Category

$MYST

Migrate your tokens & earn 10 $MYST

Mysterium Network has been hard at work building a decentralised VPN. To date, we have maintained an incentivised test network of residential IPs for over a year. Our next step, peer to peer payments – which come with Mysterium Mainnet.

Relevant Reads:

  1. Mysterium Token Migration Guide 
  2. The Road to Mainnet: Mysterium Product Roadmap Update 

Mysterium Network began our token migration as part of our wider move to MainNet. To date, we have migrated about 15 million legacy tokens.

As we approach Mainnet, we would like to encourage our core community to migrate legacy MYST tokens. To help this initiative along, we are launching an airdrop between the 18 & 25 November 2020! 

We are launching an airdrop between the 18 & 25 November 2020!

Why an airdrop?

We plan to compensate MYST token holders for the high Ethereum transaction fees they might incur during the token migration process.

To reiterate terms of our token migration: 

  1. This a 1:1 token migrations
  2. No new tokens will be created

Want to get 10 MYST airdropped into your wallet? 

  • Migrate your tokens from your old addresses to a new one from 00:00 between the 18 & 25 November 2020
  • Regardless of the number of tokens that you own, we will compensate you 10  MYST (One user gets 10 MYST). 
  • Multiple applications from one participant, as well as other actions that can be qualified as fraud, will result in disqualification from this airdrop. Simply put, no MYST if you try to game the system. 
  • MYST tokens will be distributed to new token addresses between 26 November and 2 December 2020

As you can clearly see, the nature of the service we are offering and the emerging markets that we are a natural ally to, make Ethereum’s current transaction fees a lock out when onboarding new customers. 

As such, like many other Ethereum-based projects, Mysterium Network has had to reroute our roadmap in search of scalability solutions to give our users the cheapest and fastest service possible, while maintaining decentralized and noncustodial architecture. 

In the following sections, we will review existing Layer 2 solutions in relation to Mysterium Network’s use case, explaining how they offer both opportunities and limitations.

How can I get support migrating my legacy MYST tokens?  

 We have an easy to follow token migration guide to get you started, otherwise jump into our and speak directly with our core community and team.

How can I get support on this airdrop?

If you have any issues with the airdrop after successfully completing all terms of requirements, please, write to us at help@mysterium.network.

Roadmap Update: no more free VPN, nodes get paid in $MYST

mysterium VPN

Has that gotten your attention?

 

Mysterium Network is maturing, alongside our wider ecosystem. With the freedom of speech online being debased, a global pandemic and other macro forces in play  – we see it as a priority to enable peer to peer payments in the most frictionless way possible. 

As we have written previously, transaction fees on Ethereum have proven to be a problem. But we have found the workaround.

To dive deeper, read these blogs:  

1. Layer 1, 2, 3 – and beyond: The search for the cheapest and fastest microtransactions. [2020]

2. Mysterium Network’s Head of Product, Jaro Šatkevič breaks down a lightweight solution for Mysterium Network payments

3. Mysterium Network micropayments whitepaper [2019]

 

Mysterium Network Updated Roadmap Q4 2020

What does this mean?

 

Step one: Network Fork 1

 

All users and node runners within Mysterium Network will have to upgrade into testnet version two (Testnet 2.0).


What is Testnet 2.0?


a) New smart contracts on Goerli testnet – Mysterium Testnet 2.0 will be using new test MYSTT token, same code as new MYST token, with `permit` function and 18 zeros (instead of 8) after the comma. We will also be using a new set of payments smart contracts which will halve settlement of collected funds and add support for being used in multiple chains.

