Why Thorchain is important.

Summary:

• Cryptocurrency security is based on five pillars, two of which are the security of your tokens by them always being in a wallet protected by your private keys, and the second is verification through transparency.

• Unfortunately, wraps, swaps and bridges are processes which are not transparent, so you lose that pillar of security.

• And the tokens leave your wallet to enter the swap process and then renter a different wallet controlled by you on the other side.

• So the loss of cryptographic security over your tokens occurs.

• These two things are important because this type of process is the opposite of what a cryptocurrency process should be, transparent and trustless. So the process is not secure.

Thorchain is a proposed solution to this problem.

• Thorchain attempts to restore trustlessness and transparency, two pillars of cryptocurrency security.
• Your tokens stay in your wallet, protected by your private keys until the swap is executed.
• ‘The swap is transparent, you always know where your tokens are..in your wallet.
• When your tokens leave your wallet, they are replaced by your swapped for tokens in your swapped for token wallet.
• ‘That’s it.