NuCypher is a software that aims to become a protective layer for decentralized applications. It is considered a KMS or Key Management System that leverages blockchain technology to allow data owners to share data whit a large community of users in a safe manner. Using this privacy layer, developers can store and manage data on the blockchain. Different types of applications from healthcare systems to content marketplaces can benefit NuCypher as a secure infrastructure for managing private data.
Here we will talk about everything you need to know about this layered protocol that runs on Ethereum. Stay tuned and decide about investing in this token today. NuCypher is a new way for sharing and managing data that will enable developers to create decentralized applications. Learn more about the unique features of this software before investing in any other cryptocurrency.
What is NuCypher?
NuCypher is a proof of work-based project built on the Ethereum network. The NuCypher network provides developers with two core services.
The first is Secrets management, which stores sensitive data, like passwords and private keys. The second one is Dynamic Access Control which grants or cancels access to data.
The users are incentivized by the platform’s governance token, which is called NU. The participant receives NU for keeping the network secure and safe. There is a total supply of 3.89 billion NU in the network.
The history of NuCypher
MacLane Wilkison and Michael Egorov designed NuCypher in 2015. The initial purpose was to create data protection that enables developers to transfer information securely.
The platform uses the Proxy Re-Encryption that aims to decrease data leaks. In 2017 the founder decided to benefit from smart contracts, so they transit the platform to the blockchain.
What is proxy re-encryption?
Proxy re-encryption is public-key cryptography that changes ciphertext from one public key. The process can be done automatically. This type of proxy is the best for decentralized and blockchain networks. In this system, nodes should not be trusted with decryption keys. The NuCypher uses a unique way of choosing proxy nodes that will not jeopardize the nature of blockchain essence.
The purpose of NuCypher
The main purpose of building this platform was to address three use cases, including Secret management, Dynamic Access control, and Secure Computation.
- Secret management is about managing secrets, SSH credentials, certificates, and Encrypted keys.
- Dynamic Access control is the ability to conditionally provide or disrupt access to data.
- Secure Computation ensures the confidentiality of the input and result while processing the data.
NuCypher aims to reach the above proposes, and it will develop new uses cases in the future. What other use might there be for this network? What do you think?
How does NuCypher work?
NuCypher provides different protocols for using cryptographic services to save and share data securely. The system uses two network sets, Umbral for secrets management system and dynamic access control services and Ursula for operating nodes.
Umbral is an encryption scheme for sharing and keeping data privately and securely. Ursula is a proxy node that will grant data receivers decryption rights. The proxy nodes re-encrypt data for the receiver. Proxy nodes stake these NUs to perform this task and earn a reward. There will be a penalty for every mistake, and the user might lose part or all of his locked NU. They are also rewarded in ETH for keeping the platform safe and secure. Besides, as the NuCypher is a layer-two project built on Ethereum, users can always exchange Nu tokens for Ethereum tokens. On the other hand, NU can be used in all Ethereum-based applications.
What is WorkLock?
This is a new node distribution mechanism used to run the NuCypher network. The WorkLock participants stake ETH to receive NU tokens. Then they can run Ursula or proxy nodes.
The WorkLock is designed as a mimic of the proof of work mechanism. The locked-up period for ETH depends on the work performed by the proxy node.