In the current blockchain ecosystem, RUNE token, as the native token of THORChain, plays a vital role. THORChain is not only a decentralized liquidity network, but also has a multi-layer security mechanism to ensure the stability of the network and the security of funds. This article will take an in-depth look at the security elements of the RUNE token and describe its important functions during the transaction process.
THORChain’s security levels
THORChain's security design is multi-layered, and these security measures are designed to ensure the solvency of the network, the stability of the protocol, and minimize the impact of any potential attacks. These security measures rely not only on the design of the code base, but also on human security efforts. The following are the main security elements of THORChain:
Confirmation Counting To prevent double-spend attacks and non-instant finality chains, THORChain uses confirmation counting when receiving incoming funds. When a user receives funds from a specific chain, the system determines the number of confirmations required based on the size of the incoming funds. Bifrost will notify THORChain when these incoming funds will be processed. It is important to note that THORChain and Binance Beacon Chain have near-instant finality and therefore do not require confirmation counting.
Outbound Transaction Throttling
In order to prevent a large amount of funds from instantly flowing out of the network, THORChain limits the flow of large outbound transactions. Each block has an outbound value limit (currently 1000 RUNE) and each outbound transaction has a maximum processing time limit. This measure has the following three effects:
Each outbound transaction needs to compete for the next outbound block or will be processed in the next block, effectively limiting the total outbound capacity of the network.
Large outbound transactions will be spread out over multiple blocks, up to 720 blocks (approximately one hour).
Ensure that one large $1 million outbound request is handled the same as a million small $1 outbound requests.
This functionality is controlled by multiple Mimir values that can be adjusted by node operators as needed. This layer of defense is designed to buy vigilant node operators time to suspend transactions or automatically stop checks before large-scale malicious outbound transactions are irreversibly executed, thus protecting liquidity provider funds.
Granular Halting Controls
THORChain has different levels of suspension controls in the network, which are managed by Mimir values or nodes based on type and level. The types of pauses that may affect individual chains include:
Pause Signing: Outbound requests are queued.
Pause liquidity providers: add/remove pauses, allow swaps.
Trading Suspended: No trading allowed.
Pause chain: The node stops observing the chain.
Additionally, there are network-level pauses for trading, synthetic assets, and lending. These controls provide an additional layer of security for the network.
Automatic Solvency Checker
THORChain’s automated solvency checker is a tool used to monitor the network’s solvency, a mechanism that ensures the network’s continued operation in the face of various market fluctuations. The checker can detect potential financial risks in a timely manner and make adjustments in an automated manner to protect users' financial security.
Application and future prospects of RUNE token: RUNE token is not only the core asset of THORChain, but also plays an important role in liquidity provision and trading. Users can participate in the liquidity pool through RUNE and receive corresponding rewards. In addition, RUNE is also used as the base currency for trading pairs in decentralized exchanges (DEX), facilitating the circulation between different crypto assets.
As the THORChain ecosystem expands, the application scenarios of RUNE tokens will continue to increase. In the future, RUNE may be further integrated into more DeFi protocols and become an important bridge for cross-chain liquidity.
in conclusion
As the core component of THORChain, RUNE token provides users with a safe and reliable trading environment with its multi-level security design. Through mechanisms such as confirmation counting, outbound transaction current limiting, layer-by-layer suspension control, and automatic reimbursement checkers, THORChain can effectively prevent potential attacks and ensure the safety of liquidity providers' funds. With the development of blockchain technology, the future of RUNE token will be full of opportunities and deserves our continued attention.