Orchid stands as a cryptocurrency-fueled Virtual Private Network (VPN) that establishes a decentralized marketplace for confidential communication and network routing. Within this innovative ecosystem, individuals can purchase bandwidth from a global consortium of service providers, effectively circumventing the creation of data trails. Orchid's VPN operation is seamlessly disseminated across an Ethereum blockchain-powered network of users. Notably, Orchid holds the distinction of being the pioneering incentivized peer-to-peer privacy network, a feat achieved through the utilization of its native cryptocurrency, OXT. This cryptographic asset is instrumental in incentivizing favorable behavior while deterring malicious actions.
To partake in this network, users simply need to download the Orchid app and operate the Orchid client, which closely resembles a conventional VPN. Remarkably, a single account can be shared across an unrestricted array of devices and users. In stark contrast to numerous VPN solutions, Orchid offers the unique capability for users to promptly switch providers at their discretion, facilitated by a simple button click. Furthermore, Orchid users are only charged for VPN services during active usage; no charges are incurred once the VPN is deactivated.
How Does OXT Work?
Employing a distinct custom VPN protocol, the Orchid software functions atop the widely recognized web standard, WebRTC. Comparable to established systems such as OpenVPN or WireGuard, the Orchid protocol is meticulously crafted to deliver superior networking performance. It empowers users to leverage cryptocurrency for procuring remote network resources they seek access to.
Providers of bandwidth enroll their nodes within a provider directory situated on the Ethereum blockchain. This directory preserves essential metadata such as geolocation and supplementary services available. Concurrently, their registration particulars are recorded within a stake registry. This integrated system facilitates the Orchid app's seamless exploration of arbitrary servers within the decentralized network, streamlining the discovery process.
Probabilistic Nanopayments
Bandwidth access can be conveniently acquired using OXT, Orchid's native cryptocurrency. Orchid's innovative Ethereum Layer 2 scaling architecture drives the bandwidth marketplace, employing an inventive approach called probabilistic nanopayments. Within this framework, rather than conducting a $1 transaction, a purchaser could instead transmit a "ticket" embodying a 1% probability of winning $100. These tickets, enabled by nanopayments, actually represent minuscule fractions of a cent.
To establish a nanopayment account, a sender can deposit OXT into an Ethereum smart contract, subsequently initiating nanopayments to service providers with the deposit as backing. When a nanopayment ticket yields a successful outcome, the service provider can redeem it for on-chain payment. Over time, the value conveyed on-chain is anticipated to align with the value depicted by the probabilistic nanopayments, culminating in a balanced exchange.
Uniqueness
Positioning itself as the pioneering incentivized peer-to-peer privacy network, Orchid harnesses blockchain technology to introduce a decentralized VPN solution, effectively mitigating the vulnerabilities and limitations inherent in centralized server reliance.
In contrast to conventional commercial VPN services, Orchid users possess the unique ability to swiftly and affordably switch between providers should one encounter obstacles or sluggishness. Orchid distinguishes itself from existing peer-to-peer systems, such as Tor, by enhancing performance and quality through crypto-economic incentives. This approach ensures that bandwidth availability can adapt seamlessly to the evolving demand landscape. Moreover, the innovative adoption of the probabilistic nanopayment system equips Orchid to expand payment throughput and reduce transaction fees associated with minor payments.
Value
The Orchid VPN is empowered and safeguarded by OXT. Services within the Orchid network are priced exclusively in OXT, thereby requiring users to hold this token to access the offered services. Not only users, but bandwidth sellers also necessitate OXT. They are mandated to lock a portion of their tokens into a stake deposit. This commitment positively correlates with their ability to attract more users and generate greater revenue.
OXT's supply is inherently finite, having been fully generated upon its launch. The absence of any prospect for new token creation renders OXT a scarce asset, potentially positioning it as a valuable long-term store of value.
Within the expansive $35 billion VPN market, global growth is evident as users strive to reclaim their online privacy and autonomy. The anticipated escalation in VPN demand holds the potential to augment the value of solutions like Orchid as well as the value of its native OXT cryptocurrency.
Wallet Options for OXT
Since OXT operates as an ERC-20 token, it can be securely stored in any wallet compatible with Ethereum. Your choice of wallet will largely depend on your intended usage and the quantity you wish to store.
For the utmost security with offline storage and backup, hardware wallets or cold wallets are the optimal solution. While they may involve a slightly steeper learning curve and incur higher costs, hardware wallets offer a robust safeguard. These are better suited for storing substantial amounts of OXT, particularly for seasoned users.
On the other hand, software wallets present a different avenue. They are free, user-friendly, and accessible as smartphone or desktop applications. Software wallets can be custodial, with the service provider managing and backing up private keys, or non-custodial, relying on secure elements within your device. While less intricate than hardware wallets, they are perceived as slightly less secure. As such, they suit smaller OXT holdings or newcomers to the realm.
Online wallets, or web wallets, also offer convenience and ease of use. They can be accessed via web browsers on various devices, but they fall under the category of hot wallets, which are generally less secure than hardware or software counterparts. When opting for an online wallet, it's crucial to select a reputable service with a strong security and custody history. These wallets are best suited for smaller OXT holdings or experienced frequent traders who prioritize accessibility.
Staking
Becoming a bandwidth provider within Orchid involves staking a portion of OXT on nodes through a smart contract to establish a stake deposit. Orchid's staking directory then employs a randomized process to link users with providers, taking into account the staked token amount. Notably, providers with larger stake deposits enjoy connections to a greater number of users. Once a node reaches its maximum bandwidth capacity, any surplus stake becomes effectively redundant.
Tokens become eligible for contributing to bandwidth once they have been locked into a stake deposit. However, prior to withdrawing their tokens, providers must navigate an "unlocking" procedure, featuring a three-month cooldown period. Orchid's stake-weighting system sets it apart from conventional proof-of-stake models. In this ecosystem, users solely earn revenue by offering bandwidth and do not receive OXT tokens simply for staking.
