Nillion (NIL) mainnet launch drops 12% of its market capitalization in the first 24 hours of trading

Private computation and storage network Nillion, dubbed the "blind computer," debuted its mainnet and native token NIL on Monday

Private computation and storage network Nillion has launched its mainnet and native token NIL, also known as the "blind computer."

The token's price has dropped 12% over the past 24 hours, despite major exchange listings and analyst optimism. NIL is now trading at 74 cents.

The token's market capitalization at inception was $165 million, but it has since decreased to $144.93 million.

The network's architecture combines a Coordination Layer called nilChain and Petnet, with the latter using privacy-enhancing technologies like multi-party computation, fully homomorphic encryption and trusted execution environments to deliver data security.

This so-called blind computing starkly contrasts traditional methods that require decryption before processing, which exposes sensitive data, such as personal health/finance information, to security threats and misuse.

Pivotal for AI boom

Nillion is decentralized platform designed to support private, high-value data storage and computation, and it works in the same way as blockchains decentralize transactions.

But there's a catch. Unlike blockchains focusing on transparent ledgers, Nillion uses Nil Message Compute (NMC), which allows computations on encrypted data without exposing (decrypting) it, ensuring that no single node or party has access to sensitive data.

This renders the nature of the data and the specific computations performed on it completely opaque to all nodes except the designated parties, hence the "blind" moniker.

The network's architecture combines a Coordination Layer called nilChain and Petnet, with the latter using privacy-enhancing technologies like multi-party computation, fully homomorphic encryption and trusted execution environments to deliver data security.

This so-called blind computing starkly contrasts traditional methods that require decryption before processing, which exposes sensitive data, such as personal health/finance information, to security threats and misuse.

Pivotal for AI boom

Nillion addresses the persistent challenge of data privacy and trust issues in sectors like artificial intelligence (AI) – personal assistants and Healthcare AIs – private order books in decentralized finance and many more.

"Nillion is tackling AI's biggest hurdle: trust. By weaving together cutting-edge privacy tech into a seamless backbone for AI, Nillion has the potential to become as fundamental to AI as SSL is to the web. If Nillion can make it as easy to use as it is powerful, they'll be powering the next wave of AI adoption," Yau Teng Yan, founder and chief evangelist at research firm Chain of Thought said in a detailed post on X.

"The privacy revolution is just beginning," Yan added.

The NIL token is the governance cryptocurrency used to pay network fees for blind computation and payments across Nillion's Coordination Layer and Petnet, securing the network through staking and participation in the on-chain governance module.

"NIL’s token economics is designed for adoption. NIL will power the network, securing operations while driving burn-based demand as usage scales," Yan noted.