Learn about the potential of Decentralized VPN

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2022-07-24 06:55:03

Learn about the potential of Decentralized VPN

Learn about Decentralized VPN

Learn about VPN

First, you need to take some time to learn about the concepts. VPN – Virtual Private Network is a technology that allows users to create a virtual private network when connecting to the Internet.

VPNs can be used to access geo-restricted websites, protecting your browsing from “prying” on public Wi-Fi by setting up a virtual private network. for you.

How VPN Works

When you connect your computer (or other devices such as smartphones or tablets) to a VPN, the computer will act as if it were a local connection like a VPN. All network traffic will be sent through a secure connection to the VPN.

How VPN Works

Using a VPN brings many advantages such as:

  • Your personal traffic is encrypted and transmitted securely over the Internet. This keeps you away from Internet threats.
  • VPNs make it difficult for hackers to penetrate or interfere with the work of individuals or businesses.
  • You can safely use public Wi-Fi and not have to worry about hackers, and can securely connect remotely to the server.
  • With such a high security program, you can be completely anonymous when surfing the web. Not only that, most VPNs also have an easy-to-configure interface that can be manipulated by those who are not tech-savvy.

In fact, the current VPN has been used very popularly, creating many big companies in the world such as ExpressVPN, Surf Shark …

However, traditional VPNs still have many disadvantages, one of which is that users’ data is controlled by service providers. While a VPN hides your online behavior from your ISP and the websites you visit, the VPN operator itself is technically ready to see everything you do. This can make the user unsafe if this data is hacked or misused.

With the development of blockchain technology, the emergence of decentralized VPN service providers has contributed to solving the above problems.

What is Decentralized VPN (Decentralized VPN)?

Decentralized VPNs – also known as dVPN, P2P VPNs or, more rarely, DPNs – solve the drawback of traditional VPNs as users will connect not to a proprietary server, but to what is called is the “button”. A node could be a server, but it could also be someone’s phone or laptop, or even a desktop computer idling in an office somewhere.

Most Decentralized VPN service providers will have two types of plans: those that allow you to earn credits by allowing others to route through your device, and those that allow you to pay for access such as: with a regular VPN.

Because the network is decentralized – another word often used is “serverless” – there is no single authority that can gather information about what you are doing. Best of all, dVPN is a dApp that runs on top of Ethereum, making it possible for everyone to see how they work while your data is kept safe.

Current Decentralized VPN Market Review

According to the data of Globenewswire, in 2021, the VPN market in the US is estimated to reach 14.3 billion USD in 2021. The country currently holds 34.83% share of the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of $11.2 billion by 2026 at a CAGR of 17.4% during the analyzed period.

Among other notable geographic markets are Japan and Canada, each of which is forecast to grow at 12% and 12.8% respectively during the analyzed period. In Europe, Germany is forecast to grow at a CAGR of around 12.1% while the rest of Europe will reach $12.9 billion by the end of the analyzed period. Developed economies are the leading markets for VPNs worldwide. According to this website, the global market size of VPNs could reach more than $77 billion by 2026.

The reason VPN markets continue to grow is due to the increased risk of cybercrime and the need to protect business data. Widespread adoption of digital technologies and increasing cyberattacks are driving the demand for VPN services. Europe is another large regional market for VPNs, with widespread adoption of advanced digital technologies in the region, driving market growth.

From the above assessment, you can see, any project that is “leading” in this market niche can explode and become a giant in the future. In addition to the traditional VPN market, dVPN projects in crypto are also starting to build and develop. Let’s take a look at some of the prominent names right below!

Some typical projects

Orchid Protocol (OXT)

Source: Orchid

Orchid is a project built on Ethereum, providing a decentralized VPN service, allowing users to buy bandwidth from a global group of service providers.

How it works

  • First, users need to download the Orchid app and then join the Orchid Market.
  • Next, users buy bandwidth from organizations that sell bandwidth, which help ensure the safety and anonymity of users accessing the Internet as a VPN.
  • The bandwidth is sold in Ochird Token, users can access the Internet through VPN after completing the bandwidth purchase.

For example: When you log in to a social network like Facebook, if you enable Orchid, Facebook cannot detect your IP address and physical location even though it still knows who you are.

In the process of accessing the Internet, Orchid allows to link many nodes together, making it impossible for VPNs to collect user information fully.

OXT is Orchid’s token. OXT is used for the following main purposes:

  • Bandwidth providers will have to deposit a certain amount of OXT to operate Orchid Nodes. The more OXT staking, the more in-network rewards can be obtained by the service provider.
  • Users can use OXT to pay when using the service.

Sentinel (DVPN)

Sentinel is a Decentralized VPN project built on the Cosmos ecosystem. Sentinel allows service providers and individuals with unused bandwidth to participate in making money by becoming miners on Sentinel’s bandwidth-sharing network.

Sentinel’s operating model is based on sharing and synchronizing data in the network. All dVPNs built on Sentinel utilize the shared bandwidth of Sentinel’s global community of dVPN node hosts, which is covered by the capacity currently available. Each new dVPN will build on top of Sentinel which will help recycle more and more bandwidth, while reducing costs for consumers.

Sentinel’s operating model. Source: Sentinel

DVPN is the project’s native token, with 3 main features:

  1. Administration
  2. Staking to participate in providing bandwidth, receiving rewards
  3. Payment for services

Boring Protocol (BOP)

Boring Protocol is a dVPN service built on Solana. Unlike Orchid and Sentinel, Boring is hardware-based.

The basic way Boring Protocol works: Bandwidth providers will stake BOP tokens (governance tokens).

Providers sell bandwidth and stake BOP so that network users’ traffic is redirected to their node. When the network connection is guaranteed to operate and remain stable, the providers will be rewarded with a certain percentage of BOP tokens.

Compare some dVPN projects on the market

Comment

The combination of VPN offering and blockchain technology is a huge step forward that could change the way the VPN industry is run. The biggest advantage of dVPN projects is to really ensure the “confidentiality” of users’ actions and data, something that traditional companies have not been able to do.

However, the major barriers for these projects are also quite a few:

Competition

As projects born late and limited to the crypto market, having to spend a lot of resources on marketing, educating users and attracting users is a long way, especially when not everyone understands. Know and operate familiar with crypto wallets or transactions.

Economics in the project

Most tokens in the form of dVPN projects have quite a few bull-cases. The only bull-case is when more customers use the service => more providers buy tokens and staking. However, before attracting customers, providers need to staking first and must have enough bandwidth. This is a pretty big obstacle.

Currently, dVPN projects on crypto are quite limited. However, this will also be an opportunity for us to continue to research and invest in good projects when they are “cheap”. What is your opinion about dVPN? Leave a comment to discuss!

Poseidon

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