Thorchain's Reason for Living is to allow you to swap crypto with other people from the safety of your wallet.
Simple concept, difficult to do in practice.
This simple premise reminds us that the strongest security of cryptocurrency is the cryptographic protection of your wallet and your private Key, but such security requires your cryptocurrency to stay in your wallet, protected by your key.
Wrapped tokens and 3rd Party Risk
An essential element of the huge money making opportunities through out decentralized finance on Binance, Ethereum, Polygon, Avalanche and most other blockchains is the wrapping of tokens to get what is essentially a NFT which represents the value of your toekn on another blockchain.
The problem with this great financial opportunity is it requires you to send your crypto tokens from your wallet to someone else's wallet, to hold for you, while you use essentially an NFT to invest in decentralized finance on a blockchain other then your tokens native one.
This wrapped token situation means hundreds if not thousands of crypto traders trust the person holding their native tokens, which they hold the NFTs.
And this is a trusted person arrnagement, where you are at risk of losing all your native tokens if this person doesn't properly secure your cryptocurrency.
This is called 3rd party risk, and this big pot of valuable cryptocurrency tokens attracts hackers and other theives.
Ironically this is the opposite of what crypto is suppose to be about, Trust, crypto is suppose to be Trustless.
But as we say in America money talks and people walk, so people ignore the Trusted aspect of this arrangement to make money.
But now we have Thorchain, where true cross chain swaps can occur without wrapped tokens, and true decentralized finance occurs without swaps.
It is so simple, but also fantastic.
So Go Thorchain
The dream, the mythical cross chain swaps and cross chain decentralized finance with your tokens controlled by your wallet, has been found on thorchain.
