What is Keep Network?

Keep Network is a decentralized project that aims to provide privacy and security for Bitcoin users. In the world of crypto, Bitcoin is the king. However, the fact that it is not truly anonymous can pose a risk to its users. Bitcoin transactions are recorded on a public ledger, which means that it is possible for governments or hackers to trace transactions and identify users. To address this issue, a group of developers came up with the idea of making Bitcoin private.

To make Bitcoin private, the developers behind Keep Network leveraged the Ethereum blockchain to build an infrastructure that would allow for the creation of a private version of Bitcoin. This new version, known as tBTC, is now tradeable on DeFi platforms. Keep Network's tBTC allows users to keep their Bitcoin private while still being able to trade it on decentralized exchanges.

Since its launch, Keep Network has gained significant traction, with users flocking to the project to put their Bitcoin to work and earn passive profits. By utilizing tBTC, Keep Network is providing a way for users to enjoy the benefits of DeFi while also keeping their Bitcoin private and secure. As the world of cryptocurrency continues to evolve, Keep Network is at the forefront of innovation, offering users a new way to interact with Bitcoin and the wider DeFi ecosystem.

Keep Network derives its value manly from bringing Bitcoin to the DeFi ecosystem. The technology is innovative, secure, and provides users with a valuable service. As the DeFi industry continues to grow and evolve, Keep Network's technology is well-positioned to become a vital component of this ecosystem.

The Keep Network DAO plays a critical role in ensuring the safety and security of the protocol. The DAO is responsible for managing the development and governance of the platform, and it is designed to be a decentralized and community-driven entity that is responsible for making important decisions regarding the future of the project.

One of the key ways that the Keep Network DAO keeps the protocol safe is by providing a mechanism for community members to contribute to the development and improvement of the platform. Through the DAO, community members can propose and vote on changes to the protocol, which helps to ensure that the platform remains up-to-date and adapts to the market conditions.

The DAO also plays a key role in managing the network of nodes that power the platform. Nodes are responsible for securing and managing private keys on behalf of users, and the DAO is responsible for ensuring that these nodes are reliable and secure. This is accomplished through staking the native token of Keep Network, called KEEP.

KEEP is used as a staking token to secure the network of nodes that power the platform. Nodes are required to stake a certain amount of KEEP in order to participate in the network, and this helps to ensure that nodes have a financial incentive to act in the best interests of the platform and its users.

Keep Network had not experienced any major hacks or security breaches. However, it is important to note that no system is completely immune to the risk of a security breach, and it is always possible that a vulnerability could be discovered in the future. The Keep Network team is aware of this risk and takes a number of measures to ensure that the platform remains secure.

These measures include regular security audits, bug bounty programs, and ongoing efforts to improve the security and resilience of the platform. Additionally, the use of a decentralized network of nodes and threshold signatures helps to mitigate the risk of a single point of failure or malicious actor compromising the network.

How does Keep Network work?

Keep Network is a decentralized platform that is designed to provide a secure and private way for users to interact with Bitcoin and other blockchain-based assets. The platform is built on top of the Ethereum blockchain and uses a network of nodes to provide its core functionality.

At a high level, the Keep Network works by using a combination of encryption, threshold signatures, and other cryptographic techniques to enable users to securely store and manage private keys, which are used to access and control their digital assets. This is accomplished through a series of smart contracts that are deployed on the Ethereum blockchain and interact with the network of nodes that power the platform.

The network of nodes is responsible for managing private keys on behalf of users and ensuring that they remain secure and inaccessible to outside parties. This is accomplished through the use of a threshold signature scheme, which requires a certain number of nodes to collaborate in order to sign a transaction. This helps to ensure that no single node has complete control over a user's private key, and that the key remains secure even in the event of a node being compromised or malicious.

Keep Network tBTC

One of the key features of the Keep Network is its ability to enable the creation of tokenized versions of assets on the Bitcoin blockchain, called tBTC. The minting process works by creating a trustless, two-way peg between BTC and tBTC, which is an ERC-20 token that represents BTC on the Ethereum network.

