The highly anticipated launch of RenVM brings a fresh, trustless solution for users to mint BTC, BCH, and ZEC as ERC20 tokens, essentially allowing those coins to be used in the ever-growing DeFi landscape.
The enterprise’s ambition is to serve as a bridge that extends far beyond BTC, ETC, and joining any conceivable pair of blockchain-based tokens, including stablecoins such as Facebook’s Libra or even the government-backed e-Yuan.
A consortium of more than 50 establishments dubbed the Ren Alliance, which includes crypto venture capital firm Polychain Capital, is currently involved in helping to secure, develop and utilize RenVM—including DApps, decentralized exchanges, and other DeFi projects.
About RenVM Protocol
The RenVM Mainnet aims at removing liquidity silos that have often hindered DeFi’s growth prospects. Consequently, the protocol will function as a robust and permissionless tool for DeFi apps.
Essentially, RenVM functions as a decentralized custodian holding crypto assets and then minting them on the ETH blockchain as an ERC20.
Consequently, the platform generates a virtual machine for efficiently moving digital assets from one blockchain to another, without needing permission from any central entity.
Taiyang Zhang, CEO and co-founder of Ren, was excited about the RenVM Mainnet launch, touting it as a critical step in their long-term mission of creating a decentralized platform for DeFi that is self-sustaining and advances the entire industry.
An Elegant Solution to Blockchain Interoperability
Technologies like RenVM, which promote decentralized cross-chain flow, are a critical component to accelerating the reach of DeFi.
Just about a month ago, Ethereum co-founder Vitalik Buterin defined the lack of a BTC-ETH bridge as a severe limitation, and urged more resources from the crypto industry to be directed toward building a trustless, serverless platform.
“…It’s embarrassing that we still can’t easily move between the two largest crypto ecosystems trustlessly.”
His main motivation in calling for greater connectivity levels between BTC and ETH lay in how crypto users often face punishing charges whenever they are trying to swap digital assets on centralized exchanges.
Apart from Ren, which has stepped up to answer Buterin’s call for increased blockchain interoperability, MakerDAO has also announced it will allow users to bring their BTC to the Ethereum blockchain after beginning to accept Wrapped Bitcoin (WBTC) as collateral.