What is Ankr?

The crypto landscape we see today is very different from how it initially started. User experience has improved dramatically, to the point where sending a crypto transaction is no different than sending a text. This major upgrade is in part thanks to the friendly user interface, but more importantly, thanks to the infrastructure development that has been constantly happening behind the scenes. 

To paint the picture: in the early days, users had to jump through multiple hoops to make a crypto transaction. The most technical part was running a node, which enabled the user to broadcast the transaction to the network. 

Running a node an essential part of keeping the blockchain decentralized. It requires users to store a copy of the blockchain on their computer and constantly run the most updated version. In the event that one actor tried to make an invalid transaction, nodes can separately check with their copy of the ledger and decide that his transaction is not corresponding to the truth.

Jumping back to the present, users don't have to think about running a node. That's because the dapp is running a node for them. In other words, the dapp is responsible for broadcasting users' transaction to the network.

Just like running data servers, problems can arise with running a node. In the event of a bug, developers need to be on their toes and upgrade the latest version. They need to keep the nodes synced at all times and communicate with other nodes in the network, not to mention the increasing storage requirements. As transactions increase, so does the size of the node. Running an Bitcoin node takes 432 GB of space, Ethereum's node is 650 GB, and it continues to go up.

It's a lot to ask of a crypto project that strives to create new utility in the first place. Over time, dapps have delegated the task of running a node to third parties. In exchange for a fee, developers can buy themselves time to focus on what truly matters: building a great product.

Ankr is one of the pioneers in Web3 infrastructure. The company started out in 2017 with a single goal: make blockchain adoption easier. Ankr’s decentralized infrastructure benefits DeFi platforms, NFT projects, blockchain games, and dapps of all kinds.

To explain Ankr Protocol, it's important to mention they are not a blockchain. The company offers a suite of tools for builders, stakers, and enterprises. Participants in the Ankr Protocol broadly fit into two categories: clients and operators.

Clients are the users. They can be individuals, projects or enterprises. A project or an enterprise looking to accept crypto payments will usually request to have its own node, ran by Ankr node operators. Clients will pay a fee which goes to the Ankr node operators.

Ankr also has a token, which is used for paying node providers. ANKR's value is determined by the amount of traction that Ankr Protocol gets. As the number of clients increases, the price of ANKR will go up. 

Although Ankr had no incidents in regards to its node operators, Ankr was subject to a hack. The attacker, confirmed to be an employee, compromised the private key for the staking rewards tokens, aBNB. He managed to get away with $5M by minting aBNB out of thin air. 

Ankr executed a recovery plan for the community, which involved compensating its liquidity providers, lenders and other users affected by the exploit. As a security measure, Ankr implemented multi-sig authentication for future updates. 

When you hear about a protocol getting hacked, usually it has to do with a clever hacker that exploited a bug in the code. This time, it was an inside operation for an isolated case – only one liquidity pool has been affected.

How does Ankr work?

Ankr Protocol derives its value from the suite of tools they offer to developers and projects. Most of the services are technical, as they relate to the infrastructure required to run a blockchain. Over time, Ankr developed new products meant to make crypto adoption easier. 

If we get too technical, don't get discouraged. Understanding how Ankr works helps appreciate the value it offers to crypto projects.

Ankr RPC & API Service

The Remote Procedure Call, or RPC, is a term used in distributed computing. RPCs allow communications with servers remotely and provide the ability to execute programs in a separate location. In the context of blockchain, an RPC allows access to a server node on the specified network and allows you to communicate and interact with that blockchain.

In order to interact with a blockchain, we need a way to access the information through a generic option. RPCs make it possible to view your balance, create a transaction, or interact with a smart contract. You may have come across RPCs when connecting to a custom network. Upon introducing the RPC details (available in the project's documentation), you are able to communicate with the blockchain server.

The Application Interface Point, or API, is feeding dapps with information from other blockchain. If the RPC acts as the bridge for transactions, then the API aggregates the information. APIs provide access to information such as market prices, wallet services and transaction data. They play an important part in making DeFi protocols keep up with the market updates.

Having a dedicated API and RPC helps developers interact with blockchains without competing traffic from other users on shared servers. Ankr's API offers access to the entire blockchain data without doing the setup work yourself.

