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What Is THORChain Digital Currency? Introducing The RUNE Token

The THORChain digital currency has grown by more than 1,400 percent since last year. This digital currency has two tokens called Rune, one implemented on the binance chain network and the other on the Ethereum network.

THORChain Digital Currency acts as an inter-blockchain network. Since the existence of such a network for communication between different blockchains is a basic need in the field of digital currencies, it seems that this cryptography has a good future. If you want to know more about THORChain, be sure to read this article.

The rune token implemented on the Ethereum network is very new and has just entered the digital currency market in 2021.

What is THORChain digital currency?

THORChain is a cross-chain, Permissionless liquidity network that enables the rapid exchange of digital currencies. THORChain Digital Currency creates a communication contract that allows different blockchains to communicate securely. There is a liquidity pool in THORChain Digital Currency where digital currencies are stuck.

How does THORChain digital currency work?

Let us first consider what problems Turchin solves.

Digital currency prices fluctuate

Digital currency fluctuations are attractive to investors. But it is also a factor that prevents the widespread use of digital currencies in life.

Lack of liquidity

Lack of liquidity can easily lead to large fluctuations in prices.

Today, decentralized exchange (DEX) exchanges mainly deal with token transactions in only one blockchain network and not several networks.

Now let’s see how THORChain wants to solve these problems. To solve the above problems, THORChain digital currency created an ecosystem of the following components:

THORCHAIN : A fast decentralized liquidity protocol built on the first layer.

YGGDRASIL PROTOCOL : A secure cross-chain bridge for THORChain.

FLASH NETWORK : A second layer network created to exchange digital currencies between intermediate networks. There are liquidity hubs in Layer 2.

BIFRÖST Protocol : A cross-chain protocol for the THORChain digital currency.

ASGARDEX : A fast and secure liquidity interface set up for THORChain.

IRSIR PROTOCOL : A set of management protocols for THORChain.

 What is a RUNE token ?

Torchin Digital Currency

The RUNE token is the main token within the Turchin digital currency platform. In the THORChain digital currency ecosystem, the RUNE token acts as a functional token. Thigh tokens are used for exchanges, payment of sticking fees in the management mechanism, and rewards for creditors.

The RUNE token is defined on the Binance blockchain and is a BEP2 standard . This token was launched in 2019. In 2021, the THORChain team designed another token of the same name, RUNE, on the Ethereum network under the ERC-20 standard.

How to extract RUNE token?

The RUNE token cannot be extracted like Bitcoin and Ethereum. But you can be a validator or RUNE token in the THORChain network and receive the token as a reward.

THORChain digital currency wallets

Because the RUNE token is available on both Binance and Ethereum networks, tokens that are BEP-2 standard on the Binance network can be held in the Walt Trust wallet, and tokens that are under the ERC-20 standard can be stored on wallets. Supporting this standard, such as Metamsk wallet, saved.

Rune token status

China Tour solutions such as ion swaps (Uniswap) or is Shapeshift. The advantage of China Tour Network is that it is completely decentralized and allows users to exchange digital currencies belonging to different networks on it. THORChain’s other competitors, Kyber and IDEX, also have this advantage; Of course, they only support ERC-20 standard tokens.

What is the use of the RUNE token?

Torchin Digital Currency

The RUNE token is used in all THORChain digital currency pools to generate liquidity.

Validators in the THORChain network use the RUNE token to be part of the validator suite. These validators or blockchain providers are responsible for verifying transactions and creating blocks within the Turchine digital currency network.

The RUNE token is used to pay for transactions within the THORChain network.

The RUNE token is used when using THORChain services to pay for trading costs, communication costs and liquidity costs. Rune tokens are used to pay liquidity costs in first-tier liquidity pools and second-tier liquidity centers. Rune tokens are also used to reward creditors.

The amount of reward that THORChain Digital Currency pays depends on the number of tokens that each of these creditors sticks. This encourages creditors to hold more tokens.

The THORChain team has also stated that the RUNE token will not be used as a payment token. In fact, the RUNE token is used as a bridge between the liquidity pools. This token is used as a base currency that can be used to exchange two other digital currencies in two different pools.

THORChain digital currency price

This digital currency with RUNE token, defined on China Bainance network, will be ranked 42nd on the April Market Cap site in April 2021. The total market value of these cryptocurrencies is approximately $ 3.5 billion. In July 2019, this currency entered the digital currency market with a price of 0.017. In the image below, you can see the growth chart of the one-year RUNE token price.

To see the current price of THORChain and RUNE token, refer to THORChain digital currency price page in China Bainance network .
To see the current price (ERC20) of it and RUNE token, refer to the price of it digital currency price page in Ethereum network .

Concluding remarks

It acts as a bridge between different blockchains. The purpose of these cryptocurrencies is to enable users to quickly exchange tokens on different networks. This blockchain has two layers: the first layer is a decentralized liquidity network and the second layer acts as a bridge between different blockchains.

The name of this network token is RUNE. This network has two different tokens with the same name on the China Binance network and on the Ethereum network. The Rune token on China’s Bainance network ranks much better in terms of trading volume, but the token defined on the Ethereum network has just entered the market in 2021 and has not yet taken its place.