Threshold Network, which was introduced in January 2022, is the first-of-its-kind result of the union of two decentralized protocols, NuCypher (NU) and Keep Network (KEEP), to offer complete security and anonymity to its users.
A Comprehensive Review for Threshold Crypto – 2023
The structural components of Threshold Network are derived from Keep Network, while the privacy components come from NuCypher. The merged network gives users full control over their digital assets on the public blockchain and offers a suite of Threshold cryptographic services that are designed to address some of the most pressing privacy issues. It offers the tBTC bridge protocol and the proxy re-encryption service (PRE).
Proxy Re-Encryption Service (PRE)
A new era of the internet, also known as web3, is being made possible by the emergence of decentralized programs (DApps) built on blockchain technology. The current web3 platforms, which are based on open blockchains, do, however, pose threats to user privacy.
Threshold Network offers a distinctive remedy for user privacy problems in web3 through its proxy re-encryption service (PRE). Without disclosing the underlying data to any outside party or validator, proxy re-encryption enables users to manage access to sensitive data on public networks.
tBTC Bridge Protocol
Threshold cryptography gives digital assets more utility while also addressing issues with user data privacy and usability in a secure and trustless manner. It accomplishes this by connecting Bitcoin and Ethereum through its decentralized tBTC bridge, increasing the liquidity of the Ethereum ecosystem. To convert Bitcoin to the tBTC token, an ERC-20 token that can be used on the Ethereum network, there is no need for a middleman or outside entity.
Threshold DAO System Types
The Threshold ecosystem is managed by a three-tiered DAO structure. The ecosystem must remain decentralized, and this is the key. At the same time that it fulfills its specific duties within the governance framework, each layer keeps the other two accountable. In plain English, the three layers function in a similar fashion to how centralized authorities use checks and balances.
Staker DAO
Owners who stake their T tokens on the network make up the Staker DAO. It is in charge of delegate voting, proposal execution, and on-chain proposal submission. As stakeholder-run decentralized nodes authenticate transactions on the network, this DAO has the majority of the network’s decision-making authority. The size of a stake determines a stakeholder’s voting power.
Token Holder DAO
Participants in tBTC coverage pools who possess T make up the Token Holder DAO. They also need to delegate votes, make proposals on-chain, and carry out the proposals, just like the Staker DAO. To preserve accountability in the network, the Token Holder DAO has the authority to veto proposals from the Staker DAO, manage the treasury, and decide on T mining. It is anticipated that in the future, it will also be in charge of choosing and dismissing Council members.
Elected Council
There are nine seats in the Elected Council DAO. Four of these seats are reserved for members of the Keep Network community, four are reserved for members of the NuCypher community, and one seat is reserved for a jointly elected independent member. In the future, candidates for the Elected Council will come from the entire Threshold community. Setting stakeholder rewards is the Council’s responsibility. It can also veto detrimental ideas to uphold accountability and guarantee the network’s continued decentralization.
Tokenomics
The Threshold Network uses T as its native token. It functions as a Threshold DAO governance token as well as a network utility token. In the Threshold ecosystem, this token can be used in a variety of ways. It offers numerous methods to generate money in addition to making the network run more smoothly. The T token, for instance, can be used to stake a node and earn rewards. T token owners can contribute to the operation of the Threshold Network by staking and hosting a decentralized node to monitor all network activities.
Ten billion T tokens are available, of which 4.5 billion have been distributed to NU holders and another 4.5 billion to KEEP holders. The Threshold DAO has been given the remaining 1 billion T tokens. At the time of writing, the T token is trading at $0.02487, according to CoinMarketCap. The token price decreased by 9.44% in the last 24 hours.
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