The NEST Protocol (NEST) is a blockchain-based oracle network. The protocol provides third parties with access to valuable pricing information. How does it work? Is it a coin scam? Let’s find out with Bforum now.
What is NEST Protocol ? How does NEST work?
Nest Protocol is a distributed pricing oracle network based on the Ethereum blockchain which uses a special “quote mining” mechanism to ensure that off-chain data is synced to on-chain prices. A distributed pricing oracle network provides price information outside of the blockchain in a decentralized way, without a single point of entry or a governing body.
The technology used to collect that information is called an oracle. To be effective, oracle data needs to satisfy the following five points:
- It needs to be accurate
- It should react quickly to market movements
- It has to be resistant to price attacks
- It needs to be verified directly
- It doesn't require a centralized review system
The NEST token plays a vital role in the actions of the network. Users need to hold NEST to join the network systems. NEST is an ERC-20 compliant token that can be found on most top-performing DEXs at this time. Users can also leverage NEST to send value globally in a permissionless manner. Notably, NEST has a predictive issuance with all tokens generated directly from miners.
Is NEST Protocol scam?
The project lacks the team’s identity. Some sources noted that the founders of NEST coin are Yossi Peretz who is a software engineer and entrepreneur. Yossi Peretz has been working on blockchain technology since early 2017 and founded NEST Protocol in late 2017 to create a new way to interact with blockchain. There also are two co-founders whose names are David Sacks, and Tim Berners-Lee.
In our cases, the information about the team above is not enough and transparent. We have tried to search in order to find the details about them but there was nothing we could find on the Internet. Are they trying to hide their identity? This might be a big red flag.
In addition, Nest Protocol also has some disadvantages such as:
The maximum supply of NEST tokens is 10 billion. That is a relatively high maximum supply compared to other protocols. So why is this a problem? Well, high supply sometimes leads to low demand, which can lead to low prices.
NEST Coin may need to be stored in a hardware wallet to protect against the risk of hacking and theft. Luckily, the project is still be safe until now.
The project is still very new in the market that no ones talking about this. Do you think NEST Protocol is a scam project which will disappear in a rug pull in the next few months or do you think NEST Protocol is here to stay? And more importantly let us know your experience and warn others if you have noticed something suspicious.