Keep Network ensures that the value of tBTC remains pegged to the value of BTC by using a system of "bonds" and "fines" to incentivize signers to maintain the collateralization of the deposits. 

The bond is a deposit made by each signer when they join the tBTC system, which serves as a security deposit against any misconduct or failure to perform their duties. The bond is held in escrow in a smart contract, and it can be seized and used to cover any losses incurred due to the signer's actions.

Signers are required to monitor the deposited BTC and report any issues, such as attempts to steal or withdraw the BTC. If a signer fails to perform their monitoring duties, or if they collude with an attacker, their bond can be forfeited and used to cover any losses.

In addition to bonds, tBTC also uses a system of fines to encourage signers to remain honest and vigilant. If a signer makes an error or fails to perform their duties, they may be fined a certain amount of ETH, which is taken from their bond. This encourages signers to take their responsibilities seriously and perform their duties correctly, as the fines can quickly erode their bond if they are not careful.

The user can then use the tBTC on the Ethereum network for various purposes, such as trading on DEXs, using it in DeFi protocols, or sending it to other users. When the user wants to redeem their tBTC for BTC, they initiate a redemption request and the signers release the corresponding BTC from the deposit contract back to the user's Bitcoin address.

Keep Network tBTC v2

In 2021, Keep Network and NuCypher realized they share a common goal of making Bitcoin private on the Ethereum network. So their communities voted to merge under the KEANU proposal. It was a time of joy for crypto privacy proponents, but it was just the beginning.

In order to coordinate, Keep Network and NuCypher united under the same entity, the Threshold Network. This newly formed project also launched its own asset called the "T" token. It is a governance token that can be staked in order to secure the network.

Overall, Threshold Network strives to create an ecosystem of dapps that enjoy private transactions, with tBTC being one of the supported assets. 

But wait, there's more! Keep Network announced that they will implement tBTC v2 on the Threshold Network. This new iteration will help tBTC scale 100x, meaning tBTC can support 100,000 BTC (or, 1% of the total supply) being minted on the network. 

tBTC v2 will always be backed 1:1 by BTC and collateralized by a Coverage Pool. Coverage Pools are pools of collateral assets provided by passive investors, the underwriters, which risk their funds to ensure the safety of the peg in exchange for fees and rewards. Coverage Pools’ function is to be a backstop for tBTC, acting as the buyer of last resort in tBTC v1 and to insure against fraud in tBTC v2.

Coverage pools are created by depositors who want to provide insurance coverage to tBTC depositors in exchange for premiums. Depositors can choose to create their own coverage pool or participate in an existing one.

Depositors who want to take out insurance can then purchase coverage from one or more coverage pools by paying a premium, which is typically a small percentage of the total value of their deposit. The premium is paid in tBTC, and the coverage is provided for a set period of time, typically ranging from a few days to a few weeks.

If a deposit in tBTC v2 suffers a loss due to collateralization issues or other protocol failures, the depositors can make a claim on the coverage pool. The claim is evaluated by a group of arbiters who are randomly selected from the coverage pool members, and if the claim is deemed valid, the depositors receive a payout from the coverage pool in tBTC.

In exchange for providing coverage, the coverage pool creators receive a portion of the premiums paid by the depositors. This incentivizes depositors to create coverage pools and participate in them, as they can earn a profit by providing coverage and managing the risk.

How to make money on Keep Network?

As you can probably tell, making money on Keep Network implies holding some BTC in your wallet. The strategy behind Bitcoin hodling relies on the exponential appreciation of the asset, in part due to the halving cycles and the global adoption as the new monetary standard. If you are in no hurry about making money off Bitcoin, the safest strategy is to DCA and chill.

For those who want to make the best out of their Bitcoin, Keep Network unlocks extra utility for an asset that otherwise is siloed from the rest of the DeFi ecosystem. Imagine if you could use your BTC as collateral on a DeFi protocol, or farming your BTC for yields. With tBTC, users can finally put their sats at work on the Ethereum network.

Before we dive in, it's worth making a few specifications about the tBTC minting process. In order to bridge BTC to Ethereum you will need a Bitcoin address and an Ethereum address where your tBTC will be minted to. Before the minting process, Keep Network will ask you to provide a BTC Recovery Address. Providing a BTC Recovery Address means your Bitcoin will be safe, even in the unlikely case of an error minting. Based on these two addresses, the protocol will create a unique BTC deposit address.

