Connect with us

Guest Post

Dapscoin Leading Innovation in Financial Privacy Tech Following Testnet

Guest Author



Dapscoin Leading Innovation in Financial Privacy Tech Following Testnet
Source: Daps

The debate over the future of privacy is often fueled by revelations of improper data practices by major social media companies, government surveillance programs, and the continuing trend towards a cashless society.

Privacy is a continually evolving campaign, and financial privacy is an area that cryptocurrencies have been able to address with some profound consequences. Cited by cypherpunks as the last barrier of defense for privacy in a digital age, innovation in the field of cryptography has reached a golden age following the emergence of Bitcoin.

From zero-knowledge proofs [ZKPs] to ring signatures, privacy-oriented cryptocurrencies are forging the path towards enhanced digital privacy. However, their endeavors are restricted by both the available technology and limitations of current blockchain archetypes. Notably, the inefficiency of ZKP technology used in ZCash known as ‘ZK-SNARKs’ from a computational perspective, as well as metadata leaks and the struggles to solve the ‘trust issue’ of public blockchains seeking anonymity.

DAPS Coin – the first staking and masternode privacy cryptocurrency implementation RingCT, Ring signatures, and Bulletproofs – had made some significant breakthroughs concerning the ‘trust issue’ and reaching the ideal iteration of an anonymous blockchain network.

The Harpocrates Protocol and The Trust Issue

Conceived from a vision of improving upon the shortcomings of Bitcoin and ZeroCoin, DAPS Coin Founder Adel de Meyer and CTO Andrew Huntley sought to offer the full anonymity of a cryptocurrency like ZCash without the trade-off of a trusted setup.

de Meyer said,

“The goal of the DAPS protocol is to create a fully anonymous staking coin and payment system with a trustless governance structure, based upon the latest technologies derived from both Monero and PIVX”.

The confluence of privacy technologies in DAPS Coin is called the Harpocrates Protocol, which is a truly unique protocol with Proof of Audit [PoA] as its foundation. Additionally, DAPS Coin incorporated advanced cryptographic primitives such as Bulletproofs and RingCTs that help Monero obfuscate transaction details on its ledger.

Merely working anonymous transfer protocols into a new cryptocurrency network is insufficient to overcome an endemic problem among privacy-oriented cryptocurrencies, the ‘trust issue.’

Huntley added,

“To be trustless, an objective third party must be able to verify the coin supply, check coin emissions, and make sure nodes are not being used maliciously. We do not believe that trusting the honesty of node owners should be the backstop against malicious actors.”

The trust issue is subsequently the reliance on a third-party of validators or node operators to ensure the authenticity of a blockchain. However, with an anonymous blockchain, node operators – even in a Proof-of-Work system – can collude off-chain to run their nodes maliciously, and trusted setups enable opportunities for malicious parties to mint unlimited supplies of coins without anyone knowing.

The problem then becomes: How do you verify the authenticity of the network and supply without, to some extent, relying on a third-party?

DAPS Coin introduces a proprietary engineering feat, Proof-of-Audit [PoA] – explicitly designed to mitigate trust requirements in an anonymous cryptocurrency network.

de Meyer pronounced,

“Proof of Audit is a consensus model whereby the validity of the network is maintained by checking that the maximum supply of the chain has not been altered in any way”.

The mechanism works in a clever way. Consensus and block production in DAPS Coin is produced via a hybrid design of Masternodes and Proof-of-Stake [PoS]. Both PoS and Masternode validators produce blocks, which confirm an explicit number of transactions have occurred over a specified amount of time, and each sum of inputs and outputs in the system must not affect the total number of coins in the network.

PoA subsequently acts as a checkpointing mechanism whereby randomized sequences of produced PoS blocks are audited by a PoA block occasionally.

Huntley shared,

“It audits the transactions and the PoS block itself to make sure that the totals still match up and that the total supply has not changed”.

However, one of the problems that emerge in PoS networks is known as ‘block injection,’ and needs to be overcome or risk sacrificing the authenticity of the chain.

de Meyer remarked,

“Block injection is a common method of attack in PoS chains where a bad actor will attempt to inject a fake PoS block into the chain just before the miner kicks in to validate the chain”.

A successful block injection attack can give a malicious node the longest chain, enabling them to front-run and manipulate the blockchain. The random time sequencing of the PoA verification mitigates this problem by making it impossible to inject a block accurately. A rejection of an attempted block injection would subsequently enable other validators to ban the node from the network.

A complicated and ambitious endeavor, DAPS Coin’s initiative to solve the ‘trust issue’ while concurrently bootstrapping an anonymous staking coin is an impressive feat. The project’s first run of their testnet was successful, and they moved onto the second round of testnet beta testing following the triumphant proof that their PoA mechanism is viable.

The DAPS Coin mainnet is also on the horizon, promising to provide a first for the broader cryptocurrency industry – an anonymous staking and masternode network with a solution to the ‘trust’ issue. The DAPS Coin team presented their breakthrough findings at Consensus 2019 in New York City amid one of the premier cryptocurrency conferences in the world. The team was also selected as one of ten lucky blockchain projects to pitch the media and investors during blockchain week in New York.

