Happy Sunday Publish0x community and welcome back in this new article of my “Easy & Short Cryptocurrencies Made Accessible” area.
In this article we talk about more features of Orchid!
In the last E&S article I introduced you Orchid (OXT) and I said that the Orchid network enables a decentralized Virtual Private Network (VPN), allowing users to buy bandwidth from a global pool of service providers. Orchid's mission is to enable people to understand and control the network activities of their computers without worrying about censorship, surveillance or intermediaries.
If you missed the article you can recover it here before to continue this one.
Well, the main and basic purpose of OXT is to track who uses computing services, who provides computing services, and whether ordinary users fairly compensate ordinary providers. The OXT digital currency provides value in the Orchid network in a number of ways:
- Bandwidth provider: anyone can operate an Orchid Node, but must first stake OXT. More OXT staked = greater chance of reward in the Network
- Bandwidth user: users can pay-on-the-fly for a private, secure internet connection. To power up client, a user installs the Orchid VPN, adds OXT to a wallet and then can access the internet through a user-chosen path to ensure a secure connection anywhere in the world.
The primary reasons for this new cryptocurrency OXT are:
- To have a digital currency that is specifically tied to consumption of bandwidth on the Orchid network.
- To align operator incentives towards the benefit of the Orchid Network.
If you have already read some of my articles or follow my YouTube channel, you probably remember that I have already talked about Staking on several occasions. In a couple of previous YouTube videos I told you about TRX and ALGO staking.
In this occasion we can stake also OXT tokens.
But… how OXT staking works?
A provider stakes some number of OXT to create a stake deposit. Anyone can stake OXT on nodes using the smart contract. Clients select new nodes in proportion to their relative OXT deposit size. Larger stake deposits thus lead to more users, bandwidth and revenue.
After the tokens are locked to the deposit, they can be used for bandwidth supply immediately. If the provider wants to withdraw the tokens from the staking contract, they must begin a period of "unlocking" which involves a three-month cooldown period during which their funds cannot be used as a provider deposit or transfer to other places.
In the previous article we have talked about some goals of Orchid. Today I want to see also some of its limitations.
- Network Dependence: The economic security of Orchid is limited by the economic security of Ethereum itself. An opponent who is capable of destroying or destroying the Ethereum network will naturally destroy Orchid.
- User Scalability: The current Orchid nanopayment system has an efficiency/variance tradeoff: larger face value tickets reduce the frequency of on-chain payments and transaction fees at the expense of variance.
- Payment Anonymity: Rare winning nanopayment tickets are redeemed through on-chain Ethereum transactions. Thus Orchid nanopayments are only pseudo-anonymous, and occasionally leak some information.
- Public Node Directory: The Orchid node directory is published on the Ethereum blockchain and thus is public to the world. Thus it is easy for a censoring adversary to automatically block all the listed contact IP addresses of Orchid nodes.
Coinbase, in the section "Earn", also gives you the opportunity to earn some dollars in OXT by watching short videos and answering questions correctly.
With this second article about Orchid we have discovered new things about this project! I would like to know your opinion about Orchid and VPN!
Next Sunday I’ll introduce you a new cryptocurrency!
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