Keep your data chained. Blockchain keeps it safe!

Maciej Zieliński

18 Dec 2019
Keep your data chained. Blockchain keeps it safe!

Julia Wolińska

The top corporations agree about our predictions concerning the future. Every year we hear more and more promises about the Internet of Things, which is going to make us forget about all our issues... even if we did not know about their existence!

After leaving the work you are going to get into your car, which is going to bring you right to the address of your home. With only a single touch you can turn on the lights and check if the current contents of your fridge can satisfy your cravings. Just remember not to drink your coffee – your health monitoring app will make sure that you don’t succumb to unhealthy habits and it already knows your blood pressure should not be too high! It is just hard to believe that the internet alone can make your life so much more convenient

However, the moment you lay down on your comfy sofa, something else happens. During the synchronisation of data from your virtual debit card and your navigation app, you are not the only one gaining the info from them. Your actions are actively being watched by hackers. They are making sure that they know your address and the time you are leaving your house.

While it can really sound like a vision from some science fiction thriller, it’s entirely possible that the incoming technological revolution will lead to such circumstances. The question appears; would we surrender our privacy for an access to incredible convenience?

You could, however, also protecting your data. Then you would not have to expose yourself to potential data theft and use all of the miracles of technology without a single worry. How, you my ask? The answer lies in the block of chains.

Vulnerable data and its risks

Take a moment to consider how does the information flow within your family and friend groups. Well, naturally, it is usually done by verbal exchanges which usually letyou know about their customs, preferences and habits. During conversations, you and your friends gather data about each other, you learn about the music you listen to, what do you want to eat for dinner or if you are allergic to peanuts.

As it turns out, the domestic appliance or even car manufacturers wish to initiate the same dialogue with you - they want to get to know you as well as your friends and family do through the power of internet. They are aiming to adapt their appliances to improve your experience with them and they want to do that by gathering the necessary data about your everyday life.

However, the problem arises the moment we are talking about the vulnerable data. It is for example your address, information about your bank accounts or investments, your workplace or data about your customers, details about your health. This is the data that should not ever be revealed to any unwanted third parties but are often unfortunately under the attack from hackers.

It turns out that if your everyday use devices are connected to the internet, it is possible to hack not only your computer or your laptop but also your domestic appliances and car.

IoT nie jest bezpieczny bez blockchaina - ochrona danych

More often do the voices appear that the internet in its modern form is not a good foundation for the absolutely humongous network of the internet of things. That is why the research has begun to find a safer, more anonymous medium which would not be as vulnerable towards the attacks. The experts believe that no other technology than the one offered by the blockchain would suffice to pull this task off.

Blockchain - the way to keep the IoT safe

Blockchain was made viral during the time of the cryptocurrency boom in 2016. However, there is still a lot of people who find the concept quite enigmatic. It is often wrongly associated with the phenomenon of Bitcoins. After all, the usability of the blockchain goes far beyond the financial sector. We can briefly say that it is a kind of technology which is used to gather the data about our transactions on the internet safely and anonymously.

Blockchain is a database which is formed by the chain of the blocks connected to it, which it derives its name from. Each and every individual block is connected to next one. What’s important is that all the gathered and saved information are not stored onone server or on one device – they are scattered and encrypted and their anonymouscopies are held inside of multiple locations. Thanks to this method the risk of hacking or stealing such data is equal to zero.

The public registry can be presented as a giant piece of paper which holds every single data concerning your address, financial data or even health which was copied and sent to multiple locations around the world. Those pieces of paper are interconnected in a cryptographic way. They are constantly compared and “prescribed” on new datasheets. That means that the mathematic properties can assure that they cannot be removed, replaced or completely altered.

The mechanism does not only help us fight against the scams, but also allows us to learn about the external conditions such as the weather, which can be also verified by the use of the modern systems.

Chained data- how to keep it safe

According to the most recent report „IoT in Poland”, 47% of Poles are afraid that theirdata can be leaked and 33% of them are afraid of losing the control over their devices connected to the web. Will those anxieties be fixed by the blockchain? Perhaps this might be the foundation for the new network to which most of the modern devices will be connected to with the usage of IoT. Its almost impossible to hack the block of chains because of its complexity, while hacking the home WiFi only requires a moderate IT knowledge.

Currently, if we forget to turn off the sink, the only risk we create is potentially floodingour neighbours’ flat. However, if we forget about the safe usage of IoT devices, we are can potentially face much greater consequences like the risk of hacking the entirenetwork they are connected to. Without the blockchain we will be potentially risking not only the safety of our data, but also the data belonging to our clients. When will the ideal, safe and practical future unfold? No one can truly tell, but we must remain vigilant and teach the companies to slowly but steadily implement the blockchain technology.

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Aethir Tokenomics – Case Study

Kajetan Olas

22 Nov 2024
Aethir Tokenomics – Case Study

Authors of the contents are not affiliated to the reviewed project in any way and none of the information presented should be taken as financial advice.

In this article we analyze tokenomics of Aethir - a project providing on-demand cloud compute resources for the AI, Gaming, and virtualized compute sectors.
Aethir aims to aggregate enterprise-grade GPUs from multiple providers into a DePIN (Decentralized Physical Infrastructure Network). Its competitive edge comes from utlizing the GPUs for very specific use-cases, such as low-latency rendering for online games.
Due to decentralized nature of its infrastructure Aethir can meet the demands of online-gaming in any region. This is especially important for some gamer-abundant regions in Asia with underdeveloped cloud infrastructure that causes high latency ("lags").
We will analyze Aethir's tokenomics, give our opinion on what was done well, and provide specific recommendations on how to improve it.

