{"id":11090,"date":"2023-05-18T05:22:09","date_gmt":"2023-05-18T05:22:09","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=11090"},"modified":"2022-05-18T05:52:00","modified_gmt":"2022-05-18T05:52:00","slug":"what-is-renbtc","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-renbtc","title":{"rendered":"What is RenBTC?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-renbtc\/#history\" >History\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-renbtc\/#how_does_renbtc_work\" >How does RenBTC work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-renbtc\/#renbtc_use_cases\" >RenBTC use cases<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>If you have ever heard of the\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/all-about-ren\/\">Ren Protocol<\/a>\u00a0project, you probably know that there is an\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-an-erc-20-token\/\">ERC-20<\/a>\u00a0token belonging to it. This token is called RenBTC and\u00a0<strong>is a decentralized representation of Bitcoin within the Ethereum network.<\/strong><\/p>\n<p>RenBTC\u2019s goal is to bring\u00a0<strong>Bitcoin into the world of Decentralized Finance<\/strong>\u00a0that inhabits the Ethereum network. All this in order to manage to boost the growth of the system. It is worth noting that, before this project, many others have set out to bring Bitcoin to the Ethereum network. In this article we will tell you why this token is making it, what it is and how it works.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"history\"><\/span><b>History\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>RenBTC is a token that stands out from the rest, as its main goal is to develop a token that has a value anchored to the value of Bitcoin. In other words, it seeks to make<strong>\u00a01 RenBTC equal to 1 BTC,<\/strong>\u00a0regardless of the fact that RenBTC is an ERC-20 token running over the Ethereum network. The idea itself\u00a0<strong>may seem impossible<\/strong>, but as mentioned above, it is not the first project to propose this. Another project that has set this same goal is\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-wrapped-bitcoin\/\">wBTC<\/a>. Both projects are trying to achieve the same goal: to make Bitcoin usable in the\u00a0<strong><a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-ethereum-eth-and-how-does-it-work\/\">Ethereum<\/a>\u00a0ecosystem.<\/strong><b><\/b><\/p>\n<p>To achieve this great goal requires\u00a0<strong>a qualified and prepared development team<\/strong>\u00a0and RenBTC has it. Among its founders, we can highlight the CEO of the development company behind the Ren ecosystem,<strong>\u00a0Taiyang Zhang.<\/strong>\u00a0Zhang, before the founding of Ren, held an important position as a founding member of<strong>\u00a0KeeperDAO<\/strong>\u00a0and is also one of the co-founders of\u00a0<strong>Virgil Capital<\/strong>. This is a multi-strategy quantitative cryptocurrency trading company. Taiyang is a leading expert developer and early adopter of cryptocurrencies.<\/p>\n<p>But the development team does not only consist of one person. We can also highlight the participation of\u00a0<strong>Loon Wang<\/strong>\u00a0who currently holds the position of chief technology officer at Ren. Wang was a developer of\u00a0<strong>Neucode<\/strong>\u00a0software in addition to having held the position of academic instructor at the Australian National University. The team also includes three other software developers, blockchain developers and a researcher. Currently, the team has\u00a0<strong>more than 30 members.<\/strong><\/p>\n<p>All Ren Protocol developers have joined forces to achieve never-before-seen\u00a0<strong>blockchain interoperability.<\/strong><\/p>\n<p>As a result of their work, RenBTC was born. This token is derived from an even larger project that has made its operation possible. This project is\u00a0<strong>RenVM<\/strong>\u00a0(Ren Virtual Machine). Before going on to explain how RenBTC works, it is necessary to review what RenVM is and why it is so important.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>&nbsp;<\/p>\n<div id=\"image_1515938427\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu%C3%A9-es-RenBTC1.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC1-300x205.jpg 300w\" alt=\"Qu\u00e9-es-RenBTC\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC1-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC1.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_does_renbtc_work\"><\/span><strong>How does RenBTC work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As mentioned above, we will first talk about\u00a0<strong>RenVM<\/strong>. This is a virtual machine (universal computer) that\u00a0<strong>aims to function as a bridge<\/strong>\u00a0between different blockchains in order to enable interoperability between them. Basically, it is in charge of creating an infrastructure that<strong>\u00a0allows\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-cross-chain-swap\/\">cross-chain<\/a>\u00a0operations<\/strong>\u00a0in an easy, simple and secure way. If you want to know more about how this machine works you can see\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-renvm\/\">it in this article<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>On the other hand, the operation of RenBTC\u00a0<strong>is quite simple<\/strong>. For its operation it uses a well-known method in the operation of transactions\u00a0<strong>called lock and mint<\/strong>. This is a transaction (or several of them) between blockchains that originates\u00a0<strong>in the Ethereum and\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-bitcoin\/\">Bitcoin<\/a>\u00a0blockchains.