What is Threshold (T)?
Threshold (T) is the native asset for the platform of the same name. It acts as the utility and governance token for the Threshold ecosystem. The Threshold decentralized network came to existence as a merger between NuCypher and Keep blockchains.
Threshold is a platform for blockchain data storage and security solutions. It provides off-chain data storage and access control. The platform also hosts tBCT, a decentralized bridge between Bitcoin (BTC) and Ethereum (ETH). All data regarding the Threshold price performance is available in the chart above.
What is the Story of Threshold?
The Threshold crypto ecosystem was launched on January 1, 2022 after two decentralized protocols – Keep Network (KEEP) and NuCypher (NU) – were merged. The Keep Network provided data storage and encryption services, while NuCypher was a decentralized privacy solution provider. The asset is mildly volatile and experiences frequent T price fluctuations.
Much like the two platforms, Threshold is focused on blockchain security and privacy. It allows smart contracts to manage encrypted data that is kept in off-chain storage units known as keeps.
Both NuCyper and Keep Network communities held governance votes on the proposed protocol changes. The votes determined that the Threshold price for NU and KEEP will be 3.26 T and 4.78 T respectively. NU and KEEP stakeholders were grandfathered into Threshold without losing their earnings.
Around the time of its launch, the Threshold price was around $0.13. It’s considered to be a relatively new token within the scope of the crypto industry. Nevertheless, as the successor of Keep and NuCypher, it is expected to be recognizable in the market.
What Are the Main Features of Threshold?
The maximum supply of Threshold tokens is 10 billion. Of this amount, 1 billion assets were allocated to the network’s decentralized autonomous organization (DAO). The remaining 9 billion were equally shared by the NU and KEEP token holders. The asset is deflationary, and the T price is expected to increase as the supply becomes more scarce.
One of the key functions that Threshold offers is a bridge between Bitcoin and Ethereum blockchains. Threshold hosts tBTC – a permissionless, tokenized version of Bitcoin. Since the Bitcoin blockchain doesn’t support smart contracts, tBTC can be used on Ethereum-based decentralized apps (dApps) without compromising asset security.
Cryptographic primitives – low-level algorithms used to develop crypto security protocols – are part of the Threshold storage technology. The technology used by Threshold is fittingly called threshold cryptography. It decentralizes the process of decrypting digital assets and requires a minimum threshold of network nodes that cooperate to reach a consensus.
Another innovative technology used by Threshold is Proxy Re-Encryption Service (PRE). It allows users to have full control over their sensitive data. This enables data to be accessible on public blockchains without exposing it to external parties.
Threshold also offers a range of blockchain-based DeFi solutions, including digital asset management, staking, and yield farming. Users are able to lock their assets in a smart contract to earn passive rewards.
The network is secured using the Proof-of-Stake (PoS) consensus algorithm. Users are able to stake their Threshold coins to act as data validators. Contributions via yield farming and operating network nodes are incentivized via Threshold rewards. The T price value from transaction fees is used for rewards.
Threshold also acts as the network’s governance token. This feature has carried over from both NuCypher and Keep networks. It ensures that the blockchain maintains its decentralization. Users can submit proposals and vote on protocol changes.
Since the platform was launched after a merger, NU and KEEP token holders can convert their assets to T. There is no deadline as to when the users should convert their assets. The Threshold price for conversion is maintained static to ensure fair exchange rates.