WANCHAIN | The power of the Locked Account Generation Scheme

bait002 (72)in #wanchain • 6 years ago (edited)

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Since the dawn of our species, we have always been faced with various issues, part of which is the issue of insecurity and distrust. And after scaling through all the pivots and turning points in history, we still haven’t found the basis for trust and any tangible reasons not to be afraid of the unknown. So we keep developing all manner of systems to have some measure of guarantee that we are safe and mechanisms to shield us when we must trust someone else.

The challenge stated above is not just peculiar to the offline systems but we can clearly see the demand for trust and security in the digital sphere most especially, the cryptocurrency space. Thousands of dollars go across the internet within the smallest time frame as transactions are being initiated by users from all over the world. We have seen cases where some projects have been designed for the sole purpose of stealing money from investors’ pockets. This is nothing to boast about for all those who believe in the idea that "crypto is the future". Now, I believe is the time to understand the technicalities behind how blockchains work, in order to profer possible solutions to this issue. It is in response to this that a project like Wanchain was initiated. Wanchain seeks to solve the issue of transparency that we are faced with continually while engaging with centralized exchanges with a model that is 100% native to the blockchain technology.

In order to achieve this, Wanchain uses a Locked Account Generation Scheme to create a system where decisions (transactions) will be initiated among a given number of individuals in such a way that none of them will have an oversight. But instead, share equal access and authority to a decentralized account system.

Unlike the Largrange Interpolation Polynomial-Based Threshold Sharing Scheme used for re-constructing secrets held among a certain number of individuals_{_{learn more}}, the LAGS (Locked Account Generation Scheme) generates decentralized but Locked Account using verification nodes with the aid of threshold key sharing protocol. Here each verification node holds a key share of the private key of such Locked Accounts. The purpose of this is to make sure that there is a distribution of the private key of all accounts across the entire network in order to foster the full application of the decentralized model.

This is a secret sharing scheme_₁ that allows information to be kept safe in the hands of trusted and authorized few individuals in such a way that requires the presence and consent of all these authorized parties to re-construct the secret. In other words, a share of this secret is distributed among n number of individuals in such a way that it takes t to reconstruct such secrets although, n isn’t equal to t. But if t = n, then it would take the consent or presence of all to re-construct the secret. To know more about these kindly refer to the links below follow this link.

The goal of Wanchain is to eradicate the reliance on centralized exchanges so we can have a truly decentralized ecosystem across all blockchains in such a way that the initial barriers to interaction among these independent blockchain projects are totally eradicated.

before Wanchain blockchains used to live on islands...

One of the mechanisms put in place to guarantee a seamless integration of independent blockchain projects is the Locked Account Generation Scheme_₂. And this secret sharing scheme on Wanchain is to ensure that users’ assets are locked on their original blockchain or initial blockchain. This is in the case of cross-chain transactions (remember, Wanchain is making the room for a possibility to transfer digital assets across various blockchains without the aid of centralized exchanges?). In order to unlock these assets, some criteria must be met. Under the Langrangian scheme_₃, the secret (key to the Locked Account) would require the presence of an elect few (t) to unlock such secrets or assets as we have in this case; some others make use of the HTL (Hash TimeLock) Contract Scheme while others make use of a Trusted Third-Party Escrow Account Scheme. All these schemes and methods of distribution private data (secret and assets) have their own limitations which necessitated the need for an improved and superior version. However, the Wanchain Locked Account Generation Scheme has the following advantages;

Elimination of Centralized Third-Parties

With this scheme, accounts are generated through a multi-party computation system where no participation of any third-party is needed.

The only necessary thing is to have information (interaction) and validation on secure channels. This model is more flexible and cost-effective compared to others like the Third-Party Escrow Account Scheme _₄.

Security and Stability

With this model, it would take the consent of certain number of authorized individuals (also known as Validators) to access the Locked Account.

This process is based on the Shamir’s Secret Sharing Scheme _₅ that also uses the Langrange Interpolation Scheme. Here, each Validator will be given share of the access key but not the full share. This is to ensure that no single individual has the full access to the key for the Locked Account. The basis for this is the Two-man rule_₆ that states that all actions and access will take the presence of two authorized individuals at all times. Take for example;

if the keys to a nation’s treasury were held by a single person, the chances of funds getting into the wrong hands is high. But let’s say to keep this safe; the keys were distributed among the top 5 officials of the country and each one having equal access as the other four. It would take the presence of all 5 to unlock the treasury and with this; we can have more confidence in the safety of funds.

This is what the whole idea of having a certain number of validators to hold one piece of the key share to the Locked Account on the Wanchain network. With this, accounts will be created and to initiate transactions on them, it would take the validation of at least t of t (the total number of key holders) out of n number of people. With this, there’s a measure of guarantee that the system is secure and will definitely be stable. To avoid key share exposure, the keys are regularly updated. And if peradventure, there is an exposure, it wouldn’t be on all the keys at the same time. However, frequently updated keys ensure that this risk is reduced to the barest minimum.

Easy Integration and Efficient Data Storage

All transactions are initiated and finalized on the original blockchain. And apart from this, no new transaction can be initiated on the Locked Account. In theory, any blockchain can be integrated with the Wanchain network in a cost-effective manner. Moreover, in comparison with the multi-signature account scheme which depends on the idea of smart contracts to attain a multiparty management feat, the Locked Account Generation Scheme seeks to achieve multi-party management by the principles of cryptography. In this case, the final transaction has a single signature. Hence, we can say that data storage and usage will be at an optimal state with this model.

That should be all for now guys! I know this is a technical subject but trust me it’s easy. As long as you look at it from the perspective clearest to you; knowing that the sole aim of Wanchain is to achieve the purest form of decentralization even in terms of handling data and confirming transactions once they are initiated on their original blockchain. This is brilliant my friends, I would recommend that you visit the links provided within and embedded below the post to have a better understanding of what these concepts truly mean. This is Bait and I am bringing you words from the Offline Minnow School.