<\/strong><\/p>\n<p>These operations are focused on<strong>\u00a0the development of\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-smart-contract\/\">smart contracts<\/a><\/strong>\u00a0in Ethereum and a HTLC transaction located in Bitcoin to carry out a third operation of unlocking balance in Bitcoin and\u00a0<strong>minting RenBTC tokens<\/strong>\u00a0in the Ethereum network. This whole process is carried out in a decentralized manner and best of all, without intermediaries.\u00a0<strong>It should be noted that the process involves tools provided by RenVM.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>This process begins when a user sends his\u00a0<strong>bitcoins to RenVM<\/strong>. Once the coins have been sent, the system blocks this sending and takes\u00a0<strong>custody of the coins.<\/strong>\u00a0Meanwhile, the RenVM is in charge of initiating a process of minting and generating the RenBTC tokens. At that moment, the user is granted what we call \u201c<strong>minting signature<\/strong>\u201c.<\/p>\n<p>The minting signature is a signature that allows the holder\u00a0<strong>to obtain the amount of BTC<\/strong>\u00a0they have sent to the Ethereum network in the form of<strong>\u00a0RenBTC<\/strong>\u00a0tokens. In this way users convert their BTC coins\u00a0<strong>into\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-an-erc-20-token\/\">ERC-20<\/a>\u00a0tokens<\/strong>\u00a0<strong>within the network<\/strong>\u00a0and for the same value. In this way Bitcoin and its users can participate in the DeFi system of the Ethereum network\u00a0<strong>without any problems or third-party intervention.<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Something very interesting about this operating model is that it not only works for Bitcoin,\u00a0<strong>but can also be adapted t<\/strong>o other blockchains such as Bitcoin Cash, ZCash, Polkadot. This means that we can also convert\u00a0<strong>BTC,\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-bitcoin-cash-bch\/\">BCH<\/a>\u00a0or\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/zcash-zsc-complete-guide\/\">ZEC<\/a>\u00a0into other ERC-20<\/strong>\u00a0tokens using RenVM.<\/p>\n<p>&nbsp;<\/p>\n<p>Once we have converted the cryptocurrencies into tokens, the only thing left to do is to\u00a0<strong>withdraw them<\/strong>\u00a0when we have achieved our goal. This process is very easy. We only have to generate a \u201c<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-token-burning\/\"><strong>transaction burning<\/strong><\/a>\u201d through the virtual machine to burn the RenBTC and they cease to exist. This releases our BTC balance that was retained in the system\u00a0<strong>and we recover our cryptocurrency.<\/strong><\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_860332361\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu%C3%A9-es-RenBTC2.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC2-300x205.jpg 300w\" alt=\"Qu\u00e9-es-RenBTC\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC2-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2022\/02\/Qu\u00e9-es-RenBTC2.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"renbtc_use_cases\"><\/span><strong>RenBTC use cases<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Each project has a great utility and this also has<strong>\u00a0its own use cases<\/strong>. We will see them below.<\/p>\n<p>One of the use cases that first stood out in this project was the ability\u00a0<strong>to create a DEX or decentralized\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-cryptocurrency-exchange\/\">exchange<\/a><\/strong>. These DEXs would have the ability to carry out cross-chain operations with other currencies supported by the\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/all-about-ren\/\"><strong>Ren<\/strong><\/a>\u00a0protocol. One of the advantages is to offer these types of transactions securely and without counterparty risk.<\/p>\n<p>In addition,\u00a0<strong>RenBTC contributes to facilitate the participation of users who\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-hold\/\">hold<\/a>\u00a0Bitcoin<\/strong>\u00a0in the DeFi world, as they only have to send their BTC and transform them into RenBTC to participate in the network without any process such as the KYC mandatory in exchanges.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Another use case would be lendin<\/strong>g. This token allows great flexibility to create\u00a0<strong>pools that offer their\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-liquidity-of-a-cryptocurrency\/\">liquidity<\/a><\/strong>\u00a0in different tokens in addition to Bitcoin.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>If you have ever heard of the\u00a0Ren Protocol\u00a0project, you probably know that there is an\u00a0ERC-20\u00a0token belonging to it. This token is called RenBTC and\u00a0is a decentralized representation of Bitcoin within the Ethereum network. RenBTC\u2019s goal is to bring\u00a0Bitcoin into the world of Decentralized Finance\u00a0that inhabits the Ethereum network. All this in order to manage to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-criptomonedas"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/11090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=11090"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/11090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7176"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=11090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=11090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=11090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}