale alert notifies the public of large transactions. The idea was to reduce panic among cryptocurrency traders, stabilizing price volatility by speculative traders. Ren later changed direction to focus more on blockchain interoperability.

Role of dark nodes in the DeFi network

Ren allows for the decentralized and trustless exchange of cryptocurrency assets across blockchains using its central platform, the Ren Virtual Machine (RenVM). The RenVM functions by using a network of dark nodes providing the computing power needed to identify and process cross-chain cryptocurrency orders.

These dark nodes use the Shamir-Secret-Sharing algorithm to divide an order into smaller bits and distribute them amongst the nodes until the transaction is carried out. Two smart contracts, the Judge and the Registrar are integrated within the platform to verify transactions through zero-knowledge-proofs and inhibit the reconstruction of these bits.

Simply put, RenVM accepts bitcoin and produces its equivalent Ethereum token known as RenBTC. It can be swapped back and forth between other cryptocurrencies across blockchains, with its value still intact. This is similar to how stablecoins like USDT that’s pegged against the value of the US Dollar work.

How ren coin is used

The ren coin is used to remit bonds to the registrar for maintaining the stability and decentralization of the RenVM and settle order trading fees for all investment orders initiated in the RenVM.

Like any other cryptocurrency, ren coin can also function as a store of value against future appreciation of the coin’s price. Since ren coin is an ERC-20 token, you can store it on any wallet that supports Ethereum. 

You can store ren coin in crypto wallets like My Ether Wallet, Atomic Wallet, Trust Wallet, Ledger, Trezor, and more. Some people leave their cryptocurrency in exchanges. We generally do not recommend that due to the risks involved. Hardware wallets are the safest way to store your cryptocurrency assets.

Ren coin is a freely-tradeable token and can be found on major exchanges like Binance and Huobi Global with good liquidity.

Ren coin price history

Early cryptocurrency investors bought 56% of ren coin’s total supply at $0.05 after raising about $34 million during its private and public ICO in 2018. The price moved to $0.08 before dropping to $0.03 in the space of three months. It later reached a high price of $0.13 in May 2018. 

Ren coin price went as low as $0.015 within one year before hitting just over $0.14 during bitcoin’s sudden boom in August 2019. It eventually reached a high of $0.57 in 2020 before reaching its all-time high of $1.73 in February 2021.

The token saw a healthy price movement between $0.60 and $1.2 until December 2021, where the price has gradually declined. 

Ren’s coin price has followed the general trend of the crypto markets. (Source: CoinMarketCap)

Today, ren coin price is $0.37. With a 24-hour trading volume of over $26.8 million on Coinmarketcap and a market cap of $337 million, ren coin currently ranks 158 on the most prominent cryptocurrencies ranking by market cap.

Like other tokens, price changes mostly mirror news about its development and partnerships. For example, ren coin saw a significant increase in price after releasing RenVM subzero in 2020 and announcing its polygon bridge launch in 2021.

The last two years have been the best for ren coin, and this might be an indicator of much better performance in the nearest future. The ren coin prediction by analysts may be a positive one.

How Ren connects Bitcoin to DeFi

Ren’s primary goal is to access inter-blockchain operability by allowing trustless inter-chain trades, bridging the gap between multiple, incompatible blockchains. It achieved this by bringing tokens from networks without smart contracts to networks with smart contracts through RenVM.

Ren has helped to bridge the gap between bitcoin and other cryptos using DeFi protocols. (Source: Unsplash) 

Using bitcoin for decentralized financial purposes has been a near-impossible feat. However, with Ren’s interoperability, you can now move digital assets like bitcoin between the Bitcoin and Ethereum blockchains. Ren helps you take advantage of DeFi opportunities like yield farming to earn interest on your digital assets by lending your assets to others or locking them up in liquidity pools.

RenVM achieves interoperability and removes the barriers preventing different blockchains from interacting with each other. It serves as a universal field where various blockchains’ native formats are converted into the format needed by its destination chain to function.

For example, RenVM converts btc from its native format and converts it to Renbtc, an ERC-20 Ethereum token standard. And vice versa. 

Securing the value of your digital assets

As explained earlier, your digital assets – bitcoins in this case – retain their original value because the exchange between cryptocurrency and blockchain formats remains at a 1:1 ratio to ensure the same value always backs up your asset.

Hence, your BTC holds the same value when converted to RenBTC by the RenVM. There is no chance or instance of loss recorded during the process.

Ren has created a protocol that makes cross-chain transactions fast, trustless, and decentralized, making it a worthwhile project. Its strategy to make the dark node operators the recipients of all the fees generated through facilitating exchanges attracts miners.

This strategy will increase the number of users functioning in the Ren ecosystem making the RenVM more scalable and secure. An increased number of dark node operators will influence its market cap and price over time.

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George Schooling

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