Part 1. What is THORChain? What is a Decentralized Exchange ("DEX")?
This is the first in a 7-part series, "The Friendly Introduction to THORChain". Subscribe to be notified when the next chapter is released.
In it's most basic form, THORChain is a protocol that enables users to exchange and earn yield on cryptocurrencies across different blockchains (ie BTC, ETH, LTC, etc...) without going through a centralized, custodial exchange.
This is key. Decentralization, immutability, uncensorability, and self-custody are the very values that make cryptocurrencies valuable in the first place, and the minute you transfer your assets into a centralized, custodial exchange, you defeat the purpose entirely.
And, crazy enough, until now, the only way to exchange value between Bitcoin and Ethereum at scale was to go through centralized, custodial intermediaries.
So, THIS IS BIG! Just as Bitcoin and Ethereum are changing the way we interact with money and financial services, THORChain stands to change the way we trade and exchange crypto assets.
Every centralized exchange you've heard of - Binance, Coinbase, Gemini, Kraken, FTX - all of them will have their business models impacted by global, decentralized liquidity pools and the decentralized exchanges they enable.