OXT crypto is the native utility token for Orchid, a decentralized bandwidth marketplace built on Ethereum blockchain. Rather than a customary VPN that relies on a single provider, Orchid connects providers of bandwidth, using freelancers, to users through pay-as-you-go access.

The answer to what is Orchid Network goes beyond a traditional VPN. Orchid combines an open-source VPN client, a set of Ethereum smart contracts, stake-weighting for provider selection, and probabilistic nanopayments, creating a decentralized privacy services marketplace. The protocol also supports Orchid’s VPN along with WireGuard and OpenVPN.

The economic model powering Orchid consists of OXT token, which is staked by bandwidth providers for visibility, and probabilistic nanopayments for bandwidth billed to user accounts in OXT tokens.

In contrast to speculative digital assets, Orchid crypto was designed to allow for market incentives, providing rewards for bandwidth providers as well as payments.

In other words, rather than a centralized VPN, those interested in how does Orchid work can imagine a marketplace of nodes. Orchid creates a marketplace of providers by letting them stake OXT on Ethereum, while the client selects providers via a stake-weighted lottery.

Orchid VPN crypto model allows users to replace monthly subscriptions with a pay-as-you-go model, sending probabilistic nanopayment tickets with encrypted traffic, substantially reducing on-chain Ethereum transactions and fees.

OXT tokenomics are straightforward. OXT is an ERC-20-based utility token on Ethereum, with a total supply of 1 billion tokens. Moreover, the protocol is incentivized through staking, as well as the utility of the network.

Providers stake OXT to signal themselves for user traffic, so OXT utility is closely tied to activity within Orchid network itself.

How Does OXT Crypto Work?

OXT crypto is used to coordinate payments and provider incentives in Orchid’s decentralized, open marketplace for bandwidth, in which providers advertise services with staked OXT while users pay providers with probabilistic payments to avoid sending multiple microtransactions over Ethereum.

OXT is locked in Orchid’s Ethereum directory contract by bandwidth providers. The client selects tiered bandwidth providers at random according to the proportion that each provider contributes to the system’s total stake. A larger stake will improve visibility, but won’t guarantee revenue.