Ramazan Eles 
In the ever-evolving world of cryptocurrency, next-generation blockchain platforms are garnering significant attention, and Thorchain is one such platform that stands out. Investors are keen to better understand these innovative blockchains and the opportunities they present. Among the topics of interest is Rune Coin, with common questions like “What is Rune Coin, how can it be purchased, and what is the project behind it?” In this article, we’ll delve into Rune Coin and the Thorchain project that forms its foundation.
What is Thorchain?
Before answering the question, “What is Rune Coin?” it’s essential to understand Thorchain. So, what exactly is Thorchain?
THORChain is a platform that enables users to seamlessly swap cryptocurrencies across different blockchains, such as Bitcoin and Ethereum. This platform allows you to execute transactions quickly and securely, ensuring you retain full control over your assets when exchanging them across various blockchains.
Essentially, THORChain operates like a currency exchange bureau, but everything is entirely automated and decentralized. This means you don’t need any central authority or intermediary. You can trade any cryptocurrency for another at any time.
At the core of THORChain lies a cryptocurrency called RUNE. RUNE plays a crucial role in the functioning of the platform. For instance, when users want to perform transactions, they typically use RUNE to facilitate and secure these transactions.
The platform was financed through an initial decentralized offering (IDO) in 2019 and has since continued its development. THORChain’s goal is to provide more flexibility and accessibility in the crypto world, enabling everyone to easily utilize assets across different blockchains.
What is RUNE Coin?
RUNE Coin is the native token of the THORChain network and serves as a multi-purpose token that supports various functions within the network. It helps ensure the smooth operation of the THORChain network. RUNE is used in network governance, staking and bonding for validator nodes, and trading.
THORChain offers an innovative system that rewards users with RUNE when they add tokens to the liquidity pool. This allows token holders to earn fees collected from other users accessing the pool by staking their assets. Essentially, THORChain is a network of liquidity pools where users can easily swap different cryptocurrencies.
THORChain operates using the Tendermint protocol, which means the network is built on a consensus mechanism that provides Byzantine Fault Tolerance (BFT). The network uses a Proof of Stake (PoS) mechanism to ensure security and stability. As part of PoS, node operators stake RUNE to run the network and validate transactions. Token holders can delegate authority to these node operators (validators) and earn a portion of each block reward on the network.
To ensure the economic security of the network, node operators are required to bond RUNE. In liquidity pools, each asset is paired with RUNE to maximize liquidity and efficiency, capturing value for RUNE. This system ensures that RUNE plays a central role in the network and drives its value upward.
In conclusion, RUNE Coin is a critical asset that underpins the operation of the THORChain network, allowing users to securely and efficiently swap their assets across different blockchains.
What is the Thorchain Project?
THORChain is a platform that allows users to directly and securely swap their crypto assets across different blockchains like Bitcoin and Ethereum. The project was launched in 2018 to provide a solution for crypto users to transfer assets without relying on centralized exchanges.
Centralized exchanges allow users to trade crypto assets with one another, but they do not give users control over their assets and carry security risks. THORChain functions as a decentralized exchange (DEX), giving users full control over their assets and enabling them to trade directly with one another.
One of the biggest challenges DEXs face is providing sufficient liquidity. Without enough liquidity, users may not be able to execute their desired trades or may suffer from slippage, causing them to lose value in transactions. THORChain aims to solve this problem with a mechanism called Continuous Liquidity Pools (CLPs). CLPs allow users to access liquidity at all times without needing to find a buyer or seller. These pools enable users to provide liquidity by depositing their assets into the pool and earning a share of the transaction fees in return.
In summary, THORChain offers a solution for the secure and efficient exchange of crypto assets across different blockchains. With Continuous Liquidity Pools, users can swap assets at any time without liquidity issues, while maintaining control of their assets in a decentralized environment.
Who Founded Thorchain?
Thorchain was established in 2018 by an anonymous team of developers during a Binance Hackathon. The project involves around 20 self-organizing developers, with much of THORChain’s resources being created by its community.