View source for Nym (NYM)

A communication infrastructure network supporting network-level privacy through the [https://nymtech.net/ Nym mixnet].

==Basics==

*Based in: [https://decrypt.co/202861/andreessen-horowitz-backs-nym-300m-privacy-centric-innovation-fund Switzerland] (24-10-2023)
*Started in / Announced on: [https://twitter.com/nymproject/status/1365340929469652992 Summer 2018]
*[[Mainnet]] release: [https://messari.io/report/understanding-nym 2021] 
*According to [[Figment]] Weekly Digest (2-3-2021): ''"A private Internet infrastructure project"''

==History==
==Audits & Exploits==
* [[Bug bounty]] program can be found [insert here].
===Bugs/Exploits===
==Governance==
===Admin Keys===

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"Nyx, a sovereign [[Cosmos (ATOM)|Cosmos]] [[Layer 1|Layer-1]] blockchain, supports the Nym mixnet. Nyx is expected to be de-[[permissioned]] in 2024."''

===DAO===
===Notable Governance Votes===
===Treasury===
==Token==
===Launch===

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"In 2022, the NYM token, employed to incentivize the mixnet, was launched through an initial coin offering ([[Initial Coin Offering (ICO)|ICO]]) on [[CoinList|Coinlist]] (7.5%). NYM was initially distributed as an [[ERC20 tokens|ERC-20 token]] and still exists as so. [[Ethereum (ETH)|Ethereum]] ERC-20 NYM can be [[bridged]] to native [[Cosmos (ATOM)|Cosmos]] NYM through [[Centralized Exchanges (CEX)|centralized exchanges]], but Nym Technologies is also building a swap functionality in the Nym [[Wallet]]."''

===Token Allocation===

* The Team and backers [https://messari.io/report/understanding-nym got] 57%, CoinList ICO 7%, "reserve" 11% and Mix-Mining 25%. NYM has a total supply of 1 billion and a circulating supply of ~550 million as of September 2023. NYM that was set aside for founders, backers, validators, and Coinlist buyers will be fully vested in May 2024.

===Utility===

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"The NYM [[Utility Token|utility token]] serves the following functions for the Nym mixnet and the Nyx blockchain:''

# ''Access to the mixnet.''
# ''Paying Nyx [[Transaction Fee|transaction fees]].''
# ''Pledging to mix node operators as an initial reputation score.''
# ''Paying Proof-of-Mixing rewards to mix node operators."''

===Other Details===
===Stablecoin===
==Coin Distribution==
==Technology==

*[[Whitepaper]] can be found [https://nymtech.net/nym-whitepaper.pdf here] (26-2-2021).
*Code can be viewed [insert here].

===Implementations===

*Built on: [[Cosmos (ATOM)|Cosmos]] SDK
*Consensus mechanism: PoA now, will move to BPoS ([https://messari.io/report/understanding-nym 26-10-2023])
*Algorithm:
*[[Virtual Machine (VM)|Virtual Machine]]:  CosmWasm virtual machine ([[Virtual Machine (VM)|VM]]).
*Development language used: CosmWasm supports [[Rust]] and [[Go]], as they compile to Web Assembly ([[WebAssembly|WASM]]). 

====Transaction Details====

*Capacity ([[TPS]]):
*[[Latency]]:

===How it works===

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"Nyx is currently permissioned, with a [[Proof-of-Authority (PoA)|Proof-of-Authority]] consensus mechanism run by current validators, but it is planned to move to a permissionless Bonded-Proof-of-Stake (BPoS) mechanism.'' 

''The Nym mixnet serves as a modular addition to any internet application, introducing transport layer privacy for a diverse user base. Coupled with the Nyx blockchain, it’s a DePIN project focused on fostering private, secure communication infrastructure. Nym exists as a tool to facilitate private internet communication between any applications, like a VPN, and so, it is not exclusive to blockchain-related activities.'' 

''There are three components to the Nym ecosystem:''

# ''The Nym mixnet — a modular, private communication network''
# ''Zk-nyms — an anonymous credential system''
# ''The NYM token — a cryptocurrency''

''These technologies are supported and leveraged by Nyx, a sovereign, general-purpose Layer-1 blockchain with a CosmWasm [[Virtual Machine (VM)|VM]]. Nyx supports Nym in several ways:''

# ''By ensuring that the mixnet network directory is [[decentralized]] and [[permissionless]].''
# ''By operating the [[tokenomics]] of the mixnet to incentivize and reward operators for providing privacy instead of grabbing user data.''
# ''By facilitating the vesting of the NYM token.''

