Threshold Network (T)
Threshold Network, launched in January 2022, offers a comprehensive range of decentralized threshold cryptography services. These services enhance privacy and control within decentralized applications and Web 3.0 platforms by distributing operations across a network of independent nodes.
The Threshold ecosystem
Threshold cryptography works by distributing sensitive operations among multiple independent entities, like nodes in a network. A minimum number of these entities must collaborate to succeed, enhancing security and reducing reliance on trust. This method maintains functionality even in the presence of malicious actors, preventing single points of failure common in centralized systems. Threshold Network emerged from the first on-chain merger between Keep Network and NuCypher. Its services include a proxy re-encryption service for user-controlled secrets management and dynamic access control, and tBTC v2, a decentralized Bitcoin-to-Ethereum asset bridge.
| Ticker | T |
| Category | Decentralized Finance (DeFi) |
| Website | https://threshold.network/ |
| @TheTNetwork | |
| Contract Addresses | |
|---|---|
| ethereum | 0xcd...e5 Copied! |
| optimistic-ethereum | 0x74...a7Copied! |
| base | 0x26...29Copied! |
| solana | 4N...XCCopied! |
Proxy re-encryption (PRE)
The Proxy Re-Encryption (PRE) service is cryptographic middleware designed for privacy-preserving applications. This scalable protocol allows a proxy to transform encrypted data from one key to another without exposing the plaintext. Nodes on the Threshold Network secure this process using threshold cryptography, enabling secure data sharing based on access conditions set by the data owner. PRE is vital in scenarios requiring data ownership preservation and sharing, such as encrypted content subscriptions or secure NFT ownership transfers.
tBTC v2
tBTC is a decentralized bridge connecting Bitcoin and Ethereum, allowing Bitcoin holders to access the DeFi and Web3 ecosystem without intermediaries. Unlike existing solutions, tBTC uses a second-generation approach, involving randomly selected operators running nodes on the Threshold Network. These operators use threshold cryptography to secure deposited Bitcoin, ensuring actions require consensus. The operator selection rotates weekly to prevent any single entity from gaining control, ensuring user funds are governed by mathematical protocols.
tBTC redemptions
On July 26, 2023, Threshold Network launched tBTC Redemptions on the mainnet, enabling Bitcoin holders to use BTC within the DeFi ecosystem through a scalable, decentralized solution. This feature allows seamless interaction between the two largest crypto ecosystems.
Threshold DAO
Threshold is governed by a Decentralized Autonomous Organization (DAO), combining communities from NuCypher and Keep networks. The DAO features two main entities: the Tokenholder DAO and the Elected Council. This structure enhances representation and accountability, following a checks and balances system. On October 14, 2023, Threshold DAO approved a Solana-Bitcoin growth proposal to establish tBTC on Solana as a preferred Bitcoin representation, aiming to foster a growth campaign for DAOs.
Governance process
The governance process involves community discussion, temperature checks via off-chain snapshots, proposal creation, a 10-day voting period, a 2-day timelock delay, and execution of approved proposals. This structured process ensures transparency and community involvement.
Threshold Token (T)
The Threshold Token (T) serves as the network's utility and governance token. It facilitates network operations and governance within the Threshold DAO. T Token holders can earn staking rewards by staking tokens to become validating nodes. The amount staked impacts the rewards validating nodes receive. An initial supply of 10 billion T tokens was distributed among NuCypher and Keep holders and the Threshold DAO.
Partnerships
Threshold Network x Wormhole
In May 2023, Threshold Network integrated with Wormhole, a cross-chain token protocol, to facilitate the movement of tokenized Bitcoin (tBTC) across blockchain ecosystems. This integration aims to establish tBTC as the dominant Bitcoin representative in on-chain DeFi ecosystems, allowing transfers to both EVM and non-EVM chains like Solana and Cosmos.
Threshold Network x Bond Protocol
On June 21, 2023, Threshold Network launched its first bonding program to boost tBTC awareness and usage. This program allows users to swap tokens for discounted Threshold tokens (T) managed by the Bond Protocol. Participants gain discounted T tokens, enabling governance involvement and staking, while the network benefits from increased market liquidity through Protocol Owned Liquidity.