THORChainis a decentralized cross-chain automated market maker (AMM) exchange that allows users to trade spot tokens across blockchains. It enables traders to swap tokens across various Layer 1 blockchains without taking on counter party or custody risk.
It is a decentralised cross-chain liquidity protocol based on Tendermint & Cosmos-SDK and utilising Threshold Signature Schemes (TSS). It doesn't peg or wrap assets, it merely determine show to move them in response to user-actions.
THORChain's key objective is to be resistant to centralisation and capture whilst facilitating cross-chain liquidity. THORChain solely secures the assets in its vaults, and has economic guarantees that those assets are safe.
According to a THORChain official representative, the platform has no ceo, founder, or directors. Instead, Gitlab to organize to arrange the platform’s future development. Further more, people currently functioning on the project remain mainly anonymous. Again, a THORChain official argues that this is be to “defend the project and make sure that it can decentralize.”
Thorchain started as a small project at the Binance hackathon in 2018. They declared their first go-to-market product – BEPSwap – in July 2019. the main goal of BEPSwap was to enable BEP2 asset swaps and was limited to BinanceChain.
The ido resulted in $1.5M raised that was sufficient to enable further development of the project. The team continuing their work on the protocol which resulted within the restricted mainnet release, referred to as multi-chain chaos network or MCCN, in April2021.
Major reasons -
One-Way State Pegs
THORChain’s nodes connect to varied chains through one-way state pegs by creating addresses across these chains, that are controlled by the THORChain nodes. THORChain nodes use advanced multi-party computation (MPC) technologies like distributed key generation (DKG) and Threshold Signature Schemes (TSS) to ensure that no single THORChain node has control over the users’ assets.
When a node sees a dealings on a connected network it records this in what is called a "witness transaction". A witness transaction is basically a message from a node saying "this is what I saw happen". so it would be"I saw somebody send one BTC into THORChain". Nodes are all sending witness transactions into the system all the time.
The network needs to process them and choose that are correct. Nodes could make mistakes or disagree regarding what's happening in the external networks. Inorder to reach agreement about a transaction ID, the network looks at all the witness transactions that relate to it. When the network sees sixty seven of nodes agree on a transaction it's approved and considered correct.
Continuous Liquidity Pools (CLPs)
THORChain keeps pools of assets. Pools contain an external assetand rune. This suggests that all external assets are linked via rune. This makes it possible for the network to understand the price of any external to know. And it makes it possible for users to move directly from one external plus to a different. For instance from bitcoins to ether, or binance coin to monero.
●Max supply of 500 million rune tokens
●44.1% for protocol reserves (paying node operators andliquidity providers)
●5.2% to early seed investors
●10% to support the team building THORChain
●10.4% to the community
●10.5 to operational reserve for staff incentives
●19.8% for circulating supply.
News and Events
Synthetic asset trading launch
Tumbled in digital-asset markets
After the long-awaited multi-chain chaos network release, the Thorchain team is that specialize in growing the Thorchain ecosystem while more the system works as expected. We should see that specialize in applications and wallets integration with Thorchainin the future. Thorchain clearly looks like an interesting protocol and a missing piece in the defi ecosystem that may allow people to swap between native assets without using centralized exchanges.