Read more in our deep dive on Layer 2 solutions so as to avoid ETH transaction fees.

b) Payment processor integration into apps  – this will provide the possibility for dVPN consumers to top-up via their Mysterium account with a set of different cryptocurrencies (such as BTC, LTC, ETH, BCH, DAI or USDT). Paid funds will be converted into MYST (or to MYSTT while in testnetv2) token and be sent into the user’s payment channels (top-up address) on the blockchain.

c) 1 MYSTT will be equal to 1 MYST. Also, bounty payouts will be done in MYST tokens. Previously we have pegged 1 collected MYSTT to 1 USD and did node runner bounty payouts in ETH. To take us closer to MainNet environment conditions, the time has come to implement pay-outs in MYST tokens. We will be still using our ETH bounty fund reserves, but we will be buying MYST token on the market to do payouts for node runners.

Users will have to update their applications. You will be given a starter kit of MYSTT. Following this users will need to top up using BTC, LTC, ETH and other cryptocurrencies.

Existing Node Runners will need to upgrade their node into the newest version, network upgrade will be done under the hood.


Please note: 

  • Node runner bounty will be paid only for Mysterium Node Runners running on Testnet 2.0 
  • Node runners will begin to receive payouts in $MYST. 


A month after the transition begins, testnet 1.0 will be completely destroyed. Network fork ends.

Step two: 

 

We will be releasing BetaNet (silent launch for a limited set of test users) and upgrading Testnet 2.0 to use some of Ethereum’s sidechain and cross-chain payments (consumers will be on a sidechain testnet, and node runners will have their accounts on Ethereum Goerli testnet).

This upgrade will happen under the hood and users may even not recognise that such change happened.

This will mean cheaper on-chain transactions for users and node runners as account registration and top-ups will happen on the sidechain instead of Ethereum Blockchain, once on MainNet.

Stay tuned for exciting integration partnerships coming very soon. Subscribe to our newsletter to hear it first. 

As you can clearly see, the nature of the service we are offering and the emerging markets that we are a natural ally to, make Ethereum’s current transaction fees a lock out when onboarding new customers. 

As such, like many other Ethereum-based projects, Mysterium Network has had to reroute our roadmap in search of scalability solutions to give our users the cheapest and fastest service possible, while maintaining decentralized and noncustodial architecture. 

In the following sections, we will review existing Layer 2 solutions in relation to Mysterium Network’s use case, explaining how they offer both opportunities and limitations.

Step three:
Testnet as we know it is going to be destroyed.

Step four:  

 

All users and node runners within Mysterium Network will be upgraded onto Mysterium MainNet in 2021.

 

What is MainNet?


MainNet is Mysterium Network on Ethereum Blockchain. All internal payments will be done using real MYST tokens.

Users will pay as they go for VPN service on Mysterium Network. Mysterium Network will run a few free nodes so that new users can test the service before topping up their account. This is also when we will look to roll out our much-awaited referral program, and other user-focused bounties. 

Node Runners will continue to be paid in MYST. This marks the end of the Mysterium Node Pilot No provider bounty is needed at this point and node runners can settle collected funds any time you like.

What happened to our Mysterium Pro plans?


As we had previously written, we were considering Mysterium Pro as our solution to high Ethereum transaction fees

Thanks, to Multichain support and the ability to use sidechains for consumer payment channels (top-up wallet management), we can avoid releasing a custodial MysteriumPro solution and instead merge its best features (such as pay in different cryptos, or one-click connect) into the default Mysterium VPN application itself. 

Onward to MainNet

 

Mysterium has been hard at work getting peer to peer payments implemented within the network. This has meant the navigation of a quickly shifting technological landscape. We wouldn’t be here without our community of node runners, users and token holders. 

We thank you for your ongoing support and are excited about the new changes to come as Mysterium Network grows to meet the new and very real challenges of our times. 

If you haven’t already, download Mysterium VPN or start to run a node.

Layer 1, 2, 3 and beyond: The search for the cheapest and fastest microtransactions

How many layers does it take to get cheap and fast microtransactions?

Building on top of a quickly iterating Layer-2 scaling ecosystem has meant murky navigation of several new technologies. This is especially difficult for builders looking to find workarounds for high transaction fees on the Ethereum blockchain. 

