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How often do you come across a cryptocurrency that’s skyrocketed over 1,000% in a single day? Not often, we dare venture. In this article we’ll discuss NuCypher, a project that managed to achieve this feat — and is poised to repeat it in the near future. The NuCypher protocol is tackling problems plaguing the blockchain industry via a host of innovative solutions. Let’s delve into the workings behind NuCypher and its native crypto token NU.
NuCypher is a new-generation cryptocurrency platform that specializes in blockchain security, using advanced cryptography. Launched in late 2015, it’s the brainchild of Michael Egorov and MacLane Wilkison, two entrepreneurs with excellent track records.
In 2017, the NuCypher network started to focus on providing services to decentralized networks. Currently, this network offers services to industries that deal with huge volumes of sensitive data, for instance healthcare and banking. But what exactly is NuCypher, and what problems does it solve?
At its core, NuCypher is a blockchain protocol with a focus on enhancing privacy for its users. Using the network, blockchain developers can store private data on any public blockchain without having to worry about security. With the help of NuCypher’s proprietary security layer, users are able to share information while keeping their data private.
NuCypher’s proxy re-encryption protocol lets users share private data on a public blockchain securely, thus eliminating the need for a separate private network such as a VPN. Also, users can grant or revoke access for specific data to/from several other users, simultaneously.
NuCypher’s USP is its ability to offer advanced privacy layers in a decentralized environment. Thanks to this feature, it’s currently positioned as a one-of-a-kind cryptocurrency threshold network that offers key management and data privacy for decentralized apps (DApps).
NuCypher crypto (NU) is the native token of the NuCypher protocol. An Ethereum-based token with multiple use cases, holders of the NU token earn rewards by staking the coin to run worker nodes. When you stake NU on the network, you become eligible to run a node and receive incentives on a regular basis. You’ll be rewarded with a certain amount of NU whenever you facilitate and perform encryption services for users in the network.
The NU token doubles as both utility and governance token. Depending on the quantity of NU a user holds, they may be entitled to vote and help determine the future direction of the NuCypher decentralized autonomous organization (DAO). At the time of this writing, the price of the NU token is around $0.74, with a total market capitalization of around $515 million.
By offering flexible access control systems on the private data of public blockchains, NuCypher performs the role of a crypto management protocol. Features like private keys and passwords can be effectively saved on NuCypher.
There are two ways the protocol works, both of which involve cryptographic services. The first service NuCypher provides is through Umbral, which is the protocol’s encryption scheme. Apart from Umbral, NuCypher also uses Ursula, a chain of operating nodes, to stake tokens and mint new ones.
Umbral: The encryption arm of the NuCypher protocol, Umbral makes use of nodes to both encrypt and decrypt data without gaining access to it. More precisely, your private key can be saved — but it won’t be seen throughout this process. Only you will have access to the unique encryption key.
Ursula: Ursula performs both management and control functions for the NuCypher network. It also uses encrypted nodes to activate staking, mint new tokens, and for the day-to-day governance of the platform. The only criterion to be a node operator is that you stake your NU tokens. For your services, you’ll receive rewards in both Ether (ETH) and NU. It’s important to watch downtime carefully, and not to procrastinate with your responsibilities. The protocol doesn’t deal lightly with this issue, and may take stiff measures — such as removing defaulting node operators from the network.
Staking is perhaps the most important feature of the NU token, which acts as a governance token on the NuCypher network, and can be used as a tool to earn passively. Since staking is safer than trading, it would likely appeal most to conservative investors. Unlike with most protocols, staking is the only way in which newly minted NU tokens are introduced to the network.
Stakers of the NU token can participate in the development of the NuCypher protocol, a fully decentralized network. They can put forth proposals, vote, and release funds for projects.
This is a digital library on the NuCypher Network that allows encrypted data to be privately computed by nodes. Unlike regular libraries, it uses a new consensus mechanism known as “proof of concept.”
Note: the figures below are accurate as of this writing, and are approximated up to two decimal places.
Current NuCypher (NU) Price — $0.74
Current Market Capitalization — $515 million
Maximum Supply — 3.9 billion NU
Circulating Supply — 695 million NU (18% of Maximum Supply)
Fully Diluted Market Cap (if the maximum supply were in circulation) — $3.4 billion
24 hour Trading Volume – 248 million NU
Ethereum-Based: The fact that NuCypher operates on the Ethereum blockchain may seem like an insignificant detail to some, but this is actually very important for the protocol. Building on the Ethereum network — currently the largest DApp and DeFi blockchain — comes with several advantages. With the Ethereum ecosystem, interoperability is streamlined, security is assured, onboarding is easy, and storage can be leveraged.
Storage and Responsiveness: NuCypher has removed the dilemma of storage and responsiveness from the DApp ecosystem. An extra encryption layer known as proxy re-encryption comes into play, allowing developers to share data among themselves securely and without fear of breaches.
Competition: NuCypher operates in a crowded data security space. Most of what it offers is already available elsewhere, for example in protocols such as Storj.
Ambiguity: NuCypher’s economic model is opaque, as it’s not laid out publicly. Its value appreciation needs extra scrutiny, as it seems to defy logic and to be technically questionable.
Blockchain technology is at the forefront of a revolution in many industries that has already begun. With its primary focus on blockchain privacy, NuCypher contributes to the smooth functioning of many other blockchain networks. Multiple use cases for the NuCypher token suggest strong fundamentals for the NU cryptocurrency.
Currently, there’s high demand for affordable access to cloud services and blockchain data protection protocols. This demand is expected to increase in the upcoming years, as the decentralized economy expands. There’s also been a significant increase recently in the number of data breaches and hacking episodes in the crypto space. Since NuCypher is a service that has the potential to tackle these problems, it’s positioned itself as a strong contender in the blockchain security space, and can thus be considered a worthy investment.
Regarding price action: the NU token took off and recorded stellar 1,000% growth on Oct. 15, 2021. The increased anticipation created by the recent news of the NU merger with Keep Network (KEEP) may have contributed to this price rise. Keep Network is a similar project, enabling users to share private data on a public ledger.
In the NU/USDT price chart below, you can clearly observe a healthy dip. If you’re planning to invest in this crypto, technical analysts believe now is the right time to do so. (Note: The crypto market is volatile. Crypto trading comes with a high level of risk, so please ensure you do your own research beforehand.)
NU has gained a lot of traction recently in the crypto community, with the astronomical rise in its price driving this hype. Many exchanges listed the NU token post-price surge. You can now buy it on many notable centralized and decentralized exchanges.
One of the easiest ways to acquire the NU token is to swap your existing Bitcoin (BTC) or ETH for NU on Uniswap. You can also seamlessly trade the NU/USDT pair in the crypto spot market on Bybit by opening a trading account.
NuCypher provides a decentralized key management system, robust cryptographic services and a cryptocurrency with great potential — all at once. Mergers and acquisitions in the blockchain space are complex, and don’t happen often — so the impending merger between NuCypher and Keep Network could have a strong positive impact on the NU token price. The capabilities of the NuCypher protocol in offering innovative infrastructure to the decentralized environment — coupled with its ability to grant/revoke access to data on the network — will undoubtedly be valued by companies and institutions that are beginning to embrace blockchain technology. Crypto traders and crypto investors could also profit by jumping in at the right time.