''Nyx’s main feature, the Nym mixnet, is a general-purpose piece of infrastructure that can be used for any kind of online communication, such as browsing the internet, messaging on [[Telegram]], or broadcasting [[Transaction (Tx)|transactions]] to blockchain networks. Nyx [[Smart Contract (SC)|smart contracts]] keep track of the decentralized directory authority of Nym mix [[Node|nodes]] on the network."''
* From the [https://nymtech.net/nym-whitepaper.pdf whitepaper] (26-2-2021):

''"The Nym network ("Nym") is a [[decentralized]] and incentivized infrastructure to provision privacy to a broad range of message-based applications and services. The core component of Nym is a mixnet that protects network traffic metadata for applications, providing communication privacy superior to both VPNs and [[Tor Project|Tor]] against global adversaries that can watch the entire internet. [[Nodes]] in the mixnet are rewarded via a novel proof of mixing scheme that proves that mix nodes are providing a high quality of service. Rewards given by NYM [[tokens]] allow anyone to join the Nym network and enable a sustainable economic model for privacy. NYM tokens can be transformed into anonymous credentials that allow users to privately prove their "right to use" services in a decentralized and verifiable manner. The Nym network can serve as the [[foundation]] for a vast range of privacy-enhanced applications that defend the fundamental freedoms of people across the [[globe]] against traffic analysis by powerful adversaries."''
===Upgrades===

=== Mining ===

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"Mix nodes use a novel [[Proof-of-Work (PoW)]] scheme called Proof-of-Mixing (PoM). PoM samples the network randomly and rewards mix [[Node|nodes]] for mixing traffic using a [[VRF]]-based cryptographic scheme. The system guarantees fairness by taking advantage of the Sphinx packet format, which makes all packets, even those from cover traffic, indistinguishable from each other.''

''As of September 2023, there are ~600 total Nym mix nodes. Of those total nodes, 240 are selected as active for every epoch in order to maximize the rewards and efficiency of the system. The number of active nodes scales as demand scales. The selection of active nodes is fully decentralized and is based on a mix node's reputation (measured by their total [[Staking|stake]] in NYM tokens) and performance."''

===Staking===

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"Once de-permissioned, the Nyx blockchain will be supported by a decentralized and permissionless network of validating nodes, known as validators. These Nyx validators will be similar to PoS validators on other Interchain networks and PoS blockchains in general. Nyx validators will run a BPoS consensus mechanism built with CometBFT. Holders can delegate their NYM tokens to Nyx validators with no bonding or unbonding period."''

====Validator Stats====

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"As of September 2023, the Nyx network is still [[permissioned]], and the [[Proof-of-Authority (PoA)|PoA]] validators are run by Nym Technologies and its partners. At the moment, there are [https://nym.explorers.guru/validators 34 active] Nyx [[validators]]."''

===Liquidity Mining===
===Scaling===
===Interoperability===

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"Nyx's use of the [[Cosmos (ATOM)|Cosmos]] tech stack also ensures compatibility with [[IBC (Inter-Blockchain Communication)|Inter-Blockchain Communication (IBC)]]. Nyx inherently offers privacy through zk-nyms, allowing confidential execution of payments, voting, and other transaction types. Its IBC connectivity facilitates seamless access to privacy features for users across various Interchain networks."''

===Other Details===
==Privacy Method==

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"Nym is built upon the [https://www.youtube.com/watch?v=R-yEqLX_UvI Loopix] anonymity system, a mixnet designed to balance high anonymity levels and low latency. Loopix employs "continuous mixing," where messages are continuously processed and forwarded, reducing latency compared to conventional mixnets.''

''The [https://blog.nymtech.net/sphinx-tl-dr-the-data-packet-that-can-anonymize-bitcoin-and-the-internet-18d152c6e4dc Sphinx] packet format serves as a secure and efficient method for encapsulating and encrypting data while it navigates through the mixnet. Sphinx encompasses encryption, packet structuring, and onion routing functionalities. Data is subjected to Sphinx-format encryption before it reaches mix nodes, and, importantly, all encrypted packets appear indistinguishable to the mix nodes. [[Bitcoin (BTC)|Bitcoin’s]] [[Lightning Network]] also uses Sphinx, although it does not implement mixing or routing entropy, limiting its privacy.''

''Under Nym's "continuous mixing" approach, messages are continually processed rather than waiting for fixed batch sizes. If packets were not continuously mixed, there exists a potential vulnerability for adversaries to discern user patterns. Consistent messaging timings or cadences could allow adversaries to probabilistically deduce user information over time. To counteract this, dynamic cover traffic is introduced throughout the network. Users within the mixnet automatically transmit cover traffic in the Sphinx packet format. Each cover traffic packet is binary-indistinguishable from others, just as real packets are. When users transmit actual data, it becomes concealed amid the continuous flow of decoys. The dynamic nature of cover traffic means it diminishes as real traffic enters the network. This setup prevents adversaries from detecting linear increases in packet output that could reveal genuine communication patterns."''