The recent DeFi boom has led to users cramming into Ethereum Network and creating a large backlog of unprocessed transactions. This has meant network congestion, and high transaction fees – both of which are natural killers for decentralized applications and networks. 

Why are cheap and fast microtransactions important for decentralized networks? 

In Mysterium, a decentralized VPN, payments are peer to peer. Consumers of VPN are directly paying exit node runners for VPN service. As such, there is no middleman with the power to freeze payments. This means that payments happen minute by minute, with transaction values as small as 0.0001 USD (in our native token MYST).

The nature of the peer to peer, and second by second service consumption mean that decentralized VPNs, and other incentivized distributed networks depend on microtransactions as a means of reducing risk within their network economy. Learn more about peer to peer technologies.

Earlier this year, we released our own Layer 2 solution (based on payment channels) on Testnet. This enabled users to transact with one another autonomously, without a need for an intermediary (including us) and without touching Layer 1 (Ethereum blockchain). This introduced super cheap and instant transactions, and allowed paying with values as small as $0.0001.

However, one of the challenges with payment channels, our protocol included, is the need to have specific on-chain transactions. In the case of Mysterium Network this is seen in two events, dVPN account creation and top-up. 

Onward - the search for scalability

User story: As a user in Nigeria, I am looking for a VPN solution that lets me pay for what I consume. I am unable to afford the expensive subscription pricing of traditional VPNs. I try Mysterium VPN, which allows me to stream a video for $0.05 USD in MYST on their freemium version. I run out of free MYST and want to add an additional $1 USD (in MYST). I try to top up. It costs me $2.25 in ethereum tx fees to top up my Mysterium Account. I delete the app.

See our how our userbase is growing in Nigeria.

As you can clearly see, the nature of the service we are offering and the emerging markets that we are a natural ally to, make Ethereum’s current transaction fees a lock out when onboarding new customers. 

As such, like many other Ethereum-based projects, Mysterium Network has had to reroute our roadmap in search of scalability solutions to give our users the cheapest and fastest service possible, while maintaining decentralized and noncustodial architecture. 

In the following sections, we will review existing Layer 2 solutions in relation to Mysterium Network’s use case, explaining how they offer both opportunities and limitations.

Methodology: An Overview of Existing Solutions

Recently at Mysterium we did more research on various Layer 2 solutions and conducted an overview of the most recognised and trustworthy ones in 2020. In this overview, we looked at different sidechains, taking into consideration the differing motivations and user personas of actors within Mysterium Network – [Consumer/ User; Provider/ Mysterium Node Runner]. 

1. Sidechains or alternative blockchains with bridges to Ethereum blockchain

These types of solutions are characterised by xDAI, MaticRSK (RSK is creating bridges into Ethereum, meaning that you can technically move Ethereum based assets onto this Bitcoin sidechain).

The main value proposition of these solutions is they are scalable, capital efficient and offer fast withdrawal into Layer 1. The main drawback is that validators control the network and are able to freeze and confiscate funds with consensus.

This make sidechains unattractive to DeFi (who lock hundreds of millions) offerings, while they remain relevant for a decentralized VPN use case such as Mysterium Network. This is due to the fact that DeFi carries with it different risks when compared to a dVPN.

Matic Network

The following two examples, Plasma and Rollups are different articulations of sidechains, built more specifically for the Ethereum ecosystem.

2. Plasma

Plasma is a framework proposed for scaling Ethereum using hierarchical sidechains. Plasma type sidechains (also referred to as child chains) allow a majority of transactions to occur outside of the Ethereum blockchain. Only deposits and withdrawals, and points of entry and exit are handled on the main blockchain smart contract.

To make sure that transactions are final, Plasma operators run a “state commitment”. This is a cryptographic method for storing a compressed version of the state of sidechain inside the Ethereum blockchain. This storage of a compressed version of the state impacts the user experience of Plasma as it makes it challenging for users to withdraw their tokens. Users are required to be both online frequently and to download data.