Evaluation Summary

Aethir Tokenomics Structure

The total supply of ATH tokens is capped at 42 billion ATH. This fixed cap provides a predictable supply environment, and the complete emissions schedule is listed here. As of November 2024 there are approximately 5.2 Billion ATH in circulation. In a year from now (November 2025), the circulating supply will almost triple, and will amount to approximately 15 Billion ATH. By November 2028, today's circulating supply will be diluted by around 86%.

From an investor standpoint the rational decision would be to stake their tokens and hope for rewards that will balance the inflation. Currently the estimated APR for 3-year staking is 195% and for 4-year staking APR is 261%. The rewards are paid out weekly. Furthermore, stakers can expect to get additional rewards from partnered AI projects.

Staking Incentives

Rewards are calculated based on the staking duration and staked amount. These factors are equally important and they linearly influence weekly rewards. This means that someone who stakes 100 ATH for 2 weeks will have the same weekly rewards as someone who stakes 200 ATH for 1 week. This mechanism greatly emphasizes long-term holding. That's because holding a token makes sense only if you go for long-term staking. E.g. a whale staking $200k with 1 week lockup. will have the same weekly rewards as person staking $1k with 4 year lockup. Furthermore the ATH staking rewards are fixed and divided among stakers. Therefore Increase of user base is likely to come with decrease in rewards.
We believe the main weak-point of Aethirs staking is the lack of equivalency between rewards paid out to the users and value generated for the protocol as a result of staking.

Token Distribution

The token distribution of $ATH is well designed and comes with long vesting time-frames. 18-month cliff and 36-moths subsequent linear vesting is applied to team's allocation. This is higher than industry standard and is a sign of long-term commitment.

  • Checkers and Compute Providers: 50%
  • Ecosystem: 15%
  • Team: 12.5%
  • Investors: 11.5%
  • Airdrop: 6%
  • Advisors: 5%

Aethir's airdrop is divided into 3 phases to ensure that only loyal users get rewarded. This mechanism is very-well thought and we rate it highly. It fosters high community engagement within the first months of the project and sets the ground for potentially giving more-control to the DAO.

Governance and Community-Led Development

Aethir’s governance model promotes community-led decision-making in a very practical way. Instead of rushing with creation of a DAO for PR and marketing purposes Aethir is trying to make it the right way. They support projects building on their infrastructure and regularly share updates with their community in the most professional manner.

We believe Aethir would benefit from implementing reputation boosted voting. An example of such system is described here. The core assumption is to abandon the simplistic: 1 token = 1 vote and go towards: Votes = tokens * reputation_based_multiplication_factor.

In the attached example, reputation_based_multiplication_factor rises exponentially with the number of standard deviations above norm, with regard to user's rating. For compute compute providers at Aethir, user's rating could be replaced by provider's uptime.

Perspectives for the future

While it's important to analyze aspects such as supply-side tokenomics, or governance, we must keep in mind that 95% of project's success depends on demand-side. In this regard the outlook for Aethir may be very bright. The project declares $36M annual reccuring revenue. Revenue like this is very rare in the web3 space. Many projects are not able to generate any revenue after succesfull ICO event, due to lack fo product-market-fit.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

Nextrope Partners with Hacken to Enhance Blockchain Security

Miłosz

21 Nov 2024
Nextrope Partners with Hacken to Enhance Blockchain Security

Nextrope announces a strategic partnership with Hacken, a renowned blockchain security auditor. It marks a significant step in delivering reliable decentralized solutions. After several successful collaborations resulting in flawless smart contract audits, the alliance solidifies the synergy between Nextrope's innovative blockchain development and Hacken's top-tier security auditing services. Together, we aim to set new benchmarks, ensuring that security is an integral part of blockchain technology.

Strengthening Blockchain Security

The partnership aims to fortify the security protocols within blockchain ecosystems. By integrating Hacken's comprehensive security audits with Nextrope's cutting-edge blockchain solutions, we are poised to offer unparalleled security features in our projects.

"Blockchain security should never be an afterthought"

"Our partnership with Hacken underscores our dedication to embedding security at the core of our blockchain solutions. Together, we're building a safer future for the industry."

said Mateusz Mach, CEO of Nextrope

About Nextrope

Nextrope is a forward-thinking blockchain development house specializing in creating innovative solutions for businesses worldwide. With a team of experienced developers and blockchain experts, Nextrope delivers high-quality, scalable, and secure blockchain applications tailored to meet the unique needs of each client.

About Hacken

Hacken is a leading blockchain security auditor known for its rigorous smart contract audits and security assessments. With a mission to make the industry safer, Hacken provides complex security services that help companies identify and mitigate vulnerabilities in their applications.

Looking Ahead

As a joint mission, both Nextrope and Hacken are committed to continuous innovation. We look forward to the exciting opportunities this partnership will bring and are eager to implement a more secure blockchain environment for all.

For more information, please contact:

Nextrope

Hacken

Join us on our journey to deliver top-notch blockchain tech and a safer future for the industry!