The Threshold Network aims to solve this problem by bringing to the table the concept of threshold cryptography which enhances utilities for digital assets. Moreover, the threshold network does this without the need for a centralized authority. In the last 24 hours, the Threshold token or T spiked almost 90%. So, what is the Threshold Network and how does it work? Tag along to find out.
Online security and privacy have been major issues in blockchain-based applications and services. People regularly upload their private data on online applications in return for access to multiple platforms. These data banks can be misused and even abused by malicious entities and hackers who gain control of your information and invade your personal space.
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The Threshold Network aims to solve this problem by bringing to the table the concept of threshold cryptography which enhances utilities for digital assets. Moreover, the threshold network does this without the need for a centralized authority. In the last 24 hours, the Threshold token or T spiked almost 90 percent. So, what is the Threshold Network and how does it work? Tag along to find out.
The Threshold Network: What is it?
The Threshold Network was launched in January 2022. It was created from an on-chain merger between NuCypher and Keep Network, two decentralized networks. The Threshold network ensures that users can enjoy total control over their digital assets along with their private data and other related information. It was launched to address security and privacy concerns on blockchains.
So how does it work?
The network uses threshold cryptography and entrusts multiple independent entities to complete sensitive operations. A threshold or in other words, a minimum number of entities must collaborate in order to successfully complete an operation. In the case of centralized exchanges, it depends on one person for carrying out the necessary tasks. Sometimes, that individual can inflict potential damage if he/she has any malicious intent.
The Threshold Network solves this issue by providing a decentralized platform where these independent actors come together and carry out the necessary tasks. This principle enhances the security of the network and provides safety for user funds and user data.
The platform utilizes a decentralized network of nodes to offer multiple threshold cryptography services for various Web3 applications. The two main components of the Threshold ecosystem are the proxy re-encryption service or the PRE and the tBTC v2. While the former is a cryptographic middleware designed to protect user information, the latter serves as a decentralized and trustless bridge linking Bitcoin to Ethereum.
The threshold Token (T)
The T token is the native cryptocurrency of the Threshold network. Apart from functioning as a utility token, T also functions as a governance token for the Decentralized Autonomous Organization or DAO of the Threshold network.
The developers offer multiple opportunities to the T token holders to earn rewards. The network offers rewards for staking your T tokens on the network just like any other Proof-of-Stake consensus algorithm. The network offers what they call the ‘Threshold Staking’ where users can stake their T tokens on escrow and earn rewards for running a node on the network.
The network offers multiple liquidity pools where liquidity providers can generate yield by depositing assets. This will in turn result in enhancing the ease of trading in the DeFi ecosystem while providing liquidity for automated market making. Moreover, the platform offers individual token holders a chance to participate in the Threshold DAO governance and vote on the decisions that will impact the future of the project. In order to do so, users who are holding the old KEEP or Legacy NU tokens must first upgrade their tokens to T.
The token has shown steady growth over the last month while averting the disastrous market conditions of 2022. With the global crypto market off to a good start in 2023, T price has experienced a phenomenal surge of 90 percent over the past 24 hours. Threshold network has an active community that believes in the vision of the project.
Source: CoinMarketCap (T/USD)
At the time of writing, T was trading hands at $0.04466 gaining 86.41 percent over the previous day.
Threshold Network has a robust community and fans and supporters of the token have shown continued support for the project. It aims to solve the real problem of user security and privacy through a trustless decentralized platform. Moreover, their tBTC v2 Bitcoin to Ethereum bridge enables BTC holders to use their BTC in Decentralized Finance (DeFi) in a trustless manner, which is a great innovation in the blockchain space.
(Edited by : Anushka Sharma)