Orchid is the next-generation VPN and privacy tool that, by eliminating centralization, rewarding network contributors, and harnessing the power of blockchain, aims to keep the internet open and accessible. A marketplace for bandwidth provided by node operators on the Ethereum blockchain using the OXT token, users can pay node operators for bandwidth with OXT tokens, with the system based on a staking mechanism.
Project Introduction
Orchid (OXT) is the native token of Orchid, a cryptocurrency-powered virtual private network (VPN). Launched in December 2019, it describes itself as the world’s first incentivized peer-to-peer privacy network.
Its aim is to overcome limitations on internet freedom through cryptocurrency payments, allowing anyone to purchase bandwidth from any participating provider. This is achieved through so-called probabilistic nanopayments, which occur using OXT (an ERC-20 standard token on Ethereum). Regular payments to providers happen off-chain, enabling Orchid to avoid congestion and gas fee issues on the Ethereum network.
The service is pay-as-you-go, meaning users only contribute funds when actually connected, rather than paying monthly or annual fees.
The Founders of Orchid
Orchid was co-founded by four individuals from the blockchain and finance sectors: Dr. Steven Waterhouse (CEO), Jay Freeman, Brian J. Fox, and Gustav Simonsson.
Waterhouse is a well-known figure within the cryptocurrency space; he also co-founded venture capital firm Pantera Capital, investing in some of the industrys most popular companies. Jay Freeman created Cydia, an alternative Apple app store for jailbroken devices, currently used by around 30 million jailbroken Apple products.
Brian J. Fox developed the first interactive online banking system for Wells Fargo Bank in the mid-1990s. Meanwhile, Gustav Simonsson is one of the core security developers for the Ethereum network, having helped launch Ethereum in 2015.
According to official documentation, Dr. Waterhouse realized the necessity for improved internet privacy after becoming a victim of SIM swap attacks, leading him to research VPN technologies.
What Makes Orchid Unique
The primary idea behind Orchid is to enhance existing VPN experiences using blockchain technology.
With cryptocurrency-based probabilistic nanopayments, users benefit from anonymous VPN usage without reliance on centralized servers and the risks associated with specific national infrastructures. As a freely tradable ERC-20 token, OXT provides owners with trading incentives to own and increase the value of the network.
A separate feature allows users to purchase so-called "Orchid Credits" with fiat currency. In this case, OXT cannot be extracted or converted elsewhere, only spent with network providers. This is aimed at those who do not wish to engage in cryptocurrency transactions.
However, Orchids appeal extends beyond cryptocurrency users. Developers emphasize the growing trend toward internet freedom amidst escalating geopolitical tensions and local restrictions. Web 3.0 technologies are used to provide a semi-open internet, much like the consumer access that became mainstream in the early 1990s.
Circulating Orchid (OXT) Coins
The supply of OXT is capped at 1,000,000,000 (1 billion) units. There is no inflation, but potential token burns as part of regular network functions maintain the possibility of deflation.
Security of the Orchid Network
OXT is an ERC-20 standard token on Ethereum, with security risks primarily centered around an attackers ability to obtain user data from Orchid itself.
Given the limited information contained within the smart contracts used for payments on the platform, the weak link on-chain mainly lies with the users. As developers point out, involving third parties in token purchases for Orchid use—such as major exchanges—ultimately could lead attackers to identify users by tracing transactions to their exchange wallets.
