One article to understand the WEB3.0 privacy infrastructure favored by a16z

The current lack of privacy on the internet leaves billions exposed to mass surveillance and data breaches. It undermines trust in digital services and stifles innovation. In the original “crypto wars” of the 1990s, open source libraries like OpenSSL created the opportunity for new services like Paypal, Amazon, and eBay to emerge — without the combination of browsers and websites needed to secure financial transactions Without end-to-end encryption between them, these services would not be possible.

The situation today is very similar: privacy is undermined by ubiquitous data collection and centralized giant monopolies. It hinders the emergence of innovative services and platforms. However, due to popular dissatisfaction with mass surveillance, and the new possibilities Bitcoin opens up to create incentives, the tide is turning towards decentralization, enabling an open network to cooperate and maintain itself.

What is Privacy Infrastructure Nym?

One article to understand the WEB3.0 privacy infrastructure favored by a16z

Nym proposes new foundational standards and open source privacy libraries that enable previously unimaginable applications and markets. Nym is a permissionless and incentivized network designed to protect user privacy. The Nym Network provides an extensible privacy infrastructure to enable third-party applications and services to provide private access to their users.

It is composed of a decentralized hybrid network (a network of hybrid nodes) and an anonymous cryptosystem. This is in stark contrast to Tor, which is designed to protect against weaker adversaries. Anonymous credentials allow users to prove their “right to use” when accessing services privately over a hybrid network. The blockchain maintained by validators decentralizes the operation of the entire Nym network.

How does it work?

One article to understand the WEB3.0 privacy infrastructure favored by a16z

Its main technology is a mixnet that provides privacy protection at the network level. Any metadata communicated in Internet traffic is removed by the Nym Hybrid Network.

Metadata is data about data such as who you talk to, when, where, from what IP address, etc. Metadata is essentially the language of machines, as most monitoring today is done using machine learning algorithms. Therefore, metadata is as important as the data itself when it comes to monitoring your internet activity and predicting your behavior.

The Cosmos-based blockchain “Nyx” is used to track the reputation of each “mix node” tracked by the NYM token. This blockchain network also runs the smart contracts for the Nym hybrid network (for rewarding nodes), as well as contracts for NYM token transactions (all NYM users, and those who stake NYM tokens to run “mix nodes”).

Financing Information

On May 2, 2022, privacy infrastructure Nym received a $300 million ecological fund commitment. Supporters include Polychain, Greenfield One, Huobi Incubator, Tioga Capital, Eden Block, NGC Ventures, HashKey Capital, Figment, Fenbushi Capital, OKX Blockdream Ventures, Tayssir Capital, KR1, Lemniscap and a16z. The fund will be used to attract developers to its ecosystem, with single grants ranging from $50,000 to several million dollars.

On November 17, 2021, privacy infrastructure Nym completed a $13 million Series A financing at a valuation of $270 million, led by a16z, with participation from DCG, Tayssir Capital, Huobi Ventures, HashKey, and Fenbushi Capital.

team member

The members of the project team come from the blockchain field and traditional markets. Founding members include:

One article to understand the WEB3.0 privacy infrastructure favored by a16z

Harry Halpin

Harry Halpin – Chief Executive Officer: Harry was a former research fellow at the University of Oxford and federation president of the WWW research organisation at the University of Edinburgh. Since November 2018, he has devoted all his energy to the NYM Technologies project incubated by Binance.

One article to understand the WEB3.0 privacy infrastructure favored by a16z

Dave Hrycyszyn

Dave Hrycyszyn – Co-Founder and CTO of NYM: Dave works on and published a book on the Scalatra open source network.

He also helped build NetFlix, the BBC’s Connected Data project and others. He is also a co-founder and advisor to Vega Protocol, backed by many important funds such as Pantera Capital and Spring.

One article to understand the WEB3.0 privacy infrastructure favored by a16z

Ania Piotrowska

Ania Piotrowska – Co-Founder and Head of Research, NYM: Ania specializes in research and development at NYM. Her research focuses on Internet security, security-enhancing technologies, decentralized systems, and anonymous communications.

Nym’s web design

Nym is designed to support privacy-enhanced access to applications and services, including services that protect communication metadata and privately prove “right to use”. Nym leverages token-based incentives to fund operational costs, dynamically scale to meet user privacy needs, and reward nodes for providing high-quality services to the protocol.

Participants of the Nym Network

There are three types of nodes that make up the three types of nodes in the Nym infrastructure: validators, gateways, and hybrid nodes.

One article to understand the WEB3.0 privacy infrastructure favored by a16z

Hybrid Nodes: Hybrid nodes protect end-user privacy by sending packets anonymously. Before reaching the final receiver, the packet will pass through Mix nodes (called mixnets) in the network. Mixing nodes convert received packets into encrypted form and rearrange them, making it nearly impossible to determine what the output data is, whether the output is content-based or time-based.

