ANKR

Most recent update: [June 26, 2023]  

What is Ankr? 

Ankr was founded to simplify the adoption of Web3 through a platform that allows users to deploy nodes on Proof-of-Stake blockchains, enable them to stake their tokens, and access Decentralized Finance applications. Since its inception, Ankr has made a niche for itself, creating a marketplace for cloud services through the utilization of shared resources. While running a Proof-of-Stake node could seem like a viable source of income, it requires significant investments in the hardware side of things and requires considerable technical proficiency, both of which can act as a significant barrier to entry. 

Ankr addresses the challenges such as a high entry barrier by simplifying the node creation process, giving users the ability to deploy blockchain nodes at a lower price than other options available in the market. Due to the utilization of shared resources, hosting on Ankr also removes any potential problems that could crop up with a high level of centralization or a single point of failure. Ankr is aiming to create a marketplace and infrastructure platform for Web3, allowing end-users and resource providers to connect to DeFi apps and blockchain seamlessly. Ankr’s cloud infrastructure is powered through distributed power centers that greatly increase stability and resilience. 

How Does Ankr Work? 

Ankr allows users to deploy nodes on Proof-of-Stake blockchains seamlessly and at a much lower cost compared to other services. Setting up a node has high costs involved when it comes to hardware requirements. It also requires significant technical know-how. Both these factors discourage most people from settling up their own nodes and earning rewards. Through Ankr, interested users can easily create and set up their own node in a few simple steps. Once the setup is completed,  users can access different blockchains. Ankr only charges node operators a monthly subscription to avail their services. 

Ankr enables cloud computing providers to rent out resources that are currently not in use. Providers that agree to rent out resources are compensated through the ANKR token. Ankr is looking to break up the monopoly of large companies that have traditionally dominated this space and hopes to grant greater access to users by providing a significantly more sustainable alternative. Ankr is also looking to disrupt the centralization prevalent in the cloud computing space, thereby also making the space more secure. Decentralized cloud computing resources offer better security, with no single point of failure and high decentralization. 

History And Founders 

The Ankr Network first came into existence in 2017 and was founded by Chandler Song and Ryan Fang, who were former college roommates from UC Berkeley. Song and Fang worked on Ankr with Stanley Wu, a former computer engineer. Song, Fang, and Wu had a long discussion about a paper on the concept of Proof-of-Useful work, which turned out to be the catalyst for Ankr. After the founding of Ankr in 2017, Chandler Song became the CEO, Ryan Fang became the COO, and Stanley Wu became the CTO. 

Ankr managed to raise nearly $19 million from their token sale, with $15.9 million raised during their  presale and their public sale, which managed to raise $2.75 million. Out of a total of 10 billion ANKR tokens, 3.5 billion were successfully distributed. Ankr has also successfully raised significant capital from strategic investments made by some of the biggest names in the blockchain space, such as NEO Global Capital and Pantera Capital. 

What Makes Ankr Unique? 

If we look at Web3, we realize that Ankr is not the only project in the space that is exploring the ease of contributing towards Web3. However, Ankr is one of the most important and prominent projects in the space, having the unique distinction of supporting a more secure, private, and decentralized internet. Ankr is pioneering the use of the Intel SGX, which allows decentralized applications to be executed in the hardware system, allowing Ankr to offer a cost-efficient solution for developers and users. 

Ankr’s network leverages computing power that is lying idle with providers, allowing users to access its resources at extremely affordable rates. This approach also allows companies to monetize computing power that would otherwise not be utilized, allowing them to maximize their returns. 

How Is Ankr Secured? 

Ankr ensures the quality of the network by using verification nodes in the validation process. This ensures the quality of the network is maintained while also dealing with any bad actors present in the system. Ankr uses a reputation-based system that ensures the system’s security, picking out only good actors. Actors are chosen on the basis of node contributions, and the network also carries out performance tests, ensuring the fair distribution of resources based on the workload. 

As mentioned earlier, Ankr also utilizes the Intel SGX, giving it a high level of security against both hardware and software attacks because the SGX is capable of processing executions within the hardware. Ankr’s Native Oracle System is also secure and requires verification before use, while the data source security is handled by TLS 1.2,1.3 and Perfect Forward Security. 

ANKR Token Supply Model 

The ANKR token is the native token of Ankr and has a total supply of 10,000,000,000 ANKR, with the current circulating supply at 8,162,899,378 ANKR. No new ANKR tokens will be minted once the initial supply of 10 billion is reached unless the community decides to implement changes in that regard. ANKR’s finite supply acts against inflation, ensuring that the token has value over the long term. 

Investors can purchase the ANKR token at all the major cryptocurrency exchanges such as Uniswap, Bittrex, Bithumb, Upbit, Digifinex, and Huobi Global because the ANKR token is a utility token. It has several use cases, allowing token holders to use it for staking, use it as a payment method in the Ankr ecosystem, and vote on different governance proposals. While the token’s main utility is to power the Ankr ecosystem, the token can also be used as an incentive to reward stakers and other participants on the network. 

What Gives ANKR Value? 

The ANKR token’s value can change rapidly depending on several external factors. The fact that the crypto market is generally more volatile than traditional markets also has an influence on the value of ANKR. ANKR’s total supply is limited to 10 billion ANKR, which can have an anti-inflationary effect, in the long run, ensuring the value of the token is maintained. Other factors that can influence the ANKR token are upgrades and other developments regarding Ankr and other market conditions prevailing in the wider economy. 

Risks Associated With ANKR 

While ANKR has significant utility, and with the advent of Web3 and decentralized applications, we could see the Ankr ecosystem gain traction and drive up the value of ANKR. However, one look at ANKR’s price chart shows two significant crashes in the past year. However, volatility remains an issue, and ANKR could be facing that in the near future. 

However, investing in crypto is a risky proposition, and ANKR faces the same risks as most other cryptos. 

Due Diligence  

Prior to listing Ankr on the VirgoCX Platform, VirgoCX performed due diligence on Ankr and determined that Ankr is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis including reviewing publicly available information on the following:  

• The creation, governance, and location of Ankr and/or its primary development team; 

• The supply, demand, maturity and liquidity of Ankr; and 
• Legal and regulatory risks associated with Ankr.  

Statutory Rights under Securities Legislation 

VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30, 2022 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada, do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision. 

References  

https://coinmarketcap.com/currencies/ankr/ 

https://currency.com/what-is-ankr-your-ultimate-guide 

https://medium.com/ankr-network/ankr-blockchain-nodes-an-essential-guide-fe186016aa03