The REN project aims to create the first and only open protocol, which will provide access to inter-blockchain liquidity for all dApps. While blockchain technology offers much potential, there are still issues to do with interoperability and privacy. Without the feature of interoperability, connecting different blockchains together is impossible.
What this Project Wants to Solve
Today, there are ecosystems where blockchains can communicate within them. However, these ecosystems cannot communicate with each other. They cannot communicate with ecosystems that were not created inside the ecosystems.
The Interoperability Promise
The REN project is able to solve this by integrating with other blockchains. It ensures interoperability liquidity and privacy. With this, it is able to advance existing and new DEXs, dApps, and DeFi apps of all types. The project will create interoperability that will naturally integrate with existing and new smart contracts, no matter which blockchain they were created on. For instance, this project will make it possible for an Ethereum DEX to support ZCash, Bitcoin, and many others without modification.
The interoperability will also work on zero-knowledge. For instance, when you use ZCash with an Ethereum smart contract, you will not compromise any of the zero-knowledge properties of ZCash.
The promised interoperability of this project will also be abstracted. Thus, users will not need to acquire a special wallet. Thus, users trying to trade BTC on the Ethereum DEX will only need to transfer BTC on the BTC blockchain without any extra steps.
How REN Works
The whole REN project was created on a decentralized virtual machine, which is replicated over thousands of machines. The machine is called the REnVM. This virtual machine is quite similar to the blockchain. It is trustless, decentralized, and features Byzantine fault tolerance capabilities. Anyone can run a node and take part in powering this virtual machine.
The Problems it Solves
For most dApps, in particular, those involved in decentralized finance, the solutions for interoperability and privacy are important pieces of the puzzle that are not yet present. Interoperability and trustless privacy are needed to achieve dApps, which are secure, liquid, and usable. Various use cases such as DEXs, Dark pools, collateralization, lending, digital assets transfer, and many other use cases are now interoperable, private, and practical via the RenVM.
What Can be Built
The RenVM SDK will serve as the plug-in for decentralized finance and thus, any DeFi app will be able to integrate interoperability into the app and existing smart contracts. For those projects that would gain from cross-chain liquidity, integrating RenVM is crucial.
With major players such as Facebook entering the crypto realm, this could help attract more institutional investors into crypto. It could be a good thing for the REN dark pools. Even in real life, dark pools account for about half of all stock trades. REN is simply bringing these dark pool capabilities into the blockchain. The liquidity and anonymity that it will offer are quite attractive and lucrative for dApp developers and investors.