The Orchid Token

Here’s some research on the cryptocurrency called Orchid

Photo by Rita Ox on Unsplash

About Orchid

Orchid takes a new approach to digital privacy with the first peer-to-peer, incentivized privacy network. On the network, anyone can buy and sell bandwidth using the Orchid token (OXT). Users can browse privately and access content without being limited by their geography. With its decentralized design, multi-hop architecture, and Open Source ethos, Orchid offers users “unprecedented digital privacy in a trustless context”.

Their first offering is the Orchid client, an open-source tool that allows users to explore the web with the privacy they need, served by an open marketplace for bandwidth built on Ethereum. This will display the nodes on the network and the user can choose which routes they want to take.

HOW IT WORKS

The Orchid digital currency (OXT)

OXT’s primary and fundamental purpose is to keep track of who has used computing services, who has provided computing services, and whether the average user is fairly compensating the average provider.

The OXT digital currency provides value in the Orchid network in a number of ways:

  • 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 reliance on any central party. The primary reasons for this new digital currency OXT are:

  1. To have a digital currency that is specifically tied to consumption of bandwidth on the Orchid network
  2. To align operator incentives towards the benefit of the Orchid Network.

Accordingly, in addition to facilitating bandwidth transactions on the Network, the Orchid digital currency is used to prove a stake within the Orchid network that demonstrates a commitment by bandwidth providers, as well as to mitigate certain risks.

The Orchid Protocol

The Orchid software is designed to use a custom VPN protocol, similar in scope to OpenVPN or WireGuard. 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.

The Orchid app

Users of Orchid run a client similar to a typical VPN client for protocols such as OpenVPN, but which speaks the Orchid protocol. The Orchid network client goes past the basic functionality offered by most VPN clients, with features such as the ability to run traffic through an integrated personal firewall. The Orchid client is accessible via iOS, Android, macOS, Linux, and (soon) Windows.

Orchid Accounts

Purchased 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.

The purpose of Orchid credits is to open up use of the Orchid network to a wider range of users, such as users who aren’t familiar with cryptocurrency or don’t want to deal with the intricacies themselves. No personal information is accessed or stored by Orchid during the purchase process or in the use of the Orchid app, and Orchid credits are distributed from a prefabricated pool to ensure anonymity on the network.

Created accounts:
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. The Orchid Account dapp can only be accessed using a web3 browser such as Metamask, and allows linking of crypto wallets in order to build custom accounts with granular controls. Here, users can fund an account with their own specified values as well as control the size of the associated deposit, determining ticket size in the nano payment system which can influence efficiency experienced within the Orchid app. 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.

Thank you again for reading and enjoying this journey with me!

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