Orchid, a Virtual Private Network provider, has announced its plan to roll out a token-powered (OXT) network and an application during the first week of December. The company majors in offering decentralized VPN and is also a platform where node providers can trade in tokens for advertisements using the Ethereum blockchain tech.
“We will be launching one of a kind App that will operate based on the use of native tokens,” said Steven Waterhouse, the CEO at Orchid. Users will use the OXT token to pay for Bandwidth offered by node providers. These tokens will be generated at the launch, and the system operates based on a staking model.
According to Waterhouse, the company will have between five to ten node providers during the launch. The node providers will include both the new crypto technology and the traditional VPN space. Waterhouse adds that the initial offer was meant to boost the early stages of the system.
Virtual Private Networks have in use by millions of people globally for internet browsing. However, the VPN space is faced with the challenges of a centralized authority.
The company has managed to raise about $48 million through a number of investments since 2017. The major investors with Orchid include Sequoia, Andreessen Horowitz, Polychain Capital, and Blockchain Capital. Brad Stephens, Blockchain Capital’s managing partner said,
“To secure communication and privacy from state surveillance, VPN spaces should be decentralized. Orchid has illustrated the importance of VPN decentralization. We have worked with the company as an investor and advisor since 2017.”
The only problem facing the company has been to secure token-powered platforms by wholesale adoption. One of the investors, without any stake in Orchid, though, told CoinDesk that priority-payment tokens such as OXT and utility tokens are not a strong incentive to attract investors and without the investors, it is hard to have a significant value.
Waterhouse, however, defends the company’s token project saying that it has been developed with the investors’ best interests in mind. “We have been focusing on building the platform in the Web3 world,” says Waterhouse. The major objective is to develop a user experience based on privacy and one that is easy to understand and appealing to its users.