What is THORChain(RUNE)?

THORChain functions as a decentralized liquidity protocol enabling convenient and custody-free cryptocurrency asset exchanges across various networks. Users can swap assets seamlessly on THORChain without relying on order books, as the protocol maintains market prices using pooled asset ratios, a concept known as an automated market maker.

The platform's native token is RUNE, which serves multiple purposes within the THORChain ecosystem. RUNE functions as the primary currency for transactions and activities within the platform. Additionally, it plays a vital role in platform governance and security through THORChain's mechanisms to prevent Sybil attacks. To participate in the rotating consensus process, THORChain nodes are required to commit a minimum of 1 million 300k RUNE.

Who are the founders of THORChain?

As per an official representative of THORChain, the platform's organizational structure differs from traditional setups. THORChain operates without a CEO, founder, or directors overseeing its development. Instead, the advancement of the protocol is managed through GitLab, a web-based platform for version control and collaborative software development.

In this unique structure, nodes within the THORChain network hold the ultimate authority to determine which codebase is implemented. This decentralized decision-making process highlights the platform's commitment to a distributed and community-driven approach to protocol development.

What makes THORChain unique?

THORChain employs a unique approach to address the issue of "impermanent losses," which are temporary losses that liquidity providers can encounter while participating in liquidity pools. To counter this, the platform utilizes a slip-based fee mechanism that helps maintain liquidity in the required areas.

THORChain's design incorporates a combination of innovative technologies such as one-way state pegs, a state machine, the Bifröst Signer Module, and a threshold signature scheme (TSS) protocol. These technologies work in the background to facilitate cross-chain token swaps without the need for permission, making the platform user-friendly even for less experienced traders.

Unlike profit-driven protocols, THORChain is not focused on generating profits. All fees generated by the protocol are directly distributed to participants, including node operators and liquidity providers. Notably, the protocol does not allocate any fees to the development team. Instead, the team's motivation comes from holding RUNE tokens, just like any other participant in the ecosystem.

Currently, the RUNE token is accessible on various blockchains, including Binance Chain (as a BEP-2 token) and Ethereum (as an ERC-20 token). However, there are plans to discontinue support for these versions in favor of the native RUNE token.

Explain the network security of THORChain.

THORChain's foundation is constructed using the Cosmos SDK framework and operates on the Tendermint consensus mechanism. This setup offers protection against attacks through an innovative Byzantine Fault Tolerance (BFT) proof-of-stake (PoS) system. Within this system, a considerable number of validators collaborate to suggest and confirm blocks of transactions, enhancing security and reliability.

Moreover, THORChain's smart contracts have undergone comprehensive security assessments by multiple independent third-party security firms. Notably, a thorough audit conducted by Certik, a prominent security firm, detected no vulnerabilities within the smart contracts. These security measures further strengthen THORChain's credibility and trustworthiness within the cryptocurrency ecosystem.

What are the recent developments of THORChain?

The recent movements in the cryptocurrency market have been intriguing, with THORChain (RUNE) experiencing a prolonged downtrend. Linda Trading has conducted an analysis suggesting a potential reversal of this trend. The market bottom has been tested significantly, indicating the emergence of bullish potential. Concurrently, Bitcoin (BTC) is undergoing a logical correction and is expected to test a strong support area. These patterns are common in the volatile cryptocurrency market, and experienced traders often use them to inform their decisions.

A notable observation is the rebound from the 0.777 mark, which many consider the market's bottom. This rebound, coupled with Bitcoin's growth, is creating a bullish reaction. The formation of a breakout from the global trend resistance is in progress, with the price positioned between local resistance at 1.110 and support at 1.003. This suggests a potential local consolidation followed by a retest of the upper boundary and a breakout, leading to possible price growth.

For traders relying on moving averages, the MA-50 is currently acting as support, while the MA-200 acts as resistance. The significant range between these moving averages provides room for medium-term strategies.

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