on the crypto
Nym now allows bitcoin transactions and has an incentive program for users who run its nodes. The startup also enables plugins that will allow users to link wallets and applications to run their traffic through its mixnet.
What is a mixnet?
Nym is a startup working on a software project to obscure metadata tracking at the network level via the enabled mixnet. The mixnet is hosted by a decentralized network of volunteers. On a normal Internet network, most traffic can be monitored.
Browsers such as Tor offer some degree of protection against network surveillance through a series of relays that hide a user's location and actions. However, such networks are still susceptible to metadata observation, so highly capable entities, such as the National Security Agency in the US, are able to see the timing of data packets sent across a network and get an idea of what is happening, although they cannot see the actual contents of the packages. A mix network or “mixnet” (the name comes from the proxy servers involved, called a “mix”) obscures the metadata left behind when data passes through a network.
Incentives paid in bitcoin
One way Nym uses to reward its traders is through L-BTC on the Liquid sidechain using the Blockstream Green wallet. Liquid offers on-chain privacy by using confidential transactions, which obscure the amounts paid.
For traders who don't have or want a Blockstream Green wallet, Nym will use BTC because it doesn't want to force anyone to adopt a particular wallet. Nym is also launching its own reputation system, NYMPH, which allows you to keep track of which mixnodes are online and mix data packets, even across multiple chains.
The company is adding more functionality for executing transactions and web traffic on its mixnet. “Nym is a plug-and-play replacement for Tor for any wallet that supports SOCKS5 or any application that supports SOCKS5,” said Harry Halpin, CEO of Nym. SOCKS is a protocol that exchanges network packets between device and server through a proxy.
A step forward for privacy
Adam Back, CEO of Blockstream, said in a statement that Nym's mixnet technology looks promising and counts as a modern upgrade to Tor. “Network privacy is a crucial component in ensuring the financial privacy of Bitcoin users, so we were very happy to partner with Nym on its integration with Liquid,” he said.
Nym acknowledges that while this is an important step forward, it is not a privacy panacea. At least not yet. “We still don't recommend depending on the Nym mixnet for more secure privacy,” said Dave Hrycyszyn, Nym's CTO.
“We are working to encode the anonymity of the sender and recipient, after which a complete check will be required. But we are making steady progress and we invite you to try mixnet today and give us some feedback on how things are going. "
