Smart Contract $MMETA : 0x7a9c ... 92351f
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5 Ways Ren Protocol Can Be Beneficial In Blockchains

What is a ren protocol? That is most likely the first question that comes to mind when you read about this. This refers to the protocol that gives access to a private and eased transfer of value between any blockchain. The protocol was built in 2017 by Loong Wang, who was based in Canberra, Australia, and software developer Taiyang Zhang, who was based in Singapore. It manages to run its operations through RenVM, powered through decentralized nodes called the Darknodes. These things provide you with decentralization but not actual autonomy over liquid assets. RenVM also makes use of different types of advanced technology, including Shamir’s Secret Sharing, Secure Multiparty Computation, Byzantine Fault Tolerance, and Hyperdrive.

This protocol is also well-positioned to overtake the DeFi system as they have started taking advantage of the protocol by integrating RenVM in relation to their activities, which include transferring their cryptocurrency into DeFi applications. Hearing all of this news about the ren protocol all at once must have been overwhelming, right? Why don’t we observe, one by one, all the benefits that the protocol has to offer?


1. Permissionless



One of the best things about the ren protocol is the fact that they are permissionless, meaning that it’s going to take no third party to handle this issue or even ask for consent. These activities can be handled independently. This protocol has enabled developers and systems like DeFi for cross-chain liquidity and more effective transactions. This can be enabled by bridging assets like Bitcoin. This technology can single-handedly solve problems pertaining to the mobility of assets as well as give an opportunity to its users. 

By removing the necessary third party from the equation, we are providing an opportunity for the individuals by removing that aspect of trust. We are letting the smart contracts speak for themselves. This means that the activities run will also be free from as many human errors as possible as it is run by codes. This is different from the faultful everyday nature of everyday transactions and human-run institutions as it is designed to be 100% objective in their judgments.


2. Security


Security of Bitcoin

Following up on the fact that it’s permissionless, many people may think that because it’s so free, it would be dangerous to participate in it. The reality is far from that. Unlike traditional transactions where you are expected to trust the producers to give you the product you want without knowing if it really is, the program is run by codes. Therefore, there is no need for an individual to grow trust for a certain party. The end result is guaranteed, and there is no aspect of fraudulence involved. It is also worth noting that there is no central authority involved in this protocol. Therefore, you don’t have to worry about control companies creating free RenBTCs for themselves. 

Those of you worrying about this aspect of the protocol shouldn’t have to worry because every transaction is ensured to be safe and secure. It is even written in their own smart contract. It is safe to say that they were programmed that way. Besides that, there is no one to bother you if you want to mine, burn, or do anything with your BTC. Therefore, it gives you the opportunity to be fully free from any outside party that is trying to meddle in your business.


3. Privacy



Other benefits in this category would include the fact that privacy of the transactions and the individual is also very ensured. In this system, you can exchange your bitcoin for an Ethereum without having to provide an explanation as to why you are doing that. The system takes good care of your privacy because you aren’t obliged to answer any questions about your transactional activities, do taxes in relation to it, nor do you have to do any paperwork about it, unlike others. 


4. Efficiency



The most important thing is how this protocol has managed how efficient this has managed to make activities be. Now, how has RenVM helped in terms of efficiency? Because of this technology, idle assets can now cross over to other blockchains, allowing to utilize the facilities of Tools and Decentralized Protocols that were unavailable before but now are in other blockchains and also the privilege of shorter time frames and lower fees. 

The creators of this are approaching this protocol as if it’s coin insurance, making its outcomes resemble an insurance company. This may not have been the initial aspiration, but this would create the desired outcome if this is going to be worn as the outlook on where to head themselves. 


5. The Team Behind It



The biggest advantage to this protocol and how it managed to pull off the best execution is due to the team behind it that made it happen. The Ren team is fast at responding to issues and fixing them while coordinating solutions that do not put the funds at risk as well. Due to the high control and planning since the beginning of its creation, they rarely are met with issues concerning the funds of users and developers being lost in the blockchain. Even if they do, the team is able to respond fast to it and cover all the guns in no time. This would be impossible to pull off if the team didn’t act responsibly from the beginning. If this type of organizational culture is kept, then no doubt there will be minimal issues.

This team also has great planning because usually, when teams are ambitious, they would want their projects to be decentralized and work right off the bat. This Ren team is patient and is able to understand the processes of security. Therefore, they are able to avoid it with ease.


With all of this in mind, we can now see how the ren protocol has and will be beneficial to not only the blockchain but also individual users and many other parties. Hope this helps if you are interested in jumping into the industry. 

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