In the early stage of the crypto ecosystem, transfer of tokens from one blockchain to another is a very complex and inefficient process. A user had to depend on a centralized crypto exchange, multiple wallets, etc, to complete even the basic token swap.
As the DeFi ecosystem is becoming popular with an increased user base, the need for cross-chain interoperability has emerged. Though various solutions came into the market, most are dependent on wrapped tokens or centralized bridges which increases vulnerability and compromises the core principle of decentralization.
THORChain provides a very different approach to these problems. It introduced a decentralized liquidity protocol and offers native token swapping across major blockchains like Bitcoin, Ethereum, BNB etc, without the need for an intermediary.
In this article, we will look into the basics of the THORChain ecosystem, which includes how it works, how it became popular and…
