Nym, a decentralized, token-based infrastructure that provides end-to-end privacy, from the network layer to the application layer.

It combines a decentralized mixnet with a credential system, incentivizing participation through NYM tokens to ensure sustainability and scalability. Nym seeks to counter mass surveillance by protecting both the content and metadata of communications, offering an alternative to surveillance-based economic models.

Its architecture includes validators, mixed nodes, and a Nym blockchain, allowing the creation of applications with greater privacy. Finally, it is compared to other systems such as VPNs and Tor, highlighting its advantages in terms of anonymity and scalability.

Nym Litepaper Summary: A Next-Generation Privacy Infrastructure

This paper presents an overview of the key concepts, functionalities, and goals of the Nym network, as described in its litepaper. Nym is proposed as a next-generation, decentralized, token-based privacy infrastructure that seeks to protect both the content and metadata of online communication. The paper emphasizes the importance of privacy as a fundamental right and as an enabler of innovation and freedom.

Surveillance as an obstacle to the future

The document begins by denouncing mass surveillance as a threat to freedom and development.

The concentration of control of the Internet in the hands of a few institutions and corporations exposes humanity to censorship, manipulation and loss of privacy.

Quote: “Those who control the Internet control the future of our species.”

While end-to-end encryption protects the content of communications, it does not protect the metadata (with whom, when, where), which can be just as revealing or more so.

The NSA and its mass collection of metadata are explicitly mentioned, highlighting the need for a solution that protects against large-scale traffic analysis. Nym is presented as a comprehensive solution that protects both content and metadata, offering a secure foundation for applications that can anonymize metadata at the network and application traffic level.

How Nym Works

Nym is defined as a system that provides privacy at multiple layers, not just at one part of the communication.

It consists of two main parts: a decentralized mixnet that protects network traffic (layer 0), improving VPN and Tor models, and a tokenized credential system that provides application-level privacy and enables access to the mixnet.

Tokenization is essential for sustainable operation and to prevent abuse of the network. The NYM token is used to pay and reward the provision of network services.

Quote: “We do not believe that the communication system we envision would be feasible to operate free of charge, on a completely voluntary basis. Economic incentives are needed to encourage participation and prevent abuse of the network.”

Nym’s architecture is designed to be compatible with any blockchain, allowing the network to remain decentralized, permissionless, and trustless. Nym excels at being able to mix large and diverse user bases from different applications, creating a larger and more effective anonymity pool, as anonymity depends on being indistinguishable among a group.

The NYM Token

The NYM token is a means of valorizing privacy. The token allows participation in building the infrastructure that protects it by paying for services. The token provides access to private, uncensored internet communications for a certain period of time.

The token is used to reward those who participate in the network, such as mixing node operators and validators of the Nym blockchain.

The mix-mining reward system is designed to be deflationary, incentivizing early participation. It is explained that staking is integral to the provision of network services. Participants are incentivized to offer high-quality services through rewards and the possibility of losing their stake for bad behavior.

Quote: “In the mass surveillance machine that Google and Facebook have created, privacy has a value of zero. Market forces have failed to recognize how important privacy is.”

Nym Architecture

The different components of the network are described: clients, validators, mixnet, mix guards, mixing nodes, service providers, Nym blockchain, external blockchains and identity providers.

The information flow when a user wants to access a service through Nym is explained: users discover providers and the attributes they need, obtain the necessary attributes, receive partial credentials from validators, show credentials to mixnet guards, the service provider records the use of credentials on the Nym blockchain, and rewards are distributed to network participants.

The mix-mining mechanism is detailed as a combination of proof-of-work and proof-of-stake to incentivize privacy-friendly computing and to penalize bad behavior.

Comparison with Other Systems

Nym is different from other privacy technologies. Encrypted messaging services (Whatsapp, Telegram, Signal) are criticized for not protecting metadata.

Privacy-focused cryptocurrencies (ZCash, Monero) can be deanonymized at the network level.

VPNs force you to trust the provider and can be vulnerable at their entry and exit points. It is explained that Tor, although more sophisticated than VPNs, does not offer privacy guarantees against powerful adversaries.

Mixnets, such as Nym, offer increased privacy by adding time obfuscation through random delays and cover traffic, making it harder for an outside observer to identify a user.

Quote: “A mixnet provides multiple hops like Tor, but adds time obfuscation through random delays and cover traffic, so that a powerful outside observer cannot identify a user based on the patterns of their network traffic.”

It differs from previous mixnets in that the Nym mixnet guarantees message reception and allows anonymous two-way communication using SURBs.

Nym is designed to scale in speed and privacy as the anonymity set grows. Nym credentials serve to prevent spam or denial of service attacks, while allowing user authentication and authorization without revealing personal information.

New Opportunities

Nym makes it easy to integrate services into the network with minimal code changes, allowing privacy to be added to existing applications.

Nym’s potential to create a new ecosystem with a value comparable to that generated by widespread encryption in the 1990s is mentioned.

Potential applications based on Nym: private messaging services, distributed and private VPNs, anonymous blockchain transactions, private file sharing, and single sign-on (SSO) authentication services without losing control of personal data.

Call to Action

It concludes with a call to action to support the technology and services enabled by Nym, as well as to participate in its infrastructure as a mixing node operator or by delegating tokens to other operators. The power of cryptography to free us from tyranny and empower individuals is highlighted.

Quote: “When people can speak freely among themselves, it is impossible to oppress them.”

Conclusion

Nym is positioned as a crucial infrastructure for privacy in the digital age, offering an alternative to mass surveillance and providing a solid foundation for the development of applications that respect privacy and freedom. Its holistic approach that protects both content and metadata, combined with its decentralized and tokenized architecture, make it an innovative and promising project.

Link to the NYM litepaper: https://nym.com/nym_litepaper.pdf

Link to the NYM whitepaper: https://nym.com/nym-whitepaper.pdf

Other research papers: https://nym.com/trust-center/papers-and-research