T Threshold Network

Use Cases of Threshold Network

The Threshold Network offers several key use cases that leverage its decentralized threshold cryptography services:

• Decentralized Finance (DeFi): Threshold Network enables secure and censorship-resistant financial operations. For example, tBTC, a decentralized and permissionless Bitcoin to Ethereum asset bridge, allows Bitcoin holders to access DeFi platforms without relying on intermediaries. This integration opens new avenues for investment and innovation while preserving Bitcoin's intrinsic value.

• Privacy-Preserving Access: Threshold provides tools for privacy-preserving access control through services like TACo, an end-to-end encryption plugin. This ensures that sensitive data is managed securely and redundantly by groups of independent nodes, eliminating the need for centralized authorities.

• Community Governance: The Threshold Network fosters community-led decision-making through its DAO (Decentralized Autonomous Organization). Token holders can participate in governance by voting on proposals, ensuring that the network is run by its community and aligning with the principles of decentralization and user sovereignty.

• Stablecoin Collateralization: Threshold enables the creation of stablecoins like thUSD, which can be collateralized with tBTC. This provides a secure and decentralized way to stabilize value within DeFi ecosystems.

• Data Protection: The network offers robust features to secure user data through decentralized encryption services. This includes proxy re-encryption (PRE) services that allow for secure and controlled data sharing, ensuring that data ownership and privacy are maintained.

These use cases demonstrate how Threshold Network addresses core challenges in Web3 around security, privacy, and data control, making it a key layer for privacy-centric blockchain applications.

Pros of Threshold Network

• Enhanced Security: Threshold Network uses threshold cryptography, distributing sensitive operations across multiple independent entities, which must collaborate to complete tasks. This mechanism ensures that even with a few malicious actors, the system remains secure and operational.
• User Sovereignty: The network empowers users with total control over their digital assets and private data, addressing privacy concerns on blockchains.
• Decentralized Services: It provides a suite of threshold cryptography services for Web3 applications through a decentralized network of nodes, including proxy re-encryption (PRE) and tBTC v2, a decentralized Bitcoin to Ethereum asset bridge.
• Governance and Rewards: The T token functions as both a utility and governance token, allowing users to stake, run nodes, earn rewards, and participate in network governance.

Cons of Threshold Network

• Complexity: The technology's complexity may limit its adoption and application scope.
• Cost Issues: The network faces cost challenges that need to be addressed to ensure competitiveness and user satisfaction.
• Performance Challenges: Performance issues must be properly managed to maintain the network's efficiency and reliability.
• Adoption Barriers: Despite its promising features, the network needs to overcome existing shortcomings and challenges to achieve widespread adoption.

Founders of Threshold Network

The Threshold Network was founded by key individuals from two decentralized projects, Keep Network and NuCypher, which merged to form Threshold Network. The main founders include:

• Matt Luongo: Founder of Keep Network and a key figure in the formation of Threshold Network.
• MacLane Wilkinson: Co-founder of NuCypher, who played a crucial role in the merger and the development of Threshold Network.
• Michael Egorov: Co-founder of NuCypher, who contributed significantly to the creation and vision of Threshold Network.

These founders brought together their expertise and communities to establish a platform focused on threshold cryptography services, emphasizing decentralized governance and privacy in the Web3 ecosystem.

Investors in Threshold Network

Threshold Network has received investments from various entities. Here are some of the key investors:

• Michael Egorov: Participated in the Angel Round in April 2024.
• Hashcow Group: Co-invested in the Angel Round in April 2024.
• AladdinDAO: Contributed to the Angel Round in April 2024.
• The A-Team: Invested in the Angel Round in April 2024.
• MrBlock: Participated in the Angel Round in April 2024.
• DLC link: Co-invested in the Angel Round in April 2024.
• Rarible: Participated in a Strategic Round in July 2024.
• BlackRock: Co-invested in the Strategic Round in July 2024.
• Aave Companies: Contributed to the Strategic Round in July 2024.
• Curve Labs: Invested in the Strategic Round in July 2024.
• MagicEden: Participated in the Strategic Round in July 2024.
• Mechanism Capital: Co-invested in the Strategic Round in July 2024.
• Injective: Contributed to the Strategic Round in July 2024.
• Vessel Capital: Invested in the Strategic Round in July 2024.
• Babylon: Participated in the Strategic Round in July 2024.
• Centrifuge: Co-invested in the Strategic Round in July 2024.

Key Investment Rounds

• Angel Round: Raised $1.80M in April 2024.
• Strategic Round: Raised $1.60M in July 2024.

Investment Focus

• Stablecoin: 100% allocation in stablecoin investments.

Halal Status of Threshold Network

• Halal Status: Yes
• Reason: The Threshold Network is considered halal because its staking mechanism is based on work contribution rather than interest-bearing loans, aligning with Islamic finance principles. The project's revenue model is based on service fees rather than interest, and it does not involve activities prohibited by Islamic law such as gambling or excessive uncertainty (gharar).