What can the distributed dark pool REN's virtual machine RenVM provide?

Binance Academy today published an article about dark pools, their advantages, and their controversial nature. BlockBeats once made a project introduction, introducing Republic Protocol (REN) of distributed dark pool based on smart contract. Today, in conjunction with the Binance Academy article, I'll show you how RenVM works.

A dark pool, in short, is one in which there is no listing or eating price in the transaction, and these prices are not disclosed, or, to be precise, are disclosed only when the transaction is executed. The main reason for the emergence of dark pools is that in the increasingly developed electronic trading system on the floor, large orders executed by cut institutions can be easily read by high-frequency traders.

Thus, with the help of dark pools, institutions can complete transactions in a context that does not reveal their purpose, greatly reducing transaction costs.

On the basis of dark pools, some projects of distributed dark pools have emerged in the block chain industry. Compared with ordinary dark pools, the advantage of distributed dark pools without intermediaries is the security of verification methods. In other words, distributed dark pools can ensure the fairness of prices in the market and reduce the possibility of price manipulation.

With that out of the way, let's take a look at how the distributed dark pool Republic Protocol's virtual machine RenVM works. This is actually explained by the Republic Protocol's official Medium, and we've picked some highlights to help you understand.

To illustrate the principle of RenVM, let's use an example of generating a version of BTC on ethereum. RenVM provides a service that allows privacy and interoperability across multiple inputs and outputs.

In short, RenVM ACTS like a hosting house, helping users host assets as they move between blockchains. For example, if a user puts a BTC in RenVM, RenVM will generate a renBTC on the Ethernet link. It's like WBTC. It should be noted that WBTC and renBTC have completely different technologies, except that the WBTC specification is easier to understand. Each WBTC is backed by a real BTC, all 1:1, and renBTC is the same.



RenBTC is only an example. At present, REN can support 4 kinds of assets, including BTC, ETH, BCH and Zcash. However, since RenVM USES ECDSA private key signature, theoretically, all assets signed by ECDSA can be used on RenVM.

The main feature of RenVM is the privacy of decentralized applications. Loans, mortgages, DEX, and other decentralized financial applications can use RenVM for privacy. Given the current decentralization of applications on ethereum, the addition of privacy can greatly enrich the variety of projects.

Imagine the privacy version of MakerDAO, the privacy version of Uniswap (in fact REN is already working on Chaosdex, which is equivalent to the privacy version of Uniswap), and so on, all of which can be implemented through RenVM, which is the equivalent of a plug-in for these Defi applications, providing liquidity and privacy trading services. REN, who is expected to go online on the main network this year, is worth paying attention to.

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