DAPPCON 2018: Connecting Ecosystems Through Distributed Private Keys - Balazs Deme (Herdius)

Transcript

hi my name is Balaji founder of radius and today I'm gonna be talking about what I heard you says and what really you know connecting ecosystems and the private key level means and what we do as far as this really key generation goes and you know how we tackle and solve interoperability I actually wanted to do a live demo for you but you know afterwards or if you have questions we're happy to let you play around the decode if you want so let's get right into it okay this will not work okay so what is really what would be perfect question interoperability perfect across

change rapidly would mean that regardless of what token you hold in your wallet or which chain or ecosystem you're a part of you can still seamlessly access other kind of applications and all the different chains the problem that we currently have is pretty much Bitcoin is still somewhat dominant but Bitcoin users have a barrier when they want to use gnosis or they want to use other kind of applications on the etherium so what we're trying to solve pretty much is that if you have Bitcoin in your wallet let's say that's compatible with our network you can just do a simple swap inside our network and just send your token straight away to a smart contract let's say Gross's and use the application seamlessly so you don't have

to go through the different chains wait for the Bitcoin network or pay additional fees okay so what are really the current problems as far as interoperability Ghetto interoperability goes we are creating and there's more and more smart contract and decentralized application networks popping up and all it does is just place the community in different parts that really cannot cooperate so let's say I'm a big believer of chain X and I'd like you know my funds to be in that specific token there's a really big barrier if I were to use future applications that we run on different chains also the current applications you know can only function

within chained are created in so right now there's no way for an Theorem gap to be compatible with risk or so on and to be cross-functionality not to mention you know the tokens and if this is goes back to the you wax problem that we have currently if I were to bet tomorrow on a World Cup game and I'm a regular user on the street imagine giving the user the value proposition go to coinbase deposit money to kyc get the toke and then you know open an ether wallet and then do all the swaps it's nonsense and that's that has to be solved what what's what's the problem with the

current or future interoperability protocols a lot of them require communication channels or bridges to be set up separately which each individual chain which would not be that big of an issue if that it wouldn't be up to the main chains to adopt your bridge or communication channel so right now the most interpretability protocols if they were to I don't know implement or do a bridge between ethereum and Bitcoin actually the Bitcoin main chain has to somehow recognize or adopt the information coming from that bridge through in order to solve interoperability and this is where we come in that we connect block chains on

the private key level so when I looked at and you might have heard my talk on Dex's when I looked at Dex's and what's going on in space I saw everyone is building a decentralized exchange on aetherium smart contracts which is cool there's nothing wrong with it it's just in the future let's say in two years time when there's another token let's say a OS and you would want to implement it in your index then you pretty much have to rebuild your infrastructure because smart contracts are immutable but also very inflexible and the one one thing you have in common in all the different chains is public key cryptography and the use of private keys if you think about it your private keys are not your access to your bitcoins

it's not the cool thing or the cool thing that we promise it's more or less your signature to your identity and that's how you access you know data Michael place is as I've seen Ria's actions so what her to use does really is us as a network can generate the private key in a distributed way now what that means is when you deploy funds into her dias you still get a private key for yourself but the private key for the actual wallet is generated in a distributed way through different nodes and we use homomorphic this really key generation how morphic in the sense that you know if I I get to have a wallet address or private key that's generated

the different nodes that control parts of my private key do not act have access to the private key itself so you will see an example in the next slide what I mean pretty much what we use as far as TECO's is we use the bit 33 proposal for Bitcoin which is pretty much here Oracle deterministic wallets essentially we store the different key pieces on the actual block all of it is encrypted and we mobilize the whole structure what's what's different and I guess cool about our approaches we preserve the native key format of whatever chain we're going

back to you now what that really means is imagine you have this side chain where you have all these transactions going to user a always traceable user B and when we would have to go back to the main chain so let's say we do a spot for it there in Bitcoin and we were to go back to the main chains that main chain usually as I mentioned earlier would have to digest and information in our case you know from the perspective of the Bitcoin network let's say there's Hurley's user a and B and they do a swap so we exchange ether among our wallets I just gained the right to your private key reassembly process so if you send someone five bitcoins in the network and that someone sends it to a hundred

different people in the network nothing actually moves on the perspective of the Bitcoin main chain when one of those people move it out of the network that's when my original private key is reassembled so here's kind of hacks together slide or visualization of how this would work and actually let me scroll down a bit is that Alice and Bob you know deposit money into their her dues wallet that's when the distributed keypad generation kicks in so the actual private key for the wallet itself is generated in the distributed way and the private key that they get a control of so the hardiest private key only controls this key we assembly

process so no neither the users nor the different nodes in the network have access to the underlying private key and you can see there's different nodes that they have and then if we do a swap in the network nothing actually moves on the main chain as an asset you only just gain the right for this reassembly process and whenever there is a transaction leaving our network that's when the other is parties private key is reassembled what we try to do and let's you know how it works is all those different nodes who you see control the different key parts cannot cooperate so what that means is we have a new tree added to the Block inside our network

and that goes for outgoing transactions so whenever there is an internal transaction there's no private key we assembled none of that happens only when we go out of the network this outgoing transaction let's get scanned by the different nodes who all parts of the key and when they see there's a match and they are called upon to do the key reassembly that's when they submit or collectively sign-off homomorphic Leon this transaction packet basically balázs is sending to someone else bitcoins back to the Bitcoin main chain and from when the Bitcoin main chain gets this information it's in the native format of what they want so it's recognized by them as a value

action and there's no need for bridges or communication channels so what is really the value or what what are we doing here for users first of all is wheeled out that no matter which asset you store in your on your single wallet you can use any application seamlessly so let's say I have a theory I'm and I want to use an application on I don't know whatever chain you can do this inside our chain straight from your wallet and you can send your phone straight away to that application smart contract and use it seamlessly currently let's say the example of litecoin you would have to move it through the litecoin network do this whap come back

and then send the money away it incurs transaction fees and a lot of Confirmation times what we do for developers we actually do not need you know developers to to build on top of our network instead what we what we say is we don't care which chain you're running your application on all you have to do is open an address on our or exchange or our network hook it up to your smart contract or whatever basis your application is running on and then you instantly get access to our user base so that they can funds so that they can send funds there and just use the app seamlessly and this is what I talked previously on Dex is and centralized

exchanges on top of this wallet architecture we built this decentralized exchange and once again since we do everything on the private key level that would mean that it's a decentralized exchange which is blockchain and asset agnostic so we do not cherry-pick or whitelist which asset is traded on it we also don't really care you know which change that asset is on because all we have to know is kind of what kind of private key we need to generate and what are the coordinates for the elliptic curve and you know that's the value proposition that we build as global liquidity pool okay so where are we now we can pretty

much generate private keys for Bitcoin imperium so we have a really basic blockchain going on where Alice and Bob do this whap and then funds are moved in the respective chain back so this is pretty much already a functioning bridge if you want to call it so the next step will be to open source it as soon as possible making sure holes are are plugged in and that you know allowing straight away Bitcoin users to use the DAP ecosystem that's already existing criterium and then you know the text and the liquidity pool will come by the end of the year as well as you know all the different chains or platforms [Music]

yes that's pretty much it you can you can find out more or you can email me or you can talk to me after you know if you're a dev or if your user we're happy to give you access and to play around with what we have and you know just keep in touch and we plan to open source it as soon as possible thank you [Applause] [Music] [Applause]