Follow us on Telegram | Twitter | Facebook

AMBCrypto is not responsible for the content included in this article. Readers' discretion is required while visiting the links given in the report as AMBCrypto is not responsible for the products or services.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Guest Post

Balancing Cypherpunk Principles and UX With Multi-Party Computation

Guest Author



Balancing Cypherpunk Principles and UX With Multi-Party Computation
Source: Pixabay

One of the fascinating, and frustrating, aspects of the broader cryptocurrency space is the prevalence of trusted third-parties in an ecosystem built on the notion that trusted third parties are security holes. From honeypot exchanges to custodial services with “bank-level encryption,” much of the crypto ecosystem is non-representative of its origins.

Without diving into the adverse outcomes of these third-parties in the ecosystem, of which there are many, one of the underlying frictions of centralized security is the inherent trade-off between security and user experience [UX].

The crypto landscape is esoteric enough as it is, let alone requiring users to manage their own keys and understand concepts like GAS on Ethereum. In fact, new user onboarding was named as the biggest obstacle to dapp development by projects on Ethereum. While there have been strides made in UX among many crypto products, ranging from DeFi tools to wallet interfaces, there is much work to be done.

The daunting task of converging security and UX into a safe and user-friendly experience has received a glimmer of hope in recent months, however, due to a unique subfield of cryptography–secure multi-party computation [sMPC].

A Wave of sMPC Innovation

The core concept of sMPC is to collectively derive a unique computation from a subset of individual fragments like non-trusting computers. Imagine a puzzle with individual entities, each holding a piece, and the final image only materializing after a specific threshold of pieces have been put together.

MPC has been lauded as the next fuel for innovation in onboarding users to crypto by reducing a significant portion of the barrier to entry — mainly key management.

“Ultimately, using sMPC, we can realize the separation in data of the right to use and the right of use, and directly calculate results on multi-source and heterogeneous ciphertext data,” detailed ArpaChain CEO, Felix Xu, in a ChainNode AMA. ArpaChain has emerged as one of the leaders in sMPC globally, and already has a functioning product on its testnet.

Their insights and innovation into sMPC represent a broader initiative to reconcile the issues of security vs. UX.

At a high level, sMPC empowers users to compute something over a large set of data without revealing their individual inputs, furnishing enhanced privacy, and a means to produce a specific outcome. Consequently, sMPC affords advantages over two existing modes of key management: multi-sig and hardware storage.

Hardware wallets and multi-sig are both complicated to use for mainstream users. Hardware storage is offline, and connecting it to online sources breeds security challenges. Conversely, multi-sig works to an extent, but services like Casa are out of the price range of most consumers and also out of their technical peripherals.

Hot wallets [i.e., online wallets] continually demonstrate their proclivity for being hacked, and while they offer the best UX, they are major security vulnerabilities — once again highlighting the quandary of balancing security and UX.

With sMPC, security is bolstered by the fact that no single entity controls the key, and UX is improved because there can even be “keyless” services using sMPC. The perfect crypto wallet does not exist, but sMPC may come to redefine that narrative.

Outside of wallets, the market for sMPC solutions for enterprises is enormous, and an area where ArpaChain is looking to make an impact.

“The ARPA project aims to provide businesses and individuals with private computing power and secure data flow solutions,” says Xu. “The entry point of ARPA is enterprise-level privacy data sharing.”

ArpaChain to The Rescue

Requiring developers to consistently worry about security vulnerabilities takes away from their ability to focus on improving UX and other aspects of blockchain-based applications. Similarly, continually encrypting and decrypting data creates high technical barriers, something which sMPC diminishes.

But some of the real magic also derives from the ability of sMPC to remain secure even in a hostile environment.

Xu stated,

“We have implemented an agreement to support the participation of any party, and as long as there is an honest node in it, it can ensure the security of the data. Either of these two points is a breakthrough, and as far as we know, the vast majority of projects can only support the involvement of two parties.”

This is a powerful feature. No longer do parties need to independently hold keys that serve as singular attack vectors. With such security assurances on the back-end, a better UX can be transferred to the front-end — such as “keyless” wallets — which are already happening.

Providing users with an experience that does not require key management is a compelling step forward for the industry. Add in the ability of exchanges and other financial entities to securely, and privately, compute functions over large shared data sets [i.e., blockchains], and sMPC just might live up to its impressive reputation.

Xu mentioned,

“Imagine multi-party joint credit information, data leasing, secure data analysis, and other scenarios in the financial industry such as multi-source data joint risk control in the insurance industry with sMPC. In the future, applications will exist for corporate finance, marketing, medical applications, and even artificial intelligence.”

ArpaChain achieves this dynamic balance using an off-chain, layer two structure — making ARPA compatible with any public blockchain.

Xu said,

“The ARPA secure computing network can be used as a second layer to provide privacy computing capabilities for any public blockchain, enabling developers to build efficient, secure computing networks on ARPA computing networks, while also protecting the data privacy of business applications. Enterprise and personal data can be safely analyzed or utilized on ARPA computing networks without worrying about exposing data to any third party.”

A confluence of security, privacy, and better UX — a compelling proposition.

Overall, sMPC effectively removes the requirement of trusted third parties for security [i.e., custody], the cold/hardware storage solutions preferred by exchanges, and affords a better UX by removing significant points of friction altogether like key management.

What’s the cherry on top? Better privacy.

For enterprises, mainstream users, and the broader trajectory of crypto adoption alike, that’s a potent recipe for success.

Continue Reading