What is Darknodes?

Darknodes are the main force behind RenVM, forming a decentralized network of these computers. These nodes , managed autonomously, contribute their computing power and storage space in return under certain conditions.

What Are Darknodes?

RenVM, which functions as a cross-blockchain liquidity network , relies on thousands of darknodes for its operations.

These darknodes, or autonomously managed nodes, can be hosted by anyone, as long as they meet several conditions.

The terms include using a private virtual server to run the RenVM software and investing 100,000 REN coins into the darknode registration contract. This configuration forms an incentive structure, encouraging node operators to resist malicious behavior by putting their deposits at risk.

Main Role of Darknodes

The main role of darknodes in RenVM is to be a decentralized and trusted custodian for digital assets stored on the platform. When the platform converts digital assets into ERC-20 tokens, users can collect fees.

In the context of Republic Protocol's decentralized dark pool, darknodes play a critical role in establishing protocol security and facilitating network operations.

Utilizing Order Fragments

Darknodes leverages order fragments to reconstruct private order data after identifying and validating corresponding orders within the orderbook . Corresponding orders are then sent to the relevant dark pool settlement layer, with at least one settlement layer determined by third-party dark pools.

Rewards for Darknodes

Darknodes are rewarded for initiating settlement, with the first Darknode obtaining a sufficient number of matching order pieces and initiating settlement quickly.

It is important to note that order shares are distributed evenly across the network, and transaction settlement fees are not only paid in REN. Nodes have the flexibility to accept fees in multiple currencies such as ETH and other arbitrary tokens.

REN tokens

REN tokens serve as fuel to upgrade the sMPC network powered by Darknode (RenVM). Although the Darknode network operates on a permissioned basis, a mandatory bond of 100,000 REN tokens is required for registration and operation.

This step prevents malicious actors from creating a large number of incorrect Darknodes aliases and flooding the network with inaccurate Darknodes.

Conclusion

Running Darknode for RenVM is considered a significant responsibility, requiring active participation in the network and community. Basic technical knowledge, including familiarity with the command line interface (CLI), is essential.

Darknode operators must consistently update and replenish their nodes with ETH, and a commitment to contributing to network security is emphasized by REN.

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