==Compliance==
==Oracle Method==
==Their Other Projects==
==Upgrades==
==Roadmap==

*Can be found [Insert link here].
==Usage==
===Projects that use or built on it===

* [[NEAR (NEAR)|Near]] will [https://cointelegraph.com/news/near-partners-with-nym-for-privacy-encryption-services integrate] Nym Technologies’ data privacy and encryption services for users and DApps operating across its ecosystem (1-11-2023).

==Competition==

* From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):

''"The Nym mixnet improves on the security offered by VPNs and onion routers primarily through three features:''

# ''Indistinguishable packets: All traffic is encrypted to look the same so adversaries can’t follow individual traffic.''
# ''Mixed packets: All traffic is reordered so that adversaries can’t simply count what goes in and what comes out to statistically de-anonymize users.''
# ''Cover traffic: Adversaries will always see a constant flow of traffic, supplemented by fake packets, to avoid revealing patterns about when a user is sending real packets.''

''Compared to centralized VPNs, Nym's mixnet introduces additional steps, rendering it slower. Its current data transfer time is 500 ms, as opposed to as low as 20-50 ms for VPNs. While Nym is an order of magnitude slower than its competitors, 500 ms remains relatively performant. Half a second is generally inconsequential, especially for broadcasting payment transactions. Core contributors are working to further reduce Nym's [[latency]]. The Nym team’s goal is to bring latency down to 300 ms.''

''There are a handful of competing decentralized technologies on the market, including''

# ''Lokinet: an incentivized private communication network built on the [[Oxen]] blockchain and supporting applications such as Session. Lokinet uses Garlic Routing (also known as Invisible Internet Project / I2P), an extended version of onion routing, and is therefore technically not a mixnet''
# ''[[HOPR (HOPR)|HOPR]]: a mixnet that uses a P2P architecture rather than a layered topology, which Nym [https://blog.nymtech.net/hopr-network-design-and-flaws-a-system-analysis-43c1d244a779 claims] is less private.''
# ''Elixxir: a postquantum secure mixnet that parallelizes cascade layers. Nym compares and contrasts their network [https://blog.nymtech.net/how-nym-improves-on-traditional-mixnet-designs-219cd36724a0 here].''
# ''dVPNs: Orchid, Sentinel, and Boring Protocol are all incentivized decentralized VPNs that offer less privacy than a mixnet."''

==Pros and Cons==
===Pros===
===Cons===

* Gave [https://messari.io/report/understanding-nym most of the supply] to insiders with short lockups, which can be seen in their [https://www.coingecko.com/en/coins/nym price chart] as well (10-2023).

==Team, Funding, Partners, etc.==
===Team===

*Full team can be found [here].
*From a [[Messari]] [https://messari.io/report/understanding-nym report] (26-10-2023):
''"The organization is under the leadership of CEO Harry Halpin, COO Alexis Roussel, Head of Research Ania Piotrowska, and Chief Scientist Claudia Diaz. Nym Technologies cofounded the [https://privacyalliance.com/ Universal Privacy Alliance], an industry alliance of crypto-related entities committed to advancing, educating about, safeguarding, and engaging with privacy technology to establish it as the industry standard. Advisors to the team include Aggelos Kiayias, Bart Preneel, Ben Laurie, George Danezis, Carmela Troncoso, and Andres Arauz."''

===Funding===

* Has [https://decrypt.co/202861/andreessen-horowitz-backs-nym-300m-privacy-centric-innovation-fund raised] a total (24-10-2023) of $24.9 million in funding, including the $13 million Series A round led by [[A16z crypto|a16z]].
*Brought in outside backers for [https://twitter.com/TheBlock__/status/1521173453235265542 $300 million] developer fund (3-5-2022). [https://decrypt.co/202861/andreessen-horowitz-backs-nym-300m-privacy-centric-innovation-fund Backed by] (24-10-2023) Nym Technologies’ venture capital investors such as [[Andreessen Horowitz]] (a16z), [[Polychain Capital]], [[Greenfield]], [[Huobi (HT)|Huobi]] Incubator, [[Eden Block]], [[Hashkey Capital|HashKey Capital]], [[Figment Networks|Figment]], [[Fenbushi Capital]], [[OKX (OKB & OKT)|OKX]] Blockdream Ventures, [[Kryptonite1|KR1]], and [[Lemniscap]].
*Has [https://twitter.com/nymproject/status/1365340929469652992 funding] from [[Binance]] Labs (27-2-2021).

===Partners===
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