NuCypher: The Encryption Service for Public Blockchains

NuCypher: The Encryption Service for Public Blockchains

NuCypher is a platform that provides decentralized encryption, access control, and key management for public blockchains and decentralized applications. It enables users to share private data securely and selectively on public networks, using proxy re-encryption technology. In this post, we will explore the features, trends, updates, analysis, and outlook of NuCypher and its native token NU.

Coin Introduction and Features

NuCypher was founded in 2017 by Mikhail Egorov and MacLane Wilkison, who are also the founders of Curve and former investment bankers at Morgan Stanley, respectively. The white paper for NuCypher was published in June 2017, but the testnet did not launch until November 2018. The mainnet of NuCypher launched in October 2020 after distributing $45 million in NU tokens to nodes1.

NuCypher’s core technology is proxy re-encryption (PRE), which is a cryptographic technique that allows a proxy to transform encrypted data from one public key to another, without decrypting it or learning anything about it. This allows users to delegate access to their encrypted data to other parties, without compromising their privacy or security. NuCypher uses PRE to create a threshold cryptography network that can perform key management and access control services for public blockchains and decentralized applications.

NuCypher’s native token is NU, an ERC20 utility token that powers the NuCypher network. NU is used to incentivize network participants for performing key management services and accessing delegation/revocation operations on the network. NU is also used for staking to run a NuCypher worker node, which is a node that performs PRE operations and earns fees and rewards. NU holders can also participate in the governance of the network through the NuCypher DAO, which controls network parameters and smart contract upgrades.

Market Analysis and Trends

NU is currently trading at $0.101 USD with a 24-hour trading volume of $1,723.52 USD2. It has a circulating supply of 1,380,688,920 NU and a total supply of 1,380,688,920 NU2. It ranks #5334 on CoinMarketCap with a market capitalization of unavailable2.

NU has experienced significant price fluctuations in the past year, reaching a high of $0.2447 USD on February 12, 2021 and a low of $0.01431 USD on March 13, 20202. The price movements of NU are influenced by various factors, such as:

• The demand and supply of encryption and key management services on public blockchains and decentralized applications.
• The development and innovation of NuCypher’s technology and products, especially the integration with other platforms and protocols, such as Ethereum, Filecoin, Ocean Protocol, and Keep Network.
• The competition and collaboration with other projects and platforms in the encryption and privacy space, such as Enigma, Orchid, and Torus.
• The regulatory and legal environment and the compliance of encryption and key management services with different jurisdictions and standards.
• The sentiment and behavior of the crypto community and the general public towards encryption and privacy and NuCypher.

Project Updates

NuCypher is constantly working on improving its platform and products, as well as engaging with its community and partners. Some of the recent updates and announcements from NuCypher are:

• NuCypher + Keep Merger: NuCypher announced the proposal to merge with Keep Network, another threshold cryptography network, on February 8, 2021. The merger aims to create a new network, called Keanu, that will combine the strengths and resources of both projects and offer a unified solution for encryption, key management, and decentralized random number generation. The merger is subject to the approval of both NU and KEEP holders, who will also receive a new token, called T, that will represent their stake in the new network3.
• NuCypher WorkLock: NuCypher launched the WorkLock, a novel token distribution mechanism, on September 28, 2020. The WorkLock allowed participants to temporarily lock their ETH and receive NU tokens in exchange, which they can stake to run a worker node and earn fees and rewards. The WorkLock distributed 280 million NU tokens to over 2,000 participants, who locked over 350,000 ETH in total4.
• NuCypher Grants Program: NuCypher launched the Grants Program, a funding initiative to support the development and growth of the NuCypher ecosystem, on August 10, 2020. The Grants Program offers financial and technical support to projects and teams that build applications, tools, and integrations using NuCypher’s technology. The Grants Program has funded over 20 projects so far, ranging from data marketplaces, identity solutions, gaming platforms, and more5.

Analysis and Recommendations for Investments

NuCypher is a promising project that aims to provide a decentralized encryption service for public blockchains and decentralized applications. It offers a unique and innovative solution for sharing private data securely and selectively on public networks, using proxy re-encryption technology. NuCypher enables users to protect their privacy and security, while leveraging the benefits of blockchain technology, such as transparency, efficiency, and interoperability.

NU is a valuable token that enables users to access and benefit from NuCypher’s platform and services. It also represents a stake and a voice in the governance of the network, as well as the potential merger with Keep Network. NU holders can look forward to the development and innovation of NuCypher’s technology and products, as well as the integration with other platforms and protocols, such as Ethereum, Filecoin, Ocean Protocol, and Keep Network.

Therefore, we recommend NU as a good investment for long-term holders who believe in the vision and potential of NuCypher and encryption services. However, we also advise investors to do their own research and due diligence, as well as to be aware of the risks and uncertainties involved in the crypto market.

Outlook and Community Response

NuCypher has a positive outlook for the future, as it continues to develop and innovate its platform and products, as well as to expand and engage its community and partners. NuCypher has a clear roadmap and vision for 2021 and beyond, which includes:

• NuCypher + Keep Merger: NuCypher plans to complete the merger with Keep Network, subject to the approval of both NU and KEEP holders, in Q2 2021. The merger will create a new network, called Keanu, that will offer a unified solution for encryption, key management, and decentralized random number generation. The merger will also introduce a new token, called T, that will represent the stake in the new network.
• NuCypher Integrations: NuCypher plans to integrate its platform and services with other platforms and protocols, such as Ethereum, Filecoin, Ocean Protocol, and Keep Network. These integrations will enhance the functionality and utility of NuCypher, as well as create new use cases and opportunities for encryption and key management services.
• NuCypher Ecosystem Growth: NuCypher plans to grow and support its ecosystem of developers, users, and partners, who will use and contribute to NuCypher’s platform and services. NuCypher will also collaborate with other projects and platforms in the encryption and privacy space, as well as with regulators and policymakers, to foster the adoption and innovation of encryption and key management services.

NuCypher has a positive community response, as it has a loyal and active fan base, as well as a strong and reputable team and advisors. NuCypher has over 20,000 followers on Twitter, over 10,000 members on Discord, and over 5,000 subscribers on Reddit2. NuCypher also receives positive feedback and recognition from various media outlets, industry experts, and influencers, such as CoinMarketCap, CoinGecko, and Coinbase.