Why Thorchain is important.

Summary:

Cryptocurrency security is based on five pillars, two of which are the security of your tokens by them always being in a wallet protected by your private keys, and the second is verification through transparency.
Unfortunately, wraps, swaps and bridges are processes which are not transparent, so you lose that pillar of security.
And the tokens leave your wallet to enter the swap process and then renter a different wallet controlled by you on the other side.
So the loss of cryptographic security over your tokens occurs.
These two things are important because this type of process is the opposite of what a cryptocurrency process should be, transparent and trustless. So the process is not secure.

Thorchain is a proposed solution to this problem.

Thorchain attempts to restore trustlessness and transparency, two pillars of cryptocurrency security.
Your tokens stay in your wallet, protected by your private keys until the swap is executed.
‘The swap is transparent, you always know where your tokens are..in your wallet.
When your tokens leave your wallet, they are replaced by your swapped for tokens in your swapped for token wallet.
‘That’s it.

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Does this also apply to tokens you put in an LP? I know that they want to make the holding process as decentralized as possible.

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Yes, that’s another thing I am exciting about. It’s complicated, but it’s a trust-less and truly decentralized model.

Good question, I was waiting tinking the same thing, that trustless LPing would be terrific.

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Hi
This is nice, short, clear and concise.
Perfect.
More like this please, bite size pieces, this stuff is complex, so easier to digest in small pieces.
Thanks

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I have never investigated the quality of this project but lately I have seen many people from the world of cryptocurrencies talking about Thorchain. Thanks for making this article

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Your welcome.

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Good explanation.
Thanks

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Thanks!

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You mentioned thorchain so clearly. So lots of crypto when they bridge, wraps and swaps are not transparent. I didn't know this until now. Thank you !

Agreed, I like this post for its clarity and brevity.
LOL :)

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Your welcome :)
I am glad you liked the post!
:)