While offering significant speed (up to 1000 transactions per second) and latency improvements over Ethereum, Plasma cannot offer the near-zero latency and near-free transaction fees required for a decentralized VPN micropayments solution.

One of the differentiators, and drawbacks of Plasma as a Layer 2 solution is it allows users to leave the network at any time – an action referred to as “exiting”. This means that users can safely withdraw their funds from Plasma even if it is shut down by validators. But this has to be done in a certain period of time and done by everyone. Read more about the mass exit problem in Plasma.

Another drawback, Plasma is not 100% EVM compatible. This would mean any decentralized application building on Ethereum would have to update their smart contracts or it might even not be possible to build on Plasma

Dive deeper into Plasma and its potential applications within distributed networks in Mysterium Network’s Micropayments Whitepaper.

Plasma network

3. Rollups

Rollups are Layer-2 scaling solutions similar in form to Plasma in that a single mainchain contract holds all funds and a cryptographic commitment to larger sidechain state. This state is maintained by users and operators offchain, providing an independence from Layer 1 storage. This is the biggest scalability benefit of Rollups.

 

    1. Optimistic Rollups


      Optimistic Rollups are constructions which enable autonomous smart contracts on Layer 2 using OVM. Borrowing heavily from both Plasma and ZK Rollup designs, Optimistic Rollups trades of some scalability to enable running fully general smart contracts on Layer 2, secured by Layer 1.

      It promises an easy way to migrate existing decentralized solutions and services with a reasonable degree of security/ scalability trade offs. Karl Floresch goes into more detail on Optimistic Rollups and OVM.

    2. ZK Rollups


      ZK Rollups is a Layer 2 solution where data is placed onchain.

      With ZK Rollups operators generate Zero-Knowledge Proof (SNARK) for every state transition, making it impossible for operators to commit an invalid or manipulated state.

      ZK Rollups should theoretically be able to process up to 2,000 transactions per second. 


ZK Rollups solution differs from Plasma as it solves the mass exit problem, meaning that validators are unable to freeze funds and users have no time limit to move funds out of Layer 2 even in case of emergency This makes ZK Rollups a great fit for both DeFi or cold wallets for Hodlrs. 

Its most known application is Loopring, a next-generation high-performance decentralized exchange and payment protocol also focused on scalability.

The challenge with ZK Rollups is the fundamental limitation in transaction amounts [2000 transactions per second], with current real world implementation, Loopring, achieving 500 transactions per second. 

Also, while transaction costs are lower than Ethereum, they cannot in theory be more than 100 times cheaper than Ethereum’s transaction costs. Most like 20 – 50 times cheaper according to our math.

Also, ZK Rollups are the more sophisticated and long term answer. Which as always, will take a longer time to implement. 

zKRollup

4. Payment channels

We have written extensively about payment channels both within our micropayments whitepaper released in 2019, and in several of our more recent updates:

    1. Introducing micropayments on Mysterium Network
    2. MYST, Migration and Mainnet
    3. Mysterium Network begins token migration

TL;DR

Payment channels fuse together the technologies and methodologies used by other payment solutions such as State Channels.

With payment channels parties exchange digital value without committing transactions to the blockchain. Only channel opening and closing are logged on the blockchain.

To open payment channels both parties have to lock some funds into a multisig smart contract. This allows both parties to update channel balances without the fear that funds will be double spent or stolen.

As these microtransactions are “commitments” rather than on-chain payments, we drastically reduce the total amount of transactions sent to the blockchain.

We dive deeper into what payment channels are, and how we envision them functioning in our micropayments whitepaper. Read more.

How are payment channels different from Plasma, ZK Rollups and Sidechains?

Layer 2 solution

From a technical perspective, Plasma and zkRollups – all fall into a wider umbrella of sidechains. Sidechains are fundamentally different in nature from payment channels. We highly recommend “Evaluating Ethereum Layer 2 Scaling Solutions: A Comparison Framework” for a deeper dive into the distinct differences between sidechains.

