Virtual Private Networks (VPNs) are marketed as a way to browse the internet privately, but it is no secret that many VPNs sell user data to fund their operations. These products, which are used by over a billion people worldwide, are often not as private as advertised, as VPN operators have the ability to monitor user activities and sell that information to third parties. Roger Dingledine, founder of the Tor Project, points out that many VPN companies keep logs of user activities, even if they promise not to.
Nick Percoco, Chief Security Officer at Kraken, has been working with VPNs for over 20 years and notes that many VPN providers sell customer data despite marketing their products as secure and private. One provider, called “Hide My Ass,” requires users to take additional steps to stop the sale of their data. This lack of privacy by default is a concern for users who value their online privacy.
Nym Technologies, a Swiss-based blockchain startup, is attempting to disrupt the VPN market by offering a VPN that does not sell customer data. Using blockchain technology, Nym plans to create a self-sustaining economy for its VPN service. The company’s founder, Harry Halpin, believes that their technology, which adds noise to data to scramble surveillance tools, is a game-changer in the privacy space.
Halpin’s interest in privacy and anonymity was sparked during the Arab Spring protests, where he helped protesters in North Africa set up VPNs to protect their identities. Following the Edward Snowden revelations in 2013, Halpin realized the extent of mass surveillance and decided to create a solution to combat it. With funding from the European Union, Nym Technologies was established to develop mix-nets, which offer both online activity and identity concealment.
NymVPN, Nym’s new VPN service, is still in beta testing and faces challenges in terms of speed and market adoption. The company’s token has seen a significant drop in value since its launch, and there is limited activity on the blockchain. Despite these challenges, Halpin and his team are determined to build a better privacy-focused VPN that leverages blockchain technology.
While the DePIN sector within crypto has attracted significant investment, it remains largely unproven. Nym Technologies hopes to capitalize on the growing demand for privacy-focused technologies and believes that their mix-net technology is a step in the right direction. With the support of a $300 million innovation fund, Nym is aiming to establish itself as a leader in the privacy-focused VPN market.