From a builder's standpoint, having access to the fastest datapoints is crucial for the dapp experience. Which is why Ankr offers a premium service with prioritized traffic, advanced APIs, and unlimited requests.

If you are a small project, or an enthusiast developer, Ankr offers instant RPC requests and access to all chains for free. The best part is that no KYC or login is required!

Ankr Liquid Staking

Liquid staking is a relatively new feature that belongs to PoS chains. In the Proof of Stake consensus, holders can lock up their tokens to become validators. For the duration of the lockup, stakers receive a portion of the network fees. Liquid staking breaks down the limitation of lockups by making the staked tokens tradeable, hence the "liquid" component.

Liquid staking tokens are the equivalent in value with the staked token at a 1:1 ratio. Because Ankr is hosting nodes across the most popular blockchains, users can stake with Ankr, and use their liquid tokens on DeFi platforms. Ankr goes a step further in improving the DeFi experience by facilitating bridges. Users can move their liquid staking tokens to other networks, where they may find exciting yield opportunities. Users also have the option of exchanging their liquid tokens for the underlying asset.

Ankr Gaming SDK

The Gaming SDK represents one of Ankr's initiative in the Web3. Launched under the name Mirage Protocol, it is a platform that equips your games with web3 capabilities such as, in-game currenies, NFT support, and wallet support. For the gaming developers, Ankr's SDK is compatible with Unity
and Unreal Engine, two of the most popular game development engines. 

Ankr AppChains

AppChains represent a creative solution for dapps that want to create a dedicated experience. If Ethereum, Avalanche, or Polkadot don't fit your needs, AppChains helps you create your own blockchain with the specs of your choice. The benefit of running your AppChain is that your dapp won't have to compete for traffic with overcrowded blockchains. Having your custom blockchain comes with low fees, fast transactions, and security. 

Ankr gives developers to build AppChains by themselves, or with the help of the Ankr team. If you are interested to create your AppChain, check the documentation on their website. 

Ankr Enterprise Solutions

This service is for the big players looking to enter Web3 the right way. Ankr's enterprise solutions have a dedicated team of experts that help companies set up their blockchain infrastructure tailored to their needs. Crypto exchanges such as Binance, Biki, and Compound are also using Ankr's Enterprise Solutions because execution needs to be flawless. Ankr offers its node integration services, analytics, and API solutions, in order for these companies to serve millions of customers.

How to make money on Ankr?

Making money on Ankr is possible in two ways: by using their liquid staking services, or by joining their network of node operators. Indirectly, Ankr offers the necessary tools for developers to create their dapp. Since you haven't signed up for blockchain coding 101, let's get into the first two methods of making money on Ankr.

Ankr Liquid Staking

Staking is the most popular service on Ankr for the non-technical users. It represents a passive income that accumulates regardless of market conditions. The idea is simple: lock up your PoS tokens with Ankr's validators, and get a share of the network fees. Why do it with Ankr? Because it's very simple.

Solo staking requires you to set up your own node, monitor it, and make sure you don't get slashed. Pooling funds with other stakers takes minutes, and reduces the financial risk of getting slashed. On the good side, you can stake with smaller capital. Most blockchains require a sizeable amount of tokens in order to solo stake. On the downside, staking rewards are shared among all the participants, which results in a smaller reward. 

With Ankr you can stake on on networks like Ethereum, Binance Smart Chain, Polygon, and many more. In addition, you can stake Ankr's native token ANKR and get a juicier APY.

In order to stake on Ankr, follow the steps:

1. Head to the Ankr Staking platform 

2. From the list of options, choose the token you would like to stake

3. Click the “Stake” button 

4. Confirm permission for Ankr Staking to access your wallet

5. Choose an amount to stake

6. Click “Approve” and then “Send” to finalize your stake

7. Profit

When you stake your tokens, the capital is effectively locked for the duration. Ankr makes use of the popular concept of liquidity staking to unlock your crypto tokens. For example, you can stake ETH and unlock ankrETH, which can be used to provide liquidity on DeFi protocols. As more people trade, you can earn a share of transaction fees on top of your ETH staking rewards from ankrETH.