In our comparison of Layer-2 solutions, we saw that while Rollups are great in terms of security and give significant scalability over Layer 1, they do not completely solve for the challenge of micropayments needed for Mysterium Network. They have a limit of 2K tx/sec, and they don’t give users instant finality. Also the transaction price is still too expensive for $0.001 transactions.

In the following section we will explain how payment channels, and more specifically unidirectional payment channels are the best fit for the peer to peer decentralized virtual private network use case in Mysterium Network.

Payment channels are different as they are:

  • Flexible – i.e. able to live on layer 3, or 2 
  • Cheapest solution when it comes to transaction fees.
  • Most scalable in terms of peer to peer payments.
  • Could be used for cross-chain payments (e.g. from one side-chain to another, or from Layer 1 to Layer 2).

Sidechains (broadly speaking to include Plasma and ZK Rollups) bring with them limitations on transaction amounts. Payment channels on the other hand, could be foundational to cross-chain interoperability as they allow payments to move from one chain to another without custody – with zero costs, and in seconds. Don’t take my word for it, hear it from Vitalik himself.

Unidirectional vs Bi-directional payment channels

Why unidirectional payment channels?

In the case of Mysterium Network, most network actors are either consumers or providers (nodes) of VPN service. Payments are always going in one direction. There is only a need for providers (Mysterium Nodes) to rebalance the payment channel and settle earned tokens on Layer 1. 

Bi-directional payment channels are more complex and do not give Mysterium Network’s use case much value. Also, thanks to unidirectional payment channels our consumers don’t need to have apps online all the time to ensure that their funds will not be stolen. 

 

Payment Channels as Layer 3, on top of Layer 2 

As we continued to take apart different Layer 2 solutions, we came to the same conclusion. Payment channels – as described in our micropayments whitepaper – should be on Layer 3. 

  • Consumers of VPN service need at least one onchain transaction to top up their funds. With payment channels on Layer 3, we can capitalise on cheaper channel openings (account creation) and top-ups on Layer 2. So adding $1 to your dVPN app account will cost users 2 cents, not 2 dollars. This would greatly reduce friction in onboarding new users.
  • Providers of VPN service need at least one onchain transaction once in a week or so to receive their funds. In payment channels, once the value of the offchain commitment is bigger than the channel size, a settlement onchain is required. By offering flexibility we can let providers choose whether they choose to settle on Layer 2, or Layer 1.

    Why is this important? Some providers may send their funds to DeFis or exchanges often, this will mean moving from Layer 2 to Layer 1 regularly. As such being on Layer 1 makes more sense for providers with this particular profile. 

In a world of zkrollups, payment channels can be used as bridges within networks. – Vitalik Buterin

In conclusion: Multichain, cross-chain and the future of interoperability

We did all that research to find a solution for our own problem. We believe that we found it! 

Just to recap:

  • Ethereum transaction fees are killers for decentralized applications and services which depend on cheap onchain transactions
  • ZK Rollups seem to be a promising Layer 2 solution, but unfortunately, it is new and smart contract support is only on testnet. We will need to wait for at least half a year or longer. 
  • There are good sidechains such as xDAI and Matic network, but no one knows which will gain mass adoption or how they will evolve. Being tightly connected to one blockchain is a risk to Mysterium Network, or any decentralized service. It may mean a hard and complex migration in the future. 
  • Payment channels are able to be used in cross-chain transactions – this means that consumers of VPN services can hold their wallets on Layer 2, while a provider is on a different Layer 2 or even on a Layer 1 blockchain. 

Mysterium Network will be deployed on multiple chains and we already are working on cross-chain payments support. We see this as the future for most payment channel-based solutions. 

Exciting updates to our roadmap and partnership announcements coming soon. If you haven’t already – Get Mysterium VPN: Free on Testnet.

Mysterium – now on uniswap 🦄

Mysterium integrates UniswapV2 and launches MYST liquidity pool!

