Orchid is a crypto project that facilitates a decentralized virtual private network (VPN) service. Unlike traditional VPN providers that route all user traffic through a single platform, Orchid creates a trustless, distributed VPN through a network of users on the Ethereum blockchain.
In order to use this service, users must pay for bandwidth using the orchid cryptocurrency. OXT crypto is the token that powers the Orchid network.
This Orchid crypto guide will cover everything an investor might want to know about Orchid OXT, including:
• What is OXT Crypto and How Does it Work?
• Why Was Orchid Crypto Created?
• Orchid OXT Price
• Is Orchid Crypto a Good Investment?
• How To Invest in Orchid Crypto
What is OXT Crypto and How Does it Work?
Orchid serves as a kind of decentralized marketplace for individuals who need bandwidth and providers willing to sell it, bringing the two groups together. The medium of exchange that they use to transact with each other is Orchid coin.
There are two primary parties taking part in Orchid. The first are bandwidth users running the Orchid app wanting to use its decentralized VPN service. The second are bandwidth sellers, which are nodes in the Orchid network who exchange bandwidth for OXT. Once two users agree to exchange bandwidth for Orchid (OXT), the peer-to-peer connection then gets encrypted and routed through the internet servers of the seller.
Why Was Orchid Crypto Created?
Orchid cryptocurrency was created as a way to fuel decentralized virtual private networks (VPNs) in an effort to eliminate some of the vulnerabilities of traditional VPNs.
The biggest and most obvious such vulnerability lies in the fact that when routing all internet traffic through a single provider, the potential exists for that provider to use and abuse the information. While some VPN services do not log user activity, they could still be subpoenaed by national governments, being forced to hand over user data of one kind or another.
Orchid’s model of using a multi-hop configuring with layered encryption through a decentralized app hopes to eliminate this crucial vulnerability. The exchange of bandwidth for OXT crypto is facilitated through the Orchid mobile app, which allows buyers to enjoy a private browsing experience. When internet traffic is routed through an encrypted VPN tunnel, outside users cannot see what’s happening, including the user’s internet provider.
Increased Privacy Through Orchid’s VPN
Orchid uses blockchain technology to keep user data private to a degree not possible with traditional VPN providers.
Because paying for bandwidth must be done using Orchid (OXT), it’s thought that users could stay anonymous by not having to use payment methods like a bank account. Some VPN providers do allow for more anonymous payments using things like gift cards, but the Orchid team argues that using OXT is still more private.
But the feature that makes the Orchid VPN most unique involves its multi-faceted approach to privacy. Instead of having a single host create the private network, Orchid puts together several providers using layered encryption and multiple hops.
A “hop” refers to a new connection in a virtual private network. Many VPNs use only one hop, i.e., user traffic goes from the user’s device, to the VPN server, to the destination. However, Orchid allows for multiple hops, sending traffic through several servers on its way to its ultimate destination.
At each hop, data is protected, and the idea is that more hops makes it harder and harder to link the internet traffic back to its original source.
Orchid OXT Price
The price of Orchid (OXT) is currently about $0.34. This represents a 63% drop from the all-time high of $0.94 reached in August 2020, and a 228% increase from the all-time low reached in March 2020. Although the price will likely be higher or lower by the time this article reaches publication, these historic data points show how volatile an altcoin like Orchid can be.
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Is Orchid Crypto a Good Investment?
As of March 2021, OXT crypto had a market cap of just $127.8 million, making it the #123rd cryptocurrency by market cap.
The smaller the market cap of any asset, whether it’s penny stocks or cryptocurrencies, the greater the risk and volatility in general. Less money in the asset means the market can make big moves in a short period of time with relatively small amounts of capital.
Individuals who believe that increased use of the Orchid decentralized VPN service will lead to a rising Orchid coin price (since the coin is required to use the VPN) might consider the cryptocurrency to be a good investment. But there is no definitive take on this.
In short, speculative altcoins could be profitable when the timing is right, but investors who are comfortable with the risk should be prepared to potentially shoulder heavy losses as well. One of the wisest general investing rules is also a wise cryptocurrency rule: when it comes to altcoins, only risk what you can afford to lose.
Recommended: 6 Things to Know Before Investing in Crypto
How To Invest in Orchid Crypto
To get your hands on some Orchid crypto, simply create an account on an exchange that trades one of the OXT base pairs (like OXT/BTC or OXT/USDC), like Binance, Kraken, Gemini, Bithumb, and Coinbase Pro. Check CoinMarketCap for a full list of qualifying exchanges.
To buy and sell cryptocurrency such as Orchid, you will need some bitcoin, a stablecoin like USDT or USDC, or US dollars to trade for OXT.
Orchid is a decentralized VPN app built on the Ethereum network. OXT crypto is the token that fuels this app. Users who want decentralized VPN pay users who operate nodes for bandwidth, and they do so using OXT.
Orchid provides a novel solution to a long-standing problem among privacy advocates—how to privatize network traffic without putting all of that data into the hands of a single party.
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