What is Crypto-Powered VPN ORCHID NETWORK ??
Orchid provides its users with a Decentralized virtual private network (VPN). People using Orchid can buy bandwidth from a global pool of service providers. Orchid has it’s ERC-20 Token “OXT”. It is described as a utility token by ORCHID NETWORK. ORCHID NETWORK has a new VPN protocol for token- incentivised bandwidth proxying, and smart-contracts with algorithmic advertising and payment functions. Orchid’s users connect to bandwidth sellers using a provider directory, and they pay using probabilistic nano-payments so Ethereum transaction fees on packets are acceptably low.
ORCHID NETWORK has 7 main components:
- The ORCHID App
- OXT Utility Token (Cryptocurrency)
- ORCHID Accounts
- Orchid Protocol
Let’s discuss the above components one by one :
THE ORCHID APP:
ORCHID’s users run a client similar to any other VPN client, but this client speaks to ORCHID protocol. The Orchid network has way more features over an average VPN user, it is due to various features such as to run traffic through an integrated personal firewall. As per Orchid website, currently the app is available for macOS, iOS, Android, Linux and soon to be on (windows) too.
ORCHID Utility Token (OXT):
OXT is a ERC-20 token which is used on the ORCHID network. Its primary and fundamental job is to keep track of who is using the computing service and who is providing the computing service on ORCHID.
The OXT token is being used in a number of ways on inside the ORCHID network :
- A Bandwidth Provider – Anyone can operate an ORCHID Node, but must first stake OXT, with the more OXT that is staked, the greater the chances of reward in the Network.
- A Bandwidth User – For the first time, users can pay-on-the-fly for a private, secure internet connection. To power up the client, a user installs the ORCHID VPN, adds OXT to a wallet, and then can access the internet through a user-chosen path to ensure a secure connection anywhere in the world. Users only pay for the bandwidth they consume.
The bandwidth marketplace is peer-to-peer and run in a completely Decentralized manner without any central party. The primary reasons for this new digital currency OXT are:
- To have a digital currency that is specifically tied to consumption of bandwidth on the Orchid network
- To align operator incentives towards the benefit of the Orchid Network.
Basically there are two types of ORCHID accounts:
ORCHID supports the ability for users to buy a pre funded ORCHID account from within the official iOS app using native FIAT currency. “ORCHID credits” are special accounts where the OXT is not able to be withdrawn by the user, and must be spent only with our preferred providers. Like all ORCHID accounts, the account can be shared with an unlimited number of people or devices.
What is being purchased when a user buys ORCHID credits?
- Balance Based on the chosen pricing tier, the user will receive an Orchid account funded with a pre-determined amount of OXT which can be used to purchase bandwidth on the ORCHID network.
- Deposit A portion of the purchase is invested as a deposit to the generated account. This is required for participation in the ORCHID network as both a deterrent of client malfeasance as well as a determinant for ticket sizing in our nano-payment system.
- ETH gas Transactions made on the Ethereum blockchain require small payments of ETH and a portion of the credits purchase goes to covering these costs for creating the ORCHID account.
- Fees Transaction fees for accepting FIAT.
Users looking to supply their own OXT holdings to fund their participation in the ORCHID network can create a custom account using ORCHID’s web3 based Dapp at account.orchid.com. These accounts can be easily linked to the Orchid app as an alternative to purchased accounts as well as shared with an unlimited number of people and/or devices.
The ORCHID Protocol
The ORCHID protocol is designed for high-performance networking and runs on top of WebRTC, a common web standard, widely used to transmit video and audio from inside browsers. Our protocol allows users to request access to remote network resources and pay for these resources using OXT via the ORCHID nano-payments system.
ORCHID uses a new probabilistic nano-payment system to scale payment throughput.
This nano-payment system is the foundation of the ORCHID peer to peer bandwidth marketplace where clients pay Node operators OXT “tickets” for proxy bandwidth. The system is designed to lower the transaction fees on small payments by amortising transaction fees across many transactions and even across multiple parties.
Service providers on ORCHID run software similar to a typical VPN daemon for protocols such as OpenVPN, but which speaks the ORCHID protocol.
A provider stakes some number of OXT to create a stake deposit.
- Anyone can stake OXT on nodes using the smart contract.
- Clients select new nodes in proportion to their relative OXT deposit size.
- Larger stake deposits thus lead to proportionally more users, bandwidth, and revenue.
- If the node is already at max bandwidth capacity additional stake is effectively wasted.
Once tokens have been locked into a stake deposit they can be used immediately for bandwidth provisioning. If the provider wants to withdraw tokens from the staking contract, they have to start an “unlocking” process period, which involves a three month cool down where their funds cannot be used as a stake deposit or transferred elsewhere by the provider.
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