NuCypher NuCypher Brief Overview

<p>NuCypher is a decentralized secret management network where a group of nodes (workers) perform proxy re-encryption to manage permissions on encrypted data instead of a centralized server. It allows safe data exchange without ability for proxies to learn the plain text info. Correctness of worker behavior is guaranteed by staking and cryptographic proofs. Additional token emission incentivizes node operators to maintain high availability infrastructure and in the case of network rules violation a portion of their holdings will be slashed.</p><h3 id="current-state-and-market-potential"><strong>Current state and market potential</strong></h3><p>NuCypher mainnet successfully launched on 15th October 2020 allowing token holders to stake their NU.</p><p>Privacy of sensitive data is a vexed problem and services provided by NuCypher project are attractive and valuable not only in crypto space. The highest growth of<a href=""> data breaches in USA</a> was in the healthcare sector demonstrating 80% increase from 2017 to 2019 including the transmission of confidential data without proper encryption.</p><p>Enterprises also are seeking ways to avoid data leaks and securely manage and share sensitive data.<a href=""> The Global Key Management as a Service Market</a> market size is expected to grow from $363 million in 2018 to $1,28 billion by 2023 and is estimated to reach $2,29 billion by 2025 during the period 2019–2025.</p><h3 id="token-allocation"><strong>Token allocation</strong></h3><p>NuCypher raised $750k in 2016 ; $4.3 million in 2017 and $10,7 million in 2018. The overall token allocation showed in a diagram below.</p><figure class="kg-card kg-image-card"><img src="" class="kg-image" alt srcset=" 600w, 1000w, 1600w" sizes="(min-width: 720px) 720px"></figure><h3 id="staking-economics"><strong>Staking economics</strong></h3><p>In order to participate in the network as a worker and perform re-encryption, node operators have to lock NU tokens. At the start rewards from providing re-encryptions might be low so until the project gets traction, node operators will be incentivized mostly by emission of new tokens. <strong>Holders can delegate their funds and earn a share of rewards in proportion to their stake.</strong></p><p><strong>Compensation is higher when tokens are locked for a longer period.</strong> To get maximum compensation stakers have to lock their funds for at least a year to be allowed to accept policies with longer terms. Shorter commitment will result in lower rewards for participants and they will not be allowed to provide re-encryption if the length of a particular policy is higher than chosen lock-up period. <strong>Staking since the beginning of mainnet with compounding of rewards also will result in higher returns.</strong> The whole stake can be split into sub-stakes where each will have its own lock-up period.</p><p>In existing representation only one staker can delegate to a worker in near future, staker can be a smart contract that accepts delegations from various addresses. We believe in future adoption of NuCypher and will provide the long term staking maximizing staking rewards.</p><figure class="kg-card kg-image-card"><img src="" class="kg-image" alt srcset=" 600w, 1000w, 1368w" sizes="(min-width: 720px) 720px"></figure><h3 id="native-token"><strong>Native token</strong></h3><p>NuCypher token NU is ERC20 token the main purpose of which is to act as a staking token in the network with limited liquidity and low volatility. Amount of provided re-encryptions will be proportional to stake which is guaranteed to be locked at the end time of the policy. Node operators with higher stake presuming higher loss in case of bad behavior and ability to accept policies with longer terms.</p><p>NuCypher based on Ethereum blockchain means that users should have ETH on the worker node’s address to pay tx fees. Workers also share service fees paid by end users in ETH for providing re-encryptions.</p><p>Over 350 000 ETH were locked in the smart contract by participants to take part in<a href=""> WorkLock token distribution model</a> proposed by NuCypher team.</p><h3 id="slashing-risks"><strong>Slashing risks</strong></h3><p>There are two potential slashing conditions:</p><ul><li>Providing incorrect responses</li><li>Continuous downtime</li></ul><p>At network genesis, the protocol will be able to detect and attribute instances of incorrect re-encryptions. If there are many sub-stakes and misbehavior occurs, unlocked tokens which do not participate in staking will be slashed in the first place and then ascending sub-stakes with lower lock-ups.</p><p>A false re-encryption is not like a double-sign. Correctness of a re-encryption can be proved via a zero-knowledge proof. If users receive incorrect re-encryption, they can provide this proof to the network, which will result in the node getting slashed. <strong>For each violation, 2×10−18 NU tokens will be deleted from the offender’s stake</strong>. <br><br>In the future, slashing parameters can be changed by the Decentralized Autonomous Organization (DAO) that is managed by NU stakeholders who operate nodes. It makes NuCypher a community driven project from the very beginning.</p><p>At network launch slashing for worker unavailability is turned off until it will be enabled by the DAO if needed. <strong>Stakers will not receive inflation rewards for any period the node is offline</strong>. A worker that doesn't timely apply updates and constantly experiencing downtime will also miss rewards.</p><h3 id="about-p2p-validator">About P2P Validator</h3><p><a href="">P2P Validator</a> is a world-leading non-custodial staking provider securing more than $3 billion by over 10,000 delegators across 25+ high-class networks. Our team has close connections with NuCypher and we have participated in the incentivized testnet since the beginning. P2P Validator invested its own funds in NuCypher project in 2017 and intends to support the network in the long term.</p><h3 id="useful-nucypher-resources"><strong>Useful NuCypher resources</strong></h3><ul><li>Website:<a href=""></a></li><li>Github:<a href=""></a></li><li>Docs:<a href=""></a></li><li>Whitepaper Technical:<a href=""></a></li><li>Blog:<a href=""></a></li></ul><hr><p><em>Want to stake NU with us? Alexey will be happy to help. Contact [email protected] to get personal assistance.</em></p><hr><ul><li><strong>Stake NU with us:</strong> <a href=""></a></li><li><strong>Web:</strong><a href=""></a></li><li><strong>Twitter:</strong><a href=""> @p2pvalidator</a></li><li><strong>Telegram:</strong><a href=""></a></li></ul>