To mint tBTC, follow these steps:

1. Open the Keep Network app

2. Click on the "tBTC Bridge"

3. Provide an ETH address and a BTC Recovery address to generate an unique BTC deposit address

4. Send minimum 0.01 BTC to this unique BTC Deposit Address. The amount sent will be used to mint tBTC

5. Initiate minting

6. Approve the transaction

7. Done 🥳

Congrats! You have now minted your first stats on the Ethereum network. Don't worry if the tBTC doesn't show up instantly. The lapsed time is somewhere between 1 to 3 hours. 

According to the Keep Network team, the bridge from tBTC to Bitcoin network is under construction. The ability to bridge BTC back to the Bitcoin network won't be enabled for 3 to 6 months. Hopefully, by the time you read this the bridge will be ready to go.

Threshold Network Staking + LP

With the merge of Keep Network and NuCypher, users have new ways to earn via the T token. This announcement confused newcomers who started wondering about the utility of their KEEP or Nu tokens. To make things easier, we will assume that both of these tokens have been converted to the T token. You can easily convert your KEEP and NU tokens to the newly launched T token via the Threshold Network app.

With your newly minted T token, let's start with the easiest way to make money: staking. As a staker, you can either set up your own node, or go with one of the vetted list of staking providers. The minimum stake is 40,000 T tokens, around $1460 at $0.041 per T token.

The easiest way to stake T tokens is to:

1. Open the Threshold Network app

2. Click on the "Stake" tab

3. Input the amount of T you would like to stake

4. Click "Stake"

5. Approve transaction

6. Profit

The T rewards are distributed monthly. The schedule emission is available on the Staking tab and is distributed by the Threshold Council.  

Ok, maybe you don't have $1460 just to stake on Threshold Network. That's perfectly understandable. You can still make money as a liquidity provider.

As a liquidity provider, you make money off the transaction fees. Threshold Network currently has two liquidity pools where you can put your T tokens at work. The APY is around 1%, not much considering Threshold Network launched in 2021. But it's honest work.

To provide liquidity on Threshold Network, follow these steps:

1. Open the Threshold Network app

2. Click on the "Liquidity Provider" tab

3. Select one of the two available liquidity pools

4. Select the amount of tokens you would like to deposit

5. Click "Deposit"

6. Approve the transaction

7. Profit

As Threshold Network grows, the opportunities of making money will also increase. Privacy is an important value to uphold. Before you start judging the staking requirements or the liquidity yields, think how many users will migrate to privacy-oriented ecosystems in the future.

Price Prediction for Keep Network — Can it hit $1000?

Buying and hodling KEEP — the native token of the Keep Network — is one way of potentially making money on Keep Network.

By looking at its current price, it’s natural to think about the chance of KEEP hitting $1000 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 KEEP token by analyzing its tokenomics. KEEP’s current market cap sits comfortably at ${MARKET_CAP}. With {CIRCULATING_SUPPLY} KEEP tokens being in circulation today, that means a price of {PRICE} per KEEP.

How did we come to that calculation? It’s quite easy, the price of a KEEP 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 KEEP 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 KEEP 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 KEEP to hit that price.

At a price of $1000 per token, that means the current market cap of KEEP would equal ${{CIRCULATING_SUPPLY} * 1000}. Remember that we arrived at this number by multiplying the amount of circulating tokens by $1000.

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. KEEP’s whole supply of tokens is {MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} KEEP 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 KEEP? Taking into account the current price of a KEEP token, that would result in a fully diluted market cap of ${MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY * PRICE}. KEEP 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 a KEEP token. Doing the same calculation but with a price of $1000 gives us a result of ${{MAX_SUPPLY - TOTAL_SUPPLY + CIRCULATING_SUPPLY} * 1000} for the KEEP protocol fully diluted market cap.

These are all crucial details to know when calculating if KEEP can reach the price of $1000 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 KEEP depends solely on its growth as a network used by tens and hundreds of millions of users.

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