With the gained yield, you can reinvest the tokens to the liquidity pool to generate more yield, or sell them to buy more ETH. Repeating this operation periodically will add a compounding effect on your yield.

Ankr Node Provider

For the more technical users, they have the option to become a node provider on Ankr and get paid for servicing traffic. If you are ready to run a node with Ankr, the protocol offers your two options: run a node using Ankr servers, or run a node using your own hardware.

To promote decentralization, Ankr installs physical servers around the world that can be run independently by the community. Basically, Ankr is giving you all the necessary tools and support to contribute to decentralization. 

The second option implies that you have performant hardware that is ready to host a full node. The advantage with using your own hardware is that you earn more rewards. It also offers some degree of flexibility as to which networks you choose to run.

Because projects and enterprises all around the world use Ankr's infrastructure, users who wish to apply for node providers are held to high standards. They must pass KYC requirements, prove they can reliably fulfill their duties, and stake 50,000 ANKR as an insurance policy.

If you have time on your hands and master race PC, becoming a node provider with Ankr can be a lucrative business. You get rewarded with ANKR tokens. According to the plan, 70% of the tokens are distributed to the node — with 49% going to individual stakers and 51% allocated to node providers. The remaining 30% of tokens are given to the Ankr Treasury.

The risk associated with being a node provider with Ankr is that you are subject to slashing. Therefore, your participation can quickly turn into a full time job.

Price Prediction for Ankr — Can it hit $10?

Buying and hodling ANKR — the native token of the Ankr — is one way of potentially making money on Ankr.

The main utility of Ankr is to pay for its infrastructure services. Its value is directly correlated with the number of new startups requiring API and node infrastructure services from Ankr.

By looking at its current price, it’s natural to think about the chance of ANKR hitting $10 per token. This can happen sooner, or way in the future, and is determined by a couple of ever changing factors.

Let’s examine the potential growth of the ANKR token by analyzing its tokenomics. ANKR Chain’s current market cap sits comfortably at ${MARKET_CAP}. With {CIRCULATING_SUPPLY} ANKR tokens being in circulation today, that means a price of {PRICE} per ANKR.

How did we come to that calculation? It’s quite easy, the price of an ANKR token is equal to its current market cap divided by the number of tokens in circulation. Dividing ${MARKET_CAP} by {CIRCULATING_SUPPLY} gives us a result of {PRICE} for each ANKR coin. 

By changing the order in the simple formula above we can use it to calculate other things as well. This helps us a lot because we can deduce the market cap of ANKR at different token prices. Then, we can use the result to compare it to the current state of the network and see what would be required for ANKR to hit that price.

At a price of $10 per token, that means the current market cap of ANKR would equal ${{CIRCULATING_SUPPLY} * 10}. Remember that we arrived at this number by multiplying the amount of circulating tokens by $10.

Now let’s shift our attention to the fully diluted market cap.

Some blockchains may have their tokenomics built in a way that only a small percentage of tokens are circulating at the beginning. This can be misleading because we don’t have the full picture and only take into account the current number of coins released in the market.

The fully diluted market cap represents the total value of a coin if all tokens were in circulation. ANKR’s whole supply of tokens is {MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} ANKR which means that no more coins above that number will ever be created.

These tokens are not created at the discretion of a specific entity. They are created automatically by the network to reward different actors that keep it secure.

How does this impact the price of ANKR? Taking into account the current price of an ANKR token, that would result in a fully diluted market cap of ${MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY * PRICE}. ANKR coins that have been burned are not taken into consideration because they have been permanently removed from circulation.

Whether it seems gigantic or not, the number we came to above only takes into account the current price of an ANKR token. Doing the same calculation but with a price of $10 gives us a result of ${{MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} * 10} for the ANKR protocol fully diluted market cap.

These are all crucial details to know when calculating if ANKR can reach the price of $10 per token. If the diluted market capitalization is way too high, the token has little room left to grow. Blockchains in general have no cap on the value they can reach, whether that number seems possible it’s totally up to you.

The future of ANKR depends solely on its growth as a network used by tens and hundreds of millions of users. Given that many startups are just dipping their toes in Web3, it is possible for the price of ANKR to reach $10 and beyond by 2030.

If you’re looking to add some ANKR to your portfolio, the most trusted places to get some are Binance and Coinbase.