What is NuCypher (NU)?
NuCypher (NU) is the native token of the NuCypher network which offers privacy-focused blockchain solutions. NU is an ERC-20 standard token that can be used for on-chain trust distribution as well as staking.
NuCypher is a decentralized privacy solution provider. It offers cryptographic tools that decentralized apps (dApps) and protocols can utilize to reinforce security and safely store encrypted data. It’s part of the Threshold Network. The NU price, as well as other market data, can be seen in the chart above.
Who Developed NuCypher?
NuCypher was co-developed by Michael Egorov and MacLane Wilkison. Egorov is the founder of Curve Finance. He’s a physicist and scientist who has focused his work on digital security and served as the CTO at NuCypher. Wilkison is the CEO of NuCypher. He’s a software engineer with years of experience in finance and tech security.
The NuCypher platform was publicly launched in October 2020. Over a year later, in 2021, the user base voted on the merger between NuCypher and Keep, leading to the creation of the Threshold Network (T). It offers security solutions for blockchain networks and acts as a bridge between Bitcoin and Ethereum chains.
Within a year of its launch, the highest-recorded NU price was $2.61 in October 2021. Since the merger with Keep, it has been steadily decreasing with some swings, while the price has been on an upward trajectory.
Although the NuCypher price has been volatile since its launch, it has remained relatively low. It tends to follow the general crypto trends set by major cryptocurrencies, such as BTC and ETH. The asset was mildly impacted by the June 2022 crypto crash.
What Are the Main Features of NuCypher?
NU acts as both a utility and governance token. It’s used to pay for the NuCypher network services, delegated as an incentive for the network members, and a badge of participation in the decentralized autonomous organization (DAO). The max supply of NU crypto assets is capped at over 3.8 billion.
The NU token is used to pay for the network services on NuCypher. Users that require re-encryption must cover access fees for an established NU price based on the service request.
Re-encryption node operators are rewarded with NU tokens for their contributions to the network. Re-encryption nodes make up the miner network on NuCypher which any user can join. The amount of rewards that a miner receives depends on their contribution amount.
Stakeholders are also able to earn NU tokens for their contributions to the network. Such rewards are used as means to incentivize users to continue their contributions.
All token holders can participate in DAO activities. The NU token allows them to submit network proposals and vote on protocol changes. This also maintains the decentralization of the platform.
Although NyCyper is Ethereum-based, the decision was made to use an ERC-20 token rather than Ether to prevent the possibility of a 51% attack. In this hypothetical situation, the culprit could stake more Ether than there is locked in the contract. Such attacks are not profitable with ERC tokens due to the token value rapidly decreasing.
All NuCypher and Keep tokens can be converted to the Threshold Network Tokens. The NuCypher price for conversion is fixed at 1 NU = 3.26 T.
