THORChain is a decentralized liquidity network that enables cross-chain swaps, allowing users to trade native assets across different blockchains without the need for wrapped or pegged tokens. It's designed to offer a trust-minimized way of exchanging assets while maintaining full custody of their funds.

Consensus Mechanism

THORChain utilizes a unique consensus mechanism Tendermint that is part of its broader network security and operational framework. The network employs a process called "churning," where nodes are periodically selected to join or leave the network to maintain security and efficiency. Validator nodes are chosen based on their bond size, with larger bonds being preferred. This mechanism ensures that the network remains secure and that validators have a financial stake in the proper operation of the network​​.

Protocols

At its core, THORChain supports several key protocols and features that enhance its functionality. It enables cross-chain swaps between native assets without requiring users to use wrapped tokens, maintains non-custodial transactions ensuring users have control over their assets, and offers single asset liquidity through its Savers Vaults. This allows liquidity providers to earn from swap fees without exposure to the network's native token, RUNE​​.

EVM Compatibility

THORChain's architecture is designed to facilitate cross-chain communication and settlements, including Ethereum. 

Use Cases

THORChain's decentralized nature allows for various use cases, including swapping between different cryptocurrencies across chains seamlessly, providing liquidity to earn yield, and lending out native assets as collateral for loans. Its infrastructure supports a wide range of decentralized finance (DeFi) applications, from liquidity pools to synthetic assets, lending platforms, and more. This flexibility opens up new possibilities for DeFi, enabling more efficient and user-friendly financial services that operate across multiple blockchains​​.