What is Nucypher (NU)?

The Nucypher platform deals with an array of applications that help secure encrypted data through Nucypher's cryptographic infrastructure. Nucypher works towards eliminating complexities faced by data security service providers, and seeks to promote cryptographic access control and the decentralization of the Nucypher platform. Since cryptographic access control lets users have full access to their encrypted data, it could also reduce dangers of data misuse.

To understand Nycypher platform, one must also understand the Key Management System (KMS). KMS refers to managing any environment created by cryptographic keys. KMS service providers sometimes face difficulties securing encrypted data, owing to the high upfront security cost and an array of high-level technical implementation requirements. 

To ease some of the problems faced by KMS service providers, Nucypher platform offers a decentralized network. The platform also lets users have cryptographic access control through a Proxy Re-Encryption (PRE) or PRE-based KMS. Moreover, Nucypher distributes heavy incentives within its platform to encourage reliability and truthful data sharing amongst its user base.

Nucypher's blockchain based platform involves both Developers and Enterprises to create DApps. These secured DApps cater to financial institutions and the healthcare sector by offering an encrypted content marketplace, secret credentials management, and patient-controlled electronic health records.

The native token on the Nucypher platform is known as NU. It is an ERC-20 token. Nu token is used within the Nucypher platform to reward miners (awarded for completing work) and to pay for data security service renewal. 

What is the history of Nucypher? 

Nucypher was founded by MacLane Wilkison and Michael Egorov in 2015. However, the genesis release (v0.1.0-alpha.0) in Jan 2019 marked an internal version of the Nucypher network. The Nucypher network is backed by investors such as Y Combinator, Semantic Ventures, CoinFund, Notation Capital, etc11.

How to earn NU tokens?

The staking operation of Nucypher has two roles, the Staker and the Worker. The Staker holds NU and collects rewards. At the same time, the Worker bonds with the Staker to perform work on behalf of the Staker. Therefore, the Stakers of NU can earn fees paid in ETH by users in the network. Additionally, they can also earn NU as an inflation subsidy. Thus, the nodes on the network are incentivized through a combination of NU tokens and ETH. The Stakers also participate in the Nucypher DAO (decentralized autonomous organization), which governs the network.

Initially, Nucypher distributed nodes to the stakers through their ‘WorkLock’ model5. WorkLock, developed by Nucypher, provided a permissionless opportunity to stake ETH, run nodes, and earn NU. However, the participation in WorkLock is now closed.