If the goal is blockchain interoperability and synergy, then the Republic Protocol’s work can’t go unnoticed.
After launching the RenVM mainnet in late May 2020, today (July 27, 2020), the Republic Protocol (REN) shared its plans to wrap DigiByte’s native coin, DGB, to renDGB to enable interoperability with Ethereum’s ERC-20 and DeFi protocols.
What is the Republic Protocol?
Ren is a blockchain project actively striving to connect public chains to Ethereum.
Similarly, Ethereum is the home of DeFi — a subspace within the larger blockchain industry that has gained a lot of traction recently. Tokenizing leading digital assets, therefore, creates value through utility expansion for the respective coin holders while simultaneously driving activity in the second most valuable platform.
Interoperability Drive, renDGB can act as Collateral
In May, Ren launched its core product: the RenVM. A permissionless tool, RenVM connects leading blockchain networks with Ethereum. BTC, ZCash, and Bitcoin Cash were the first platforms to be connected. The triggering objective for the creation of RenVM was to “remove liquidity silos that have long hindered DeFi’s growth potential.”
For interoperability, RenVM takes custody of non-Ethereum digital assets—DGB, to create corresponding ERC-20 assets (renDGB). Each wrapped coin in circulation isn’t synthetic and doesn’t rely on a liquidation mechanism. Instead, each coin is pegged 1:1 to the backing asset stored by a decentralized custodian.
Notably, RenVM can be understood as a versatile and decentralized custodian. For the security of deposited assets, the tool uses secure multi-party computation (sMPC). Supportive nodes can, therefore, securely and privately store assets’ private keys.
Besides, there is privacy since the Ren team has incorporated zero-knowledge proof as a security layer. When using RenVM, supported DeFi dApps run in secret thereby protecting the privacy of users and generated data.
RenVM Boosts DeFi Liquidity
To boost the buildup of liquidity, DeFi projects can also use RenVM as a plugin and add them to their existing smart contracts. This way, users will access an interface where they can easily and instantaneously withdraw supported ERC-20 tokens like renBTC, renDGB, or renBCH.
With this partnership, DigiByte developers can continue improving the protocol while assured of interoperability with Ethereum through the RenVM.
According to a tweet by V-ID, some of the entities and partners involved in the project include the likes of IBM, Hyperledger, LTO Network, Zapier, and SAP, among several others. The tweet notes that the VIDT Datalink solution will help in “connecting everything to every chain and unlocking practical deployment for any corporate cloud.”
For the uninitiated, V-ID is a blockchain-enabled document certification system that aims to provide the easiest and robust file protection against fraud and other ill-practices. The VIDT API allows organizations and corporates to certify and safeguard their confidential digital data against sophisticated data manipulation.
With V-ID, users can verify their confidential files within 5 seconds without requiring any login, plugin, or any additional details. V-ID introduces an additional layer of security by extracting the unique fingerprint of the authentic file and stores it in the blockchain. By further leveraging the benefits of blockchain technology via VIDT Datalink, V-ID – in collaboration with DigiByte and others – looks to create various new projects in its rapidly growing ecosystem.
In June, As reported that DigiByte (DGB) had partnered with V-ID blockchain. Consequently, the decentralized blockchain will be part of the VIDT Datalink solution but will also work in upcoming security projects.