Let us start with one question: How can you use nkn token and what does nkn token do?
This article will show you the answer.
NKN is a P2P network connectivity protocol which uses token economic incentives to motivate users to share network connection unused bandwidth.
NKN has implemented a unique Majority Vote Cellular Automata consensus algorithm, a Proof of Relay mechanism where the expected rewards a node gets depend on its network connectivity and data transmission power. A node proves its relay workload by adding a digital signature when forwarding data, which is then accepted by the system through a consensus algorithm. The competition between nodes in the network will ideally drive the system towards the direction of a low latency, high bandwidth data transmission network.
Besides mining and transaction fees, the NKN token can also be used to purchase services in the NKN ecosystem (nCDN, TUNA, etc) based on bandwidth consumption.
Economics and supply
The supply allocation is as follows:
Private Sale: it was conducted between February 2018 to April 2018 for 250,000,000 NKN at a rate of 5,400 NKN = 1 ETH at ~$0.09 and 826 NKN = 1 NEO at ~$0.06, raising a total of 8,031 ETH (~$4.02M) and 250,100 NEO (~$12.50M), selling 25% of the total token supply.
Early Bird Sale: it was conducted between 2 to 8 April 2018 for 50,000,000 NKN at a rate of 4,500 NKN = 1 ETH and raised a total of 11,111 ETH (~$4.20M) at ~$0.084 per token, selling 5% of the total token supply.
Public Sale: it was conducted on 19 April 2018 for 50,000,000 NKN at a rate of 4,150 NKN = 1 ETH and raised a total of 12,048 ETH (~$6.31M) at ~$0.126 per token, selling 5% of the total token supply.
Strategy overview
NKN's community growth strategies include the following
Working with exchanges, VCs and partner token projects in joint activities such as conferences, meetups, and hackathons.
Attracting non-crypto users with its upcoming mobile app which has a built-in private messaging (D-chat) functionality in addition to NKN wallet.
Publishing blogs to help developers build on top of NKN technology.
Providing additional token rewards for the mining nodes in developing countries (see Africa and South America Challenge).
How can you use nkn token and what does nkn token do
The New Kind of Network (NKN) envisions to further decentralize network resources by enabling internet users to "share network connections and utilize unused bandwidth".
NKN features dataRide, a Platform-as-a-Service product, as well as SDKs to develop dApps. NKN itself already launched several dApps, such as nMobile(an encrypted secure mobile wallet and chat application), nCDN(a crowdsourced service for content delivery), or D-chat(a server-less, secure, and private chat).
NKN’s underlying blockchain relies on a Proof-of-Work (PoW) consensus mechanism.
NKN features a utility token that must be used to access the envisioned decentralized internet as it essentially is a tokenized unit of network connectivity and data transmission capability.
