RenVM is powered by a network of thousands of machines that validate and broadcast events between different blockchains. This can be used to communicate between smart contracts on different blockchains, but it can also be used to send tokens between blockchains. Check out the specification on GitHub for more information about how RenVM works.

Cross-chain trading

RenVM has built-in support for cross-chain trading, because trading is a common use case for blockchains. This allows users to exchange tokens on one blockchain for tokens on another blockchain without needing to trust a third party. It is 100x faster than atomic swaps, has no risk of cancellation, and does not require special software from the user.

Example: an Ethereum DEX could allow a user to sell BTC for ZEC. The user could use a normal Bitcoin transaction to send BTC to an Ethereum DEX, and receive ZEC directly to their nominated ZCash address.

Cross-chain payments

RenVM also has built-in support for cross-chain payments. This allows users to send tokens from one blockchain to smart contracts on another blockchain. The smart contract is then in control of these tokens and can send them to other smart contracts, or directly to users on other .

Example: a user could use a normal Bitcoin transaction to send BTC to an Ethereum smart contract and, after some condition is met, the Ethereum smart contract could send that BTC to the Bitcoin address of another user.

Use Cases

  • DEX DEXs will be able to offer trading pairs outside of their native blockchains, taking advantage of the liquidity available on different blockchains.

  • Lending Decentralised lending applications will be able to support tokens outside of their native blockchains, allowing users to lend and borrow tokens for the blockchains that meets their needs.

  • Collateral DeFi applications that require collateral can accept collateral in tokens outside their native blockchains, making them available to a wider user base.