Mysterium Network is fast approaching its launch on mainnet. This exciting event will allow all users to pay for privacy services using our native MYST token, which has not had its utility potential unleashed – until now. 

MYST is the token at the heart of Mysterium Network. It acts like digital fuel, serving various functions and bringing different network security and stability functions into Mysterium Network.

As stated in our founding whitepaper, MYST is a utility token. Therefore, providing liquidity for MYST prior to our dVPN launch has not been a focal point for the project. However, we anticipate that purchasing MYST may become a friction point for many new users who are keen to explore and use Mysterium VPN. Most of our users are not crypto-savvy, and may be unsure about where to begin or where to find the token.

Read: Did you know we’re upgrading the MYST token? Learn how to migrate your tokens here.

After collecting responses from a community survey, we learned that half of our current node runners prefer to receive their payments in Ether (ETH). Our survey has also shown considerable demand for payment settlements in Ether or stable coins. This is a feature we will look to implement in the future.

Our main focus is on growing traffic within the network, and in making it more resilient. We want to remove friction in our user journey, first for early adopters who hold crypto, and then to a wider audience. The large community of ETH and other ERC-20 token holders are a natural fit for Mysterium VPN. But they need an easy way to swap for MYST, creating a seamless onboarding experience.

To meet these requirements, Mysterium will be integrated with popular DEX platform Uniswap.

What is Uniswap?

Uniswap is a decentralized exchange. A decentralized exchange (DEX) is a peer to peer marketplace for cryptocurrencies that involves smart contracts instead of traditional third parties, such as brokers. It allows users to trustlessly swap Ethereum-based tokens. You can swap your tokens directly with other tokens supplied by their liquidity pools. 

A platform like Uniswap is just the interface for accessing these liquidity pools. Instead of a traditional order book, Uniswap pools all tokens into smart contracts, and users trade against these liquidity pools. Liquidity pools can be funded by projects or by users themselves, which are often rewarded with a percentage of the fees generated from all trades. Anyone is able to swap tokens, add tokens to a pool, or create a new pool (list a new token) on Uniswap. 

With decentralised exchanges, the process of trading is automated by smart contracts. You don’t have to have an account with the individual DEX platform – you just link your preferred wallet which signs and executes the transactions. 

How will the integration improve your experience?

We have created a liquidity pool for MYST on Uniswap. We’ll then integrate this pool with Mysterium’s backend, so it connects to our payments protocol, Hermes. Hermes is Mysterium’s native payments infrastructure which enables P2P transactions between all users (service providers and their customers).

Our service providers (node runners) will also be able to choose whether their payments are settled in MYST, or swapped directly into ETH, with a click of a button. This can also be done automagically, with settlement features that allows nodes to set certain thresholds which settle automatically when they are met. In the future, DAI will also be available as a payment option.

On the user side, this integration enables us to onboard broader communities into Mysterium Network. New users will be able to send ETH (or an ERC-20 token of their choice) to their Mysterium account, and receive MYST almost instantly to begin paying nodes for their services straight away. This means that a user won’t necessarily need to know what MYST is to use Mysterium Network. 

The MYST community is invited to provide liquidity to the Uniswap pool. This also provides an opportunity to earn a share of all fees from trades made through the Uniswap pool. 

In the future, we plan to integrate with other DEX platforms like Changelly to help connect BTC and other blockchain communities into Mysterium Network.

Ready to dive into MYST liquidity pool?

Excited about Uniswap x MYST? So are we. You’ll be able to provide liquidity yourself or simply swap your ETH for MYST ahead of our launch. 

Mysterium Network wouldn’t exist without its committed community of node runners and users. For this growing community of netizens committed to keeping the internet free, we are endlessly thankful. Interested in helping? Find out how you can run a node.

If you haven’t already, check out Mysterium dVPN available for Windows, Mac and Android. All our client applications are currently in testnet – so are currently free for a limited time. Try them out!