Ever wondered why you trust big companies with your most sensitive information? Every time you upload personal documents or give your bank details to a service, you’re relying on centralized databases. These databases are easy for hackers to target. But what if I told that there’s a solution, called Nillion?
Instead of trusting one big service, Nillion spreads data out across many different places in a secure way. It keeps everything encrypted, even when the information is in use.
What Is Nillion?
Alright, so what exactly is Nillion? Put simply, Nillion lets you safely store and use private information without handing it over to a single company.
You see, most security setups today rely on one big database that stores your sensitive details, making it very easy for attackers. Nillion solves this by spreading out your data. It breaks your information into smaller encrypted pieces stored across multiple computers.
Each piece by itself tells nothing. Only when several computers work together can they unlock the information again.
The cool part is Nillion lets developers create apps that can use and process sensitive information without decrypting it. Usually, data needs to be decrypted to be used. With Nillion, the data stays encrypted during the whole process. The apps built in this way can securely handle medical records, financial information, or personal IDs without ever putting privacy at risk.
But how does Nillion actually work?
How does Nillion work?
Nillion works with two main parts: the Petnet and the nilChain. These two parts handle different tasks but work together to keep your information safe.
First, there’s the Petnet. That’s the core of Nillion. It’s made up of many separate computers around the globe. Each computer holds small encrypted parts of the information you’re storing. No single one has enough to understand what it holds.
To see the full data, multiple computers must work together. Think of your data like pieces of a puzzle. Each puzzle piece alone doesn’t give you the full picture. You need multiple pieces to make sense of it. That makes it tough for anyone to access your private data, because they’d need access to many puzzle pieces stored on separate computers.
Next is the nilChain. The nilChain handles payments and rewards. It organizes the network by rewarding the computers that keep it running. People who offer their computers and help make Nillion safe earn tokens for doing this work.
The nilChain doesn’t hold sensitive information. Its role is more about managing the money side and making the network run smoothly. These two parts combined let Nillion protect sensitive information securely, without any central database.
But why is Nillion different from any other cryptocurrency?
Why Is Nillion Different?
Nillion uses advanced encryption to safely process information without ever needing the actual data decrypted.
To keep it simple, Nillion combines two encryption methods: multi-party computation and homomorphic encryption. I know these sound technical, but let me explain clearly.
Multi-party computation breaks data up across computers, letting them work together without seeing the full data.
Homomorphic encryption lets computers do calculations on encrypted data directly, meaning the information stays locked the entire time. Think of it like safely doing math inside a locked box. You never open the box but still get the answer out in the end.
This ability lets Nillion do something unique: it safely uses the sensitive data while keeping privacy fully intact. That matters a lot for everyday tasks. Hospitals can securely examine patient conditions without ever exposing medical records. Businesses can safely run numbers on private sales without their competitors seeing sensitive details.
Understanding the NIL Token and How It Works
Let’s now explore the tokenomics of the NIL token. NIL is the native token of the Nillion ecosystem and it can be used to pay for transaction fees, staking, governance, and as a reward to computers that contribute computational resources or store data.
The NIL token doesn’t have a maximum supply cap. Its total initial supply was set at 1 billion tokens, but the supply is subject to an annual inflation rate of 1%, which can be adjusted through governance decisions. This means new NIL tokens are continuously added to the circulating supply each year.
At launch, the total supply of NIL tokens was set at 1 billion. However, only 20% of that was initially in circulation due to vesting schedules and lockups.
Of the 1 billion, the initial token distribution was as follows: 29% was allocated to Ecosystem and Research and Development, Early Backers received 21%, while the Community and Core Contributors were each allocated 20%. The remaining 10% was allocated to Protocol Development.
Is Nillion worth it?
Alright, let’s quickly sum everything up. Nillion is a secure network that breaks apart sensitive data and stores it safely across multiple computers. It allows apps and companies to process and use encrypted information without ever unlocking it. It uses two advanced encryption methods to keep your data secure at all times. People who help run the system earn NIL tokens, and those tokens also let developers use the network’s tools.
By creating a system that doesn’t rely on a single central authority, Nillion gives us a safer way to store and use private information. It addresses the very real problem of data leaks and online hacks, giving us greater security and peace of mind online. That’s it!