Interoperability amongst blockchains is fast becoming one of the buzz phrases that are tossed around while debating decentralized finance and coins that are most likely to rally during an altcoin bull run.
The rapid growth of DeFi, its ever-expanding overall value locked and increasing ETH gas charges further underscore the sector’s need for a layer 2 alternative that also supports the capacity to transact value across various networks.
The free protocol of REN is primarily developed to address this need by ensuring interoperability and liquidity between the top blockchains, including Bitcoin, Ethereum and Zcash.
Over the past three weeks, the price of REN has risen by more than 200 percent, from $0.251 on Dec. 27 to a new all-time high of $0.778 on Jan. 20, powered by a record $369 million in 24-hour amount.
Three factors for the latest price rise for REN include the news of a deal with Google, the continuing increase in the overall valuation locked on the network, and the opportunity to gain passive income in various cryptocurrencies via the service of a dark node.
Google software pivot boosts sentiment, addresses RENvm scaling issues
On Jan.19 the REN team tweeted:
Ren has been researching & building on @Asylodev, an open and flexible framework by @Google. @GCPCloud confidential computing relaxes RenVM’s economic constraints, allowing for an unbounded scaling solution. #RenVM.”
Not long after the tweet, the REN price started to climb to a new all-time high. As stated in the tweet, Asylo is an open and scalable Google platform designed to help create portable applications running on Protected Enclave hardware.
Safe enclave hardware allows users to run general-purpose programs in a secure environment where no one, even the user, can damage both the data and the program itself. This provides a more safe interface for all parties involved and helps guard against malicious code and backdoor attacks.
Asylo also makes it easy to port an application from one type of hardware to another, which ensures that developers will support several applications with reasonable ease, like Intel implementations, AMD implementations, and all others that will emerge in the future. The flexibility of options that this provides is an essential factor in maintaining the decentralization of the network.
Total value locked soars to a new high
Public participation and increased benefit are crucial considerations as it comes to the long-term viability of a blockchain initiative.
After the release of the Ren Virtual Machine Mainnet (RenVM) in May 2020, the dedication to the network has slowly increased as Bitcoin investors now have another means of taking their BTC to Ethereum and increasing DeFi room.
As seen in the chart below, the total amount locked on the Ren network hit a new all-time high of $653.6 million on January 20, and a total of 14,670 BTCs are locked on the renBTC list.
The list of currencies that RenVM supports continues to expand with BTC, Bitcoin Cash (BCH), Zcash (ZEC), Filecoin (FIL), Terra (LUNA), Dogecoin (DOGE) and Digibyte (DGB) currently available for Ethereum and Binance blockchains transactions.
Development is currently underway to allow interaction on the Polkadot (DOT), Solana (SOL) and Cosmos (ATOM) networks, which will further improve the interoperability offered.
Darknodes, passive income and a decreasing supply
The third driving factor behind REN’s recent price appreciation is the use of the Ren token case and how it can help consumers gain passive income. RenVM is a network of virtual machines that make up a virtual machine, often referred to as Darknodes.
REN token holders wishing to run a dark node need to lock up 100,000 RENs which will allow them to process transactions on the network and to receive a fee in the form of a token being exchanged. Thus, a darknode user has the ability to gain passive income from one position in the form of several separate cryptocurrencies.
As can be seen in the above chart, 17,13 per cent of REN’s total supply is actually bonded to the network and facilitates the operation of dark nodes.
During the most recently completed cycle, the network as a whole received $839,128 in BTC, ZEC, FIL and BCH payments. The cumulative network fees received since the start of the RenVM amount to $2,975 million.
Continued inclusion of new tokens and interoperability with new blockchains are expected to result in expanded network use and a rise in the amount of fees received. It costs $61,570 to run a dark node at the present price of $0,6157.
If network traffic increases, the amount of fees created will also increase, making it much more profitable for token holders to run a dark node. This has the ability to contribute to more market appreciation by REN, as any new dark node results in a direct reduction in its circulating stock.
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