Alex Bond

from p2p validator

NuCypher NuCypher Worker Node Monitoring Suite

<p>As part of the Technical Contributor Phase of NuCypher’s <a href="">Come And Stake It (CASI) Incentivized Testnet</a>, <a href=";utm_medium=economy&amp;utm_campaign=NuCypher-monitoring">P2P Validator</a> has collaborated with <a href="">NuCypher</a> to provide an inexpensive and powerful <a href="">suite of self-hosted NuCypher node monitoring and alerting services</a> using Prometheus and Grafana. This suite is free and open-sourced so that anyone can make use of it to manage their NuCypher node infrastructure.</p><h2 id="the-need"><strong>The Need</strong></h2><p>The NuCypher Network is a decentralized network of nodes that uses proxy re-encryption to provide secrets management and dynamic access control services. The network facilitates end-to-end encrypted data sharing between parties without exposing plaintext data or private keys to the nodes.</p><p>NuCypher nodes are incentivized to maintain high uptime and availability to readily provide re-encryption services. Persistent downtime will cause nodes to forgo inflation rewards and policy fees. Therefore, identification and resolution of availability issues quickly is a requirement. This solution is aimed at those who independently set up and run the Worker according to the <a href="">NuCypher documentation</a>, but who do not have enough experience to implement monitoring and alerting on their own. After successfully running a Worker node, the user should be able to check the state of their node and receive timely alerts about issues that need to be addressed immediately.</p><h2 id="the-solution"><strong>The Solution</strong></h2><p>Our goal was to provide a seamless setup, simple configuration and enable the user to obtain up-to-date information about their ongoing node operations and the broader NuCypher network. We implemented a Worker endpoint that provides various node metrics and a Grafana dashboard to allow users to visualize these metrics and assess the state of their node.</p><figure class="kg-card kg-image-card"><img src="" class="kg-image" alt srcset=" 600w, 1000w, 1240w" sizes="(min-width: 720px) 720px"></figure><figure class="kg-card kg-image-card"><img src="" class="kg-image" alt srcset=" 600w, 1000w, 1240w" sizes="(min-width: 720px) 720px"></figure><p>Metrics include:</p><ul><li>CPU / RAM / Disk / Network utilization</li><li>Realtime data on node workload</li><li>Account balances</li><li>Staker information</li><li>WorkLock status</li></ul><p>Furthermore, alerts can be provisioned based on these metrics through the dashboard to send timely messages when notable issues arise. Notification mechanisms include Telegram bots, SMS, phone calls, and email notifications. Additional functionality is provided to include images within alert messages and to configure reminders.</p><figure class="kg-card kg-image-card"><img src="" class="kg-image" alt srcset=" 600w, 1000w, 1206w" sizes="(min-width: 720px) 720px"></figure><h2 id="getting-started"><strong>Getting Started</strong></h2><p>To install Prometheus and run your Worker with the metrics endpoint activated, see <a href=""></a>.</p><p>To set up our monitoring suite, go to <a href=""></a>, and follow the instructions.</p><blockquote><em><em>To file bug reports or feature requests, please create an issue on our Github. If you are feeling adventurous feel free to submit pull requests.</em></em></blockquote><hr><p><em><em>Do not hesitate to ask questions in our <a href="">Telegram chat</a> or contact Alex via [email protected] We are always ready to help and open for communication.</em></em></p><hr><h1 id="about-p2p-validator"><strong>About P2P Validator</strong></h1><p><a href=";utm_medium=economy&amp;utm_campaign=NuCypher-monitoring">P2P Validator</a> is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities. At the time of the latest update, more than 3 billion of USD value is staked with P2P Validator by over 10,000 delegators across 25+ networks.</p><p></p><p><strong><strong>Web:</strong></strong> <a href=";utm_medium=economy&amp;utm_campaign=nucypher-monitoring"></a></p><p><strong><strong>Stake NU with us:</strong></strong> <a href=";utm_medium=economy&amp;utm_campaign=nucypher-monitoring"></a></p><p><strong><strong>Twitter:</strong></strong> <a href="">@p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong> <a href=""></a></p>

Pavel Pavlov

from p2p validator