What Is Ankr? (ANKR)
ANKR Coin Explained
Ankr aims to make the adoption of Web3 easier by offering a platform where users can deploy nodes on Proof of Stake (PoS) blockchains, stake their PoS tokens and access decentralized finance (DeFi) applications.
Running a node for a PoS blockchain is often perceived to be an attractive way to earn income. However, significant hardware investments and technical proficiency are often seen as barriers to getting started.
Ankr seeks to address these challenges by simplifying the node creation process to just a few clicks for dozens of blockchains. Node operators only have to pay a monthly fee to Ankr in return for the various services the platform provides.
Ankr first launched as a Distributed Cloud Computing Network. Its goal was to utilize excess capacity for cloud computing from a network of idle machines rather than needing to rely on a single cloud computing provider. Since then, the team has expanded its efforts to make participating in, building on and using blockchains easier for all.
Ankr’s native cryptocurrency, ANKR coin, serves as a payment method across the Ankr platform.
Who Created Ankr?
Ankr was founded in 2017 by two former college roommates from UC Berkeley — Chandler Song and Ryan Fang — along with Stanley Wu, a former Amazon computer engineer.
Song interned at Amazon Web Services, where Wu was his manager. One night after work, Song, Fang and Wu discussed a paper on Proof of Useful Work. That discussion ultimately led to the creation of Ankr, where Song became CEO, Fang became COO, and Wu became CTO.
The Ankr team raised $18.7 million over six days from their first token sale. The team conducted a presale that raised $15.9 million, and ther sale open to the general public raised $2.75 million. In total, 3.5 billion of the 10 billion total tokens offered were distributed.
Ankr has also raised tens of millions of dollars from leading names in the blockchain investing space, including Pantera Capital and NEO Global Capital (NGC).
How Does Ankr Work?
Ankr’s product offerings can broadly be categorized into two main functions:
Ankr recognizes that not every user has the resources or technical capacity to launch a node from scratch or participate in the validation process on a Proof of Stake blockchain. Whether they are looking to launch a full node storing the chain’s complete information or a validator node storing only the current state of the chain, Ankr simplifies the process for individuals or developers across dozens of blockchains including Bifrost, Tron and Kusama.
Beyond avoiding the complexity of setting up a node, Ankr oversees the performance of the node to make sure users’ staked funds are not penalized for dishonesty or downtime.
Ankr has also sought to advance the adoption of Web3 by simplifying the deployment of decentralized applications (dApps) using its application programming interface (API). Ankr’s infrastructure allows developers to gain access to dozens of leading blockchain platforms, including Ethereum, Polygon and Polkadot, without the need to study complex documentation. Ankr’s API solutions should accelerate implementation timelines while also providing dApps with more timely and accurate data.
Ankr also simplifies the onboarding process for individuals looking to stake tokens on various blockchains and help validate transactions. For example, staking 32 ETH is required to become a validator for the Ethereum 2.0 blockchain on top of needing the technical proficiency to set up and maintain a node.
Using Ankr’s StakeFi, individuals can stake as little as 0.5 ETH, which is automatically routed to the pools with the highest yield. The platform is non-custodial, meaning users can keep their assets in their wallet, without having to lock up their funds in a different platform. In return, users receive aETH (a synthetic token on the Ankr platform which reflects the value of ETH) and additional rewards, which can be used to access decentralized finance applications and protocols.
Why Does ANKR Have Value?
Ankr’s cryptocurrency, ANKR, serves as a medium of exchange on the Ankr network and users can pay for services such as the monthly fee to run a node or to access Ankr’s API service.
ANKR also incentivizes network participants and plays a role in the governance process of the network. By owning and staking ANKR coins, users gain the ability to vote on network upgrades, with each vote being proportional to the amount of ANKR cryptocurrency they stake.
Like many other cryptocurrencies, the supply of ANKR is limited to a maximum supply of 10 billion ANKR coins.
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Why Use Ankr?
Those that see Ankr as a reputable provider of critical Web3 infrastructure may find value in the Ankr platform and its ANKR token.
ANKR may be a worthwhile investment for those that see value in being able to more efficiently set up nodes on a Proof of Stake blockchain.
Those looking to more quickly develop applications that utilize multiple Proof of Stake blockchains may also find value in Ankr and the ANKR token that supports the network.