What is renBTC digital currency? Decentralized form of bitcoin in the Ethereum network
The renBTC digital currency is a token based on the ERC-20 standard and part of the Ren Protocol project. And offers a decentralized form of bitcoin in the Ethereum network. Ren BTC digital currency is a unique token; Because its purpose is to create a token whose value depends on the value of the bitcoin but runs on the Ethereum network. The idea for this project is similar to the Bitcoin Rapid Project (wBTC), and they both pursue a common goal: to bring bitcoin to the Ethereum world. But what exactly is a RENBTC token, and how does it work? In this article, we will examine this digital currency. Stay with us.
What is renBTC digital currency, and how does it work?
Ren BTC Digital Currency is an ERC-20 token built on the Ethereum network and is Bitcoin-dependent. This means that each RENBTC token can always be bought or traded for the price of one bitcoin and, therefore, tends to keep its value close to the value of the bitcoin.
The renBTC digital currency token is generated on the Ren; The cryptocurrency is an open protocol that provides individuals with access to liquidity between blockchains and helps transfer assets of other blockchains to Ethereum Decentralized Applications (DApp).
Multiplying Ren BTC digital currency is a relatively simple process; Users first send their bitcoins to the RenVM virtual machine. This amount of bitcoins is locked in the Ethereum blockchain to guarantee storage, and the equivalent, the RENBTC token, is multiplied in the Ethereum. This process is a kind of inter-chain operation between Bitcoin and Ethereum blockchains.
Unlike other bitcoin-backed tokens, renBTC digital currency is not a Synthetix token and uses no special liquidity mechanism to maintain its value. Instead, the token benefits from direct back-up to maintain its value; This means that enough bitcoin is always stored to cover the circulation of Ren BTC digital currency.
Redemption of renBTC digital currency is as simple as multiplying it. For this purpose, the user must send his RENBTC token to the Ren virtual machine (paying the Ethereum network fee), and this machine will send the original bitcoin to the user’s address. In the process, returned renBTC tokens are destroyed by burning so that their number remains the same as the number of stored bitcoins.
In this way, the user’s bitcoin balance held by the system is released, and he can recover his BTC without any problems.
Who are the founders of renBTC digital currency?
Formerly known as the Republic Protocol (the company that developed the Ren ecosystem), Ren was founded by Taiyang Zhang, its current CEO.
Zhang is also a founding member of KeeperDAO and one of the founders of Virgil Capital, a digital currency trading company. He is an experienced developer and one of the early adopters of digital currencies.
Loong Wang, Ren’s current chief technology officer, is another team member. Wang was the lead developer of Neucode software and held the Academic Instructor position at the Australian National University.
The Ren team consists of about 30 people, most of whom are software developers and blockchain researchers.
What makes the RenBTC digital currency unique?
The main difference between Ren BTC digital currency and other Bitcoin Rapid tokens is their conversion fluid value. The Ren virtual machine does not store any bitcoins on a centralized platform but uses a network of decentralized nodes called Darknodes for this purpose.
In addition, the Ren virtual machine can be integrated directly into various decentralized applications using the specialized adapters provided by Ren. This means that the user can use Bitcoin directly (via renBTC digital currency) on decentralized exchanges (DEX) or lending platforms.
In other words, the RENBTC token makes it easier for users to participate in the Diffie world. In this way, the user can easily convert their bitcoin into Ren BTC digital currency and participate in the defense field in a few minutes, without the need to complete the KYC process.
It is also important to note that ECDSA’s private keys are hidden in the virtual machine, which helps to create a Trustless, Permissionless Bitcoin token in the Ethereum network.
What is the number of tokens in the circulation of renBTC digital currency?
As the Rennetc BTC digital currency is constantly minted and burned, the number of tokens in circulation varies according to market conditions. However, it should be noted that the number of RENBTC tokens in circulation is always equal to the number of bitcoins stored on this network.
For example, at the time of writing, Ren BTC has 13,700.93 units in circulation and a market value of $ 636,868 million.
How is renBTC digital currency protocol secured?
Ren BTC Digital Currency operates on the Ethereum network, one of today’s most secure blockchain networks. BTC RenC ERC-20 tokens are secured by the collective efforts of thousands of Ethereum miners working to maintain the integrity of the Ethereum blockchain and the tokens transferred on it.
In addition, the Ren virtual machine protocol uses a secure multidimensional computing system. That allows Dark Nodes to execute scripts without revealing input or output to others.
Dark Nodes must use 100,000 REN tokens as collateral. They also receive a fee to help power the RENBTC token network.
This protocol claims to be Byzantine Fault Tolerant. This means that even if the Dark Nodes are out of reach or cheat. The scripts continue to work to keep secrets.
Where to buy and store renBTC digital currency?
Users can always multiply their BTC digital currency using their bitcoins and the Ren virtual machine.
However, BTC Ren ERC-20 tokens can be obtained directly from popular. And well-known exchanges such as Binance, Gate.io, Curve Finance, Uniswap, One Inch ( 1inch), and… also bought. Of these exchanges, the largest volume of renBTC digital currency transactions is processed by Cro Finance.
On the other hand, secure and reputable wallets such as Ledger. Trust Wallet, MetaMask, and Binance Chain Wallet support Ren BTC digital currency storage and management.
RenBTC digital currency price history
As mentioned, Ren BTC’s digital currency is a bitcoin-dependent token. This means that each RENBTC token can always be bought or cashed for the price of one bitcoin.
Ren BTC digital currency was introduced in July 2020. At that time, bitcoin and RENBTC tokens were trading in the $ 9,660 price range. After that, Ren BTC continued the same upward trend as Bitcoin. On April 14, 2021, it reached its historical record of about $ 64,700.
Concluding remarks
This article introduced and reviewed the RenBTC token and how it works.
Today, the vast majority of existing platforms are built on Ethereum. Because of this, bitcoin network users are often unable to reap the benefits of decentralized finance. Although Bitcoin and Ethereum blockchain networks cannot communicate directly with each other. Rapid tokens such as RenBTC are a good solution to this problem.
