The T token has two primary functions within the Threshold network. First, it is a utility token that is used to stake nodes. Node operators receive fees from the various applications that rely on Threshold's cryptographic primitives. Second, the T token is a governance token, allowing users to participate in the decision-making process of the Threshold DAO by locking their tokens in coverage pools. By underwriting collateral risk in the network, users can earn yield in exchange.
What are Threshold's cryptographic primitives and their use cases?
Threshold provides a suite of advanced cryptographic building blocks that enable a range of applications and use cases:
Proxy re-encryption (PRE): Allows data to be securely shared and transferred between parties without the original owner's direct involvement.
Threshold signatures (TSS): Enables the creation of digital signatures in a decentralized manner, where multiple parties must collaborate to sign a message.
Distributed key generation (DKG): Allows for the creation of cryptographic keys in a distributed fashion, improving security and resilience.
Random beacon (RB): Provides a source of randomness that is verifiable and tamper-resistant, crucial for applications requiring provable fairness.