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Glossary

Darknodes

November 21, 2023 - Around 3 mins mins to read

Darknodes are an integral part of the RenVM liquidity network, which operates across multiple blockchains. Darknodes, also referred to as autonomously managed nodes, play a crucial role in ensuring the functionality and security of the network.

Anyone can become a darknode host, but there are specific requirements that need to be met. Firstly, each darknode must run the RenVM software on a virtual private server. Additionally, darknode operators are required to invest 100,000 REN coins into the darknode registry contract. These conditions incentivize responsible behavior and deter malicious activities by putting the operators’ deposits at risk.

Darknodes serve as decentralized and trustless custodians for digital assets stored on the RenVM platform. When the platform converts a digital asset into an ERC-20 token, users can collect fees. In the Republic Protocol’s decentralized dark pool, darknodes play a crucial role in ensuring protocol security and facilitating network operations.

The primary function of a darknode is to match orders from the Republic Protocol’s hidden orderbook. This collaborative effort is less computationally intensive compared to Bitcoin mining. Darknodes use order fragments to reconstruct the private data of matched orders and validate them. The matched orders are then sent to the relevant dark pool’s settlement layer. Third-party dark pools define at least one settlement layer, and darknodes are rewarded for initiating the settlement process.

It’s important to note that order shares are evenly distributed throughout the network, and transaction settlement costs can be paid in currencies other than REN, such as ETH and other tokens.

The REN token serves as fuel for the sMPC (secure multiparty computation) network powered by a Darknode (RenVM). While the Darknode network is permissionless, a bond of 100,000 REN tokens is mandatory to register and operate a Darknode. This requirement prevents malicious actors from creating a large number of aliases and flooding the network with fraudulent darknodes.

Running a Darknode for RenVM is a significant responsibility that requires active participation in the network and community. It also requires technical knowledge, such as familiarity with a command-line interface (CLI). Darknode operators need to regularly update their darknodes and replenish them with ETH. It is advised not to participate in the RenVM ecosystem unless one is dedicated to contributing to the network’s security.

In summary, darknodes are essential components of the RenVM liquidity network. They ensure the security and proper functioning of the network by acting as decentralized and trustless custodians for digital assets. Darknodes match orders, validate transactions, and initiate settlement processes in decentralized dark pools. The requirements and incentives provided to darknode operators help maintain the integrity of the network and prevent malicious actors from abusing the system.

Author

Coincu

Glossary

Darknodes

Darknodes are an integral part of the RenVM liquidity network, which operates across multiple blockchains. Darknodes, also referred to as autonomously managed nodes, play a crucial role in ensuring the functionality and security of the network.

Anyone can become a darknode host, but there are specific requirements that need to be met. Firstly, each darknode must run the RenVM software on a virtual private server. Additionally, darknode operators are required to invest 100,000 REN coins into the darknode registry contract. These conditions incentivize responsible behavior and deter malicious activities by putting the operators’ deposits at risk.

Darknodes serve as decentralized and trustless custodians for digital assets stored on the RenVM platform. When the platform converts a digital asset into an ERC-20 token, users can collect fees. In the Republic Protocol’s decentralized dark pool, darknodes play a crucial role in ensuring protocol security and facilitating network operations.

The primary function of a darknode is to match orders from the Republic Protocol’s hidden orderbook. This collaborative effort is less computationally intensive compared to Bitcoin mining. Darknodes use order fragments to reconstruct the private data of matched orders and validate them. The matched orders are then sent to the relevant dark pool’s settlement layer. Third-party dark pools define at least one settlement layer, and darknodes are rewarded for initiating the settlement process.

It’s important to note that order shares are evenly distributed throughout the network, and transaction settlement costs can be paid in currencies other than REN, such as ETH and other tokens.

The REN token serves as fuel for the sMPC (secure multiparty computation) network powered by a Darknode (RenVM). While the Darknode network is permissionless, a bond of 100,000 REN tokens is mandatory to register and operate a Darknode. This requirement prevents malicious actors from creating a large number of aliases and flooding the network with fraudulent darknodes.

Running a Darknode for RenVM is a significant responsibility that requires active participation in the network and community. It also requires technical knowledge, such as familiarity with a command-line interface (CLI). Darknode operators need to regularly update their darknodes and replenish them with ETH. It is advised not to participate in the RenVM ecosystem unless one is dedicated to contributing to the network’s security.

In summary, darknodes are essential components of the RenVM liquidity network. They ensure the security and proper functioning of the network by acting as decentralized and trustless custodians for digital assets. Darknodes match orders, validate transactions, and initiate settlement processes in decentralized dark pools. The requirements and incentives provided to darknode operators help maintain the integrity of the network and prevent malicious actors from abusing the system.

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