Threshold Network provides a suite of threshold cryptography services that power user sovereignty on the public blockchain.
Threshold Network provides a suite of threshold cryptography services that power user sovereignty on the public blockchain.
Threshold cryptography is a revolutionary technology that uses cryptography – the same branch of mathematics that made Bitcoin and Ethereum possible – to unlock greater utility and usability for digital assets without needing to trust a centralized party.
Threshold cryptography distributes sensitive operations across multiple independent entities – like nodes in a network – and requires a threshold, or minimum number of those entities to cooperate for the operation to be successful. This simple idea increase an information system’s security and availability, and reduces the reliance on trusted parties since no one single actor can corrupt the system.
The genesis of the Threshold ecosystem stems from the merger of NuCypher and Keep Networks into a single decentralized network—it delivers a suite of threshold cryptography services for web3 applications through a decentralized network of nodes. Services on the Threshold Network include a proxy re-encryption service for user-controlled secrets management and dynamic access control, and tBTC, the only decentralized and permissionless Bitcoin-to-Ethereum asset bridge.
If you hold Bitcoin, one question remains unanswered – how can I move my asset across blockchains to make it more useful, while maintaining Bitcoin’s core values?
Existing solutions bringing Bitcoin to Ethereum require you to send your Bitcoin to an intermediary, who then issues you an Ethereum token representing your original asset. This centralized model requires you to trust a third party and is prone to censorship, sacrificing Bitcoin's promise of secure, permissionless decentralization.
The second generation of tBTC is the only truly decentralized bridge between Bitcoin and Ethereum, providing Bitcoin holders permissionless access to DeFi and the expanding web3 universe. tBTC v2 is the only truly decentralized solution bridging Bitcoin to Ethereum at scale, empowering Bitcoin holders to leverage their assets in the expanding DeFi and Web3 universe without trusting an intermediary.
While the blockchain revolution unlocks the power of decentralized apps, without proper architecture, Web3 platforms built on public blockchains present significant risks to user privacy. The Threshold Network, through its use of threshold cryptography, provides a unique solution to the challenges of user privacy for Web3 platforms.
Threshold’s Proxy Re-Encryption service, PRE, is cryptographic middleware for developing privacy-preserving applications. Proxy Re-encryption is a scalable end-to-end encryption protocol that allows a proxy entity to transform (or re-encrypt) encrypted data from one encryption key to another without revealing the plaintext data. The nodes on the Threshold Network act as these proxy entities and use threshold cryptography to securely and cooperatively re-encrypt data for recipients based on access conditions defined by the data owner.
Thanks to the unique design of Threshold Proxy Re-Encryption, web3 applications can ensure that a user’s data is under the user’s ultimate control while operating on a public blockchain.
Threshold USD, or thUSD, is a decentralized stablecoin pegged 1:1 against the USD price.
To borrow thUSD, you provide tBTC (v2) as collateral. This allows Bitcoin holders to bridge their BTC via tBTC and borrow against their Bitcoin holdings. The borrowed thUSD can then be deployed in the larger DeFi ecosystem. For example, you could deposit it to an exchange or lending market to earn yield, swap it into other stablecoins such as USDC etc.
Each thUSD is fully backed by tBTC with a minimum 110% collateral ratio. The low collateral ratio is made possible due to the underlying "stability pool" - a pool of thUSD that will automatically purchase liquidations basically the moment they occour. This enables lower liquidation ratio than auctions would (because auctions are slow and affected by price fluctuations).
Threshold USD is a fork of Liquity Protocol. However, thUSD differs in a few ways. Firstly, there is no LQTY token in thUSD. Whenever minting of thUSD or redemptions occurs, a fee is taken and the profits accrue directly to the PCV (Protocol Controlled Value) which again is owned by the Threshold DAO.
As T holders are the ultimate beneficiaries of Threshold DAO, they stand to gain monetary value from usage of the Threshold USD Protocol.
Threshold is community-driven and governed by a DAO.
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Cotton Tree Bay, Cayman Islands KY1-1106
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