Gateways: Gateways allow access to NYM’s hybrid network while preventing data misuse for personal gain. Contestants can choose to apply the same gateway consistently for all access, split access paths for different gateways, or access a separate gateway per day. The gateway also assists in secure communication functions by temporarily storing received messages for users who are offline or who have not received them.

Validators: Validators play a key role in the NYM network. They manage the NYM blockchain, which serves as a secure broadcast channel for distributing information in the network, such as a list of active nodes and their public keys, network configuration parameters, signal points, periodic random tokens, participant stakes, NYMpool deposits (for mutual funds that support the NYM network), distribution rewards from NYMpool, and any other data publicly available to participants to ensure the safe operation of the network.

Anyone can become a validator and run a node in the NYM network as long as they can contribute capacity to the network while maintaining the corresponding level of service. Participants join the NYM network by staking NYM tokens, but will be rewarded based on actual work performance.

One article to understand the WEB3.0 privacy infrastructure favored by a16z

NYM provides rewards and tokenized rewards for validators, gateways, and mixing nodes to ensure professional maintainability, high performance, and high quality of service, all of which are required for applications to run efficiently on the NYM blockchain.

This incentive ensures long-term operation and consistency of nodes, which is in the best interest of all network participants.

What are the characteristics of Nym network?

In addition to providing the privacy features of unlinkability and anonymity, the Nym network is designed to meet the following requirements:

1. Universality: The Nym network is a universal communication infrastructure that can be easily integrated with any networked application wishing to benefit from its privacy features.

2. Scalability: The expansion of the Nym network can support a wide range of services with a large user base. Nym uses an architecture that can dynamically add more hybrid nodes to meet the growing demand for routing privacy-enhancing traffic. Furthermore, the privacy that Nym provides increases as the network grows: integrating more applications leads to more user mix.

3. Incentives: To ensure that high-value applications can rely on the Nym network for communication, Nym incentivizes validators, gateways, and hybrid nodes through tokenized rewards to ensure professional rewards and maintenance, high performance, and quality of service. Incentives are designed to ensure that long-term honest cooperative behavior is in the best interests of all network participants.

4. Decentralization: The Nym network has no trusted party, centralized components, or single point of failure in any function.

Any function, including: routing communications, public key discovery, issuing and validating certificates, performing quality of service measurements, and distributing rewards.

5. Permissionless: Anyone can become a validator, gateway or hybrid node in the Nym network, provided they can provide capacity to the network with an appropriate quality of service. Participants need NYM tokens to become part of the Nym network, but their rewards are based on execution rewards.

6. Security: The Nym network is designed with state-of-the-art security and privacy technologies to maximize its resistance to attacks.

It supports users and services even in the face of formidable adversaries.

What is the purpose of the Nym Network’s native token, NYM?

There are three main use cases for the NYM token.

  • First, users are required to pay fees in NYM tokens when sending their data through the hybrid network.
  • Second, users can also stake NYM tokens to run “mixing nodes”. The job of a hybrid node is to obfuscate the packets (note: so in essence, a hybrid network is actually a network of nodes that provide obfuscation services), and then based on its reputation and quality of service, the “mix node” operator will be rewarded with NYM tokens . If mixing nodes successfully obfuscate user traffic, their reputation will increase and the amount of NYM they can earn will increase accordingly.
  • Finally, users can delegate to a hybrid node to run.

Therefore, the intrinsic value of a token is its utility in granting access to the privacy of the network and providing incentives for it. Cryptoeconomics is designed to incentivize high-quality privacy protection: the higher the quality of service, the more rewards a node earns, and the better its reputation within the overall infrastructure.

Simply put, the NYX blockchain is more like a state machine that records the data changes required by the entire NYM network to ensure that all privacy protection work is traceable. In addition, because NYX is based on Cosmos, it has the characteristics of fast and easy integration and its own Coconut protocol. In the future, it can also provide a basic platform for various applications that require strong privacy protection, such as DeFi protocols that need to integrate privacy protection. This year, NYX’s main network has been successfully launched, and related tokens have been issued. According to its blockchain browser, 2,809 hybrid nodes, 20 gateways and 2 verification nodes have joined the network worldwide.

In summary, the advantage of NYM is that it provides a complete privacy protection solution with clear division of labor, solid technology and practicality, which is superior to traditional VPN and onion network (Tor); because the latter two only encrypt data packets , the monitor can still analyze the size and incoming and outgoing order of the data packets to perform anti-anonymity, and the method of disrupting the ordering of data packets by NYM’s mixed nodes completely overcomes this problem.

Although the market has repeatedly reported that the Web 3 privacy track will usher in an explosion, at present, the privacy track is still a niche market, and the number of users and usage is not high. Before the encryption market fully enters the mainstream, many people think that privacy The track is a false proposition,

But at the same time, there are also many views that privacy solutions are more attractive for attracting more institutional capital to participate in the encryption ecology and ensure that important financial data and business secrets are not leaked. Therefore, it is also an important infrastructure for the encryption ecology to usher in the next wave of outbreaks. .

Reference sources

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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