Orchid ($OXT) was created as a decentralized VPN protocol built on the Ethereum blockchain that allows users to buy bandwidth from a global network of providers. They have managed to provide a VPN service that works just as good as all the centralized ones, but with the added feature of a reward system that makes it easily scalable thanks to their probabilistic nanopayment system.
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What Is Orchid?
There’s probably a thousand different reasons why anyone would want to surf the Internet using a network that does not belong to their community. Regional restrictions, censorship and limited access to certain services and products have made it more and more popular to take advantage of the VPN. With a monthly subscription, VPN providers allow users to log in to a network from mostly anywhere in the world and enjoy the freedom that the Internet was meant to bring us in the first place. The trends could not be any clearer: today about 31% of all Internet users have used a VPN, and the industry size is estimated to be around the $35 billion figure.
As impressive as that is, there are some problems to the use of the VPN that have kept users worried for a while. Having all of your digital footprint recorded at a centralized server is certainly a risk to take into account, especially considering that these network providers are exposed to security breaches and hackers’ attacks, as it has already happened in major servers like NordVPN. To overcome this challenge, Orchid ($OXT) was created as a decentralized VPN protocol built on the Ethereum blockchain that allows users to buy bandwidth from a global network of providers. They have managed to provide a VPN service that works just as good as all the centralized ones, but with the added feature of a reward system that makes it easily scalable thanks to their probabilistic nanopayment system.
Such a sophisticated system drastically reduces the transaction time between a user request being made and processed, and the time it takes for nanopayments to be effective. This achieves a fast, decentralized and censorship-resistant service that is fully transparent in all transactions and payments. The off-chain solution allows VPN users to pay for their bandwidth use with OXT tokens while reducing overall service provider fees and solving the usually complex scalability problem. Its open-source coding allows anyone to download the Orchid node software and run all the nodes they can afford to support with their resources, giving users around the world access to whatever private network they are using.
Pros and Cons of Orchid
The Orchid network is bringing a very innovative solution to the problems faced by centralized VPNs today. Privacy standards are of the highest level and their reward system solves the blockchain trilemma in a highly effective way. Bandwidth providers are incentivized to stake OXT tokens received as nanopayments on the network to increase their reward chances. This mechanism ensures a consistent demand of the native token and a sustainable incentive scheme to guarantee the stability and reach of the nodes.
Furthermore, the team behind the project is supported by some of the most talented minds around the crypto space with Steven Waterhouse as the CEO and founder, who was a previous board member of Bitstamp, Gustav Simonsson as advisor and co-founder, a developer who worked with the launch of Ethereum in 2015. And finally, Jay Freeman as CTO and co-founder, who is famous for the creation of Cydia, the iPhone jailbreaking app that gave millions of people access to off-the-market apps. With three all-stars among other team members, it is no surprise that they have managed to raise more than $47 million dollars in seed investments from prominent funds like Sequoia Capital and Blockchain Capital.
The biggest challenge that Orchid has been facing is user adoption. With multiple centralized VPN providers offering cheap services around the world, and with all of them coming with top-tier user experiences that have been growingly optimized, it is certainly difficult for Orchid to earn a privileged spot in the market. Moreover, sustaining a global decentralized network of nodes is ensured by the reward scheme that is currently offered, but this at the same time requires the Orchid token to keep a competitive price in markets. With volatility and deflation, service providers might feel discouraged to hold and stake their tokens if their value is not expected to increase in the long run.
Where to Buy Orchid?
The following exchanges have the ORX token listed for trade:
Storing OXT: Best Orchid Wallets
The ORX token is built on Ethereum, which means you can store it in any ERC-20 compatible wallet. Here’s a list of the best online wallets:
- Trust Wallet
The Orchid protocol has come up with a very innovative proposal to solve the security issues faced by centralized VPN providers. They’ve effectively solved the blockchain trilemma and have managed to build a network stable enough to access any node provided by anyone around the world. Their management team counts with high-performing professionals who have gathered impressive experience over the years, and that ultimately has helped them secure significant investments from the most reputable funds. If they find a way to deal with user adoption and manage to be a top competitor in the industry, their success will surely be inevitable.
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