RUNE is the native token of the Thorchain network. Thorchain is a liquidity and interoperability system with an emphasis on facilitating secure cross-chain cryptocurrency transactions. It has a maximum supply of 500,000,000 and was introduced in 2018.
A step-by-step guide to buying RUNE
Want to buy Rune? Follow these simple steps to get involved with the Thorchain network:
Step 1. Create an account on a cryptocurrency exchange that allows you to trade RUNE
Compare a list of exchanges that support RUNE. Depending on the exchange you choose, RUNE can be traded with Canadian dollars (CAD), Bitcoin (BTC), Ethereum (ETH) or a different crypto. You’ll need to provide your email address and create a password to register for an account, while it’s also recommended that you set up two-factor authentication to provide an extra level of security.
Step 2. Deposit funds into your account
Many cryptocurrency exchanges only allow trading between cryptocurrencies and don’t allow the direct deposit of fiat currency, such as CAD, so you may need to own or buy BTC or ETH first.
The exact process for depositing funds into your account varies depending on the exchange you choose.
Step 3. Buying RUNE
The final step is to trade your chosen currency for RUNE on the exchange. Once again, the exact process you need to follow may vary slightly depending on the exchange you choose.
Where to buy RUNE
RUNE is available on a number of popular cryptocurrency exchanges, including:
How does Thorchain work?
Thorchain’s goal is simple: build bridges to enable anyone to securely and cheaply move any assets between any blockchains.
Although similar to other cross-chain compatibility systems, such as wrapped Bitcoin (wBTC), Thorchain aims to enable the movement of the assets themselves on their home chains.
The first part of Thorchain’s solution is liquidity pools, all of which are composed of RUNE tokens in combination with other assets.
These pools serve as the source of all the different swappable coins from different blockchains, while the RUNE token acts as an intermediary currency to allow swapping between any two supported assets. Basically, whenever an end user wants to swap an asset from one blockchain to another, they’re making a trade through these pools.
In addition to providing the liquidity necessary for the system to work, Thorchain also uses its liquidity pools for pricing data, under the assumption that any discrepancies between its liquidity pools and other markets will be arbitraged out quickly.
The other part of Thorchain’s solution is the nodes, whose job it is to provide security to the network, to build bridges to all the different supported blockchains and to ensure that all transactions are broadcast to the appropriate chains.
Basically, the nodes all keep one eye on the liquidity pools and another eye on the supported blockchains. When someone makes a cross-chain transaction using the liquidity pools, the nodes see it happen and then perform the actual on-chain transactions on the user’s behalf.
Nodes are theoretically kept honest through their staking of RUNE tokens, so the system can act as a convenient one-stop shop for someone’s cross-chain transfer needs.
What does the RUNE token do
The RUNE token serves two key purposes in the Thorchain network:
- The token is found in all Thorchain liquidity pools, to create an intermediary asset for use across all of them, greasing the wheels for transfers.
- It acts as an incentive and penalty mechanism, helping ensure that nodes are honest in their behaviour and their reporting of transactions on different chains.
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