Virtual private networks (VPNs) are often marketed as a way to browse the internet privately and securely, free from the prying eyes of governments and companies. However, it is a well-known fact that many VPNs actually sell user data to fund their operations. VPNs have become increasingly popular, with more than a billion people worldwide using these cloaking applications. The market for VPNs surpasses $50 billion, but according to industry leaders like Roger Dingledine, founder of the Tor Project, most VPNs are private-in-name-only. Privacy threats include companies keeping logs of user activities and monitoring traffic flows to deduce user behavior.
Nick Percoco, Chief Security Officer at Kraken, points out that VPNs started out primarily as a business-to-business product used by organizations requiring increased security in online communications. However, VPN issuers began to monetize ‘privacy’ by marketing their products to consumers. Many VPN companies record user activities and sell that data, undermining the privacy that their users expect. Some providers, like “Hide My Ass,” even require users to take extra steps to stop the sale of their data, highlighting the lack of privacy by default in the VPN industry.
Swiss-based blockchain startup Nym Technologies introduces a new VPN called NymVPN, which uses blockchain technology to create a self-sustaining economic model. NymVPN falls under the crypto category known as DePIN, which relies on a blockchain to coordinate the operation of the network. The company aims to provide a truly private and secure VPN without selling customer data. Founder Harry Halpin emphasizes the importance of privacy, anonymity, and security in the current digital landscape, which has led him to develop technology to protect users’ online activities from surveillance tools.
Halpin’s background in artificial intelligence and activism has influenced his work on developing VPN technology. He was inspired by the courage of individuals in Tunisia, Egypt, and other countries during the Arab Spring uprisings and became interested in privacy and security issues. Following the Snowden revelations in 2013, Halpin realized the extent of mass surveillance and founded Nym to create anti-surveillance software using mix-networks. Nym’s mix-nets aim to conceal online activity and identity, offering a more secure and private option compared to traditional VPNs.
Nym faces challenges in building a mix-net that performs at usable speeds while maintaining high levels of security and privacy. The company is working on optimizing data packet exchange and leveraging hardware to reduce sluggishness in the network. Nym’s token has seen limited activity in the crypto markets, and the company is relying on demand for its blockchain and token prices for funding. The success of DePIN in the crypto sector remains largely unproven, with few projects demonstrating significant traction. Nym’s VPN could potentially serve as a killer app for privacy-focused blockchain technology.
Despite the challenges and risks associated with the crypto market, Halpin and his team remain committed to building a more secure and private VPN through Nym Technologies. The company aims to bring innovation to the VPN industry and provide users with a new approach to online privacy and security. With a focus on privacy, anonymity, and user safety, Nym’s mix-net technology offers a promising alternative to traditional VPNs and exemplifies a new vision for the future of online privacy protection.
