• What is THORChain ? A beginners guide to its historical price and working.

• How Multiple users of THORChain can generate the distributed key. 

• Price is looking to break the support level.

What is Thorchain? A beginners guide

THORChain stands out as a decentralized exchange (DEX) built on blockchain technology, functioning as a cross-chain liquidity protocol that facilitates seamless trading between various blockchain networks. Similar to other decentralized exchanges like Uniswap and Bancor, THORChain operates on an automated market maker model. However, what sets THORChain apart is its unique ability to become a liquidity provider, connecting at least two different assets. This feature eliminates the need for traders to undergo the Know Your Customer (KYC) process, as the platform is fully based on the principles of decentralization.

Established in 2018, THORChain’s founding team remains pseudonymous, with no publicly listed C-suite executives or founders. The protocol’s developers reportedly met at a Binance Hackathon in 2018. An interesting aspect of THORChain is that the profits generated by the platform are distributed to the users, as there are no provisions for the founding and developing team. The entire system relies solely on its native token, known as RUNE, which plays a central role in the operation and sustainability of the DEX.

How does THORChain work?

THORChain is recognized for pioneering the world’s first decentralized exchange system that facilitates trading on any asset across various distributed ledgers. To achieve consensus, THORChain utilizes the Tendermint BFT (Byzantine Fault Tolerance) consensus mechanism, which ensures the security and integrity of the network. Additionally, the platform leverages the Cosmos SDK (Software Development Kit) along with the BFT mechanism to support its decentralized infrastructure.

One of THORChain’s notable features is its implementation of the Threshold Signature Scheme (TSS), enabling multiple users to generate distributed keys. This innovative approach enhances security and privacy, allowing for a more robust and trustless system. The combination of Tendermint BFT, Cosmos SDK, and Threshold Signature Scheme showcases THORChain’s commitment to creating a cutting-edge and user-friendly decentralized exchange ecosystem.

The THORChain consists of the following protocols:

Liquidity protocol

THORChain has boosted liquidity for all supported cryptocurrencies by introducing popular liquidity pools on its DEX. Users can earn additional income by depositing cryptos into these pools, thus contributing to the overall liquidity and trading activities. This benefits traders and rewards liquidity providers, creating a dynamic ecosystem for all participants.

Transparency protocol

THORChain may not be open about its founding team or directors but it is open about its functions and mechanisms, as it allows users to track detailed descriptions of developments of the platform through numerous channels.

Interoperability protocol

THORChain’s interoperability function allows cross-chain cryptocurrency transfers, enabling seamless transactions between networks like Solana and Shiba INU.

RUNE’s historical pricing and technical insights

Around a year ago, Rune’s price averaged approximately $2.5. Since then, it experienced a major high in mid-August 2022 but has been on a constant decline since then. The price hit a recent low at $1.03 in November 2022, and in February 2023, it briefly reached $1.95 but failed to sustain that level. Subsequently, it dropped to $1.22 in March 2023.

Currently, the price is consolidating between two support and resistance levels. Resistance R1 is at $1.91, and R2 is at $1.70, while support S1 is at $0.77, and S2 is at $0.53. The RSI reached 30 points previously, and it took about 20 days for the price to recover from that point.

Based on the current indicators, the prediction suggests that the price is likely to continue its downtrend, supported by the 50-day DMA (Moving Average) showing the price falling below it. Moreover, the RSI indicating the price is likely to hit the 30-point level reinforces the notion of a potential downward movement in the near future.

Conclusion

THORChain is a blockchain-based decentralized exchange (DEX) that operates as a cross-chain liquidity protocol, enabling users to trade across different blockchain networks. Launched in 2018 by a pseudonymous team, THORChain functions with a set of protocols, including the Transparency protocol, Liquidity protocol, and Interoperability protocol.

About a year ago, its token (RUNE) price was $2.5. However, after reaching a major high in August 2022, the current price is now trading within the support levels of $0.77 and the resistance level of $1.91. The predicted price trend indicates a downtrend, suggesting a potential decrease in value.