Orchid (OXT) is a digital asset that powers the Orchid network, a decentralized, peer-to-peer privacy network. Orchid aims to address internet freedom limitations by enabling anyone to purchase bandwidth from any participating provider using cryptocurrency payments. Orchid's native token, OXT, is an ERC-20 standard token on the Ethereum network, which is used for probabilistic nanopayments. Orchid's service is pay-per-use, meaning users only contribute funds when they connect, rather than paying recurring fees. This approach strives to enhance the user experience of VPNs by offering anonymous usage that doesn't rely on a centralized server.

Orchid operates by using blockchain technology with the aim of improving the VPN experience. Through the use of cryptocurrency-based probabilistic nanopayments, users can enjoy anonymous VPN usage that doesn't depend on a centralized server or the risks associated with a specific country's infrastructure. Regular payments to providers occur off-chain, which allows Orchid to bypass issues related to congestion and gas fees on the Ethereum network. Orchid also offers a feature that allows users to purchase "Orchid credits" with fiat currency. In this case, OXT cannot be withdrawn and converted elsewhere, only spent with network providers. This feature seeks to appeal to those who do not wish to transact in cryptocurrency.

Orchid's potential use cases extend beyond the cryptocurrency community. Developers highlight a growing trend for internet freedom in the face of increasing geopolitical tensions and local restrictions. Orchid uses Web 3.0 technology to provide some semblance of an open internet, as it was conceived when consumer access began to go mainstream in the early 1990s. Orchid's approach to VPN usage, which doesn't rely on a centralized server, aims to offer users enhanced privacy and security. Additionally, the ability to purchase bandwidth from any participating provider using cryptocurrency payments can provide users with greater flexibility and control over their internet usage.

Orchid was launched in December 2019 by four co-founders with backgrounds in the blockchain and financial sectors: Dr. Steven Waterhouse, Jay Freeman, Brian J. Fox, and Gustav Simonsson. Waterhouse, a figure within the cryptocurrency industry, also co-founded venture capital firm Pantera Capital. Freeman is the creator of Cydia, an alternative Apple App Store for jailbroken Apple devices, while Fox created Wells Fargo’s first interactive online banking system in the mid-1990s. Simonsson is one of the Ethereum network’s core security developers, having helped with its original launch in 2015. The idea for Orchid was born out of Waterhouse's personal experience with a SIM-swap attack, which led him to research VPN technology.

Orchid employs a decentralized, market-based system for anonymous communication and virtual private networking. It uses a bandwidth market where node providers allocate tokens to make their services visible using the Ethereum blockchain and are acknowledged with OXT, Orchid’s native cryptocurrency. Orchid's technology is highly modular, with each component intended to interact well within the larger ecosystem. Orchid uses a custom VPN protocol, similar to OpenVPN or WireGuard, designed for high-performance networking and runs on top of WebRTC, a common web standard. Orchid's structure uses a new probabilistic nanopayment system intended to allow the system to scale to potentially millions of transactions per second, enabling decentralized acknowledgements on a per-packet basis. This nanopayment system is the foundation of the Orchid peer-to-peer bandwidth marketplace where clients acknowledge Node operators with OXT lottery tickets in exchange for proxy bandwidth. The system is intended to streamline the process for small acknowledgements by spreading the process across many acknowledgements and even across multiple parties.

Orchid's payment protocol operates as a decentralized network of VPN service providers where users utilize OXT tokens for bandwidth. This system enables users to utilize only the bandwidth they consume, rather than a set fee or subscription, which is often the model with centralized VPN providers. Orchid uses a probabilistic nanopayment structure that utilizes micropayments from your OXT wallet for internet usage. These micropayments do not occur on the Ethereum blockchain, which solves for Ethereum’s limited processing power. Instead, they occur continuously as you browse and are reconciled approximately once a week on the blockchain. This structure enables Orchid to cater to millions of users at a time. It incorporates a layer of security by limiting exposure of user information when interactions for service are recorded on the public blockchain.

Orchid aims to provide users with a decentralized solution that focuses on privacy and security in the digital world. This is facilitated through the use of Orchid's native cryptocurrency, OXT. Orchid's decentralized architecture aims to reduce the role of central authorities, fostering a peer-to-peer network that thrives on transparency and security. It also integrates blockchain technology to establish an immutable ledger, recording transactions in a secure and tamper-resistant manner. The intention is for users to navigate the digital landscape without compromising their identity. Orchid's integration of decoy traffic is intended to provide an extra layer of privacy, making it challenging for external entities to trace and monitor user behavior. Orchid strives to offer users a blend of privacy, decentralization, and innovative applications, positioning it within the cryptocurrency space.

Orchid's OXT token is utilized in incentivizing both bandwidth providers and users on the network. Bandwidth providers, also known as nodes, stake OXT tokens in an Ethereum smart contract to advertise their services to clients. The size of the OXT stake may influence the direction of customers to a given VPN provider. A provider's OXT stake and their potential rewards have a relationship. On the other hand, users compensate for bandwidth from providers in the network using OXT. This pay-as-you-go model using probabilistic nanopayments ensures that users compensate for the bandwidth they actually use, potentially influencing costs. The interplay between Orchid and its payment system enables users to access the internet through one or more trusted VPN providers.

Orchid's OXT token has applications beyond VPN services. It's designed to power a decentralized, peer-to-peer network that aims to enhance digital privacy. The Orchid Protocol uses OXT to facilitate the exchange of bandwidth, enabling users to access content outside of their geographical location. This decentralized design and open-source principle aim to enhance digital privacy for users. The protocol also establishes a decentralized VPN marketplace where Orchid node operators provide bandwidth to users who require anonymity. This model seeks to improve the current model of open private Internet access, creating an incentive model for users to provide these services online. The OXT token is integral to Orchid's system of probabilistic nanopayments, which optimizes cost control, operation speed, and scalability while reinforcing privacy for users. This system reduces transaction fees and maintains low latencies, making it a potential contributor in the realm of digital transactions.