Cryptocurrency

Library code released by Binance would exceed security of the protocol’s multi-signature | Breaking News

Key facts:

It is the implementation of a solution for the distributed generation of keys unique.For the CEO of Binance the new scheme, firms will transform the services portfolio and custody.The house of change of cryptocurrencies Binance released the code of their own implementation of the Schema Signature of threshold or Threshold Signature Scheme (TSS), which according to its CEO, Changpeng Zhao, will transform the services of purses and custody in the ecosystem.The executive considers that the use of this scheme will exceed even the levels of security of the protocol’s multi-signature, a method widely used in industry for the transfer of funds to and from addresses are pooled.Binance pointed out that the scheme TSS will allow providers and custodians of purses avoid single points of failures in private keys with the key management distributed. The protocol is compatible and reusable for networks that work with the Algorithm of Elliptic Curve Digital Signature (ECDSA) and that includes Binance Chain, Bitcoin and Ethereum.

Multi-signature vs. Signature Threshold

Unlike the protocol’s multi-signature, in which to generate a key for each participant and a combination of these must sign the transaction to be valid, in the Scheme of Signature of Threshold participants receive a part of the unique key and a certain default amount of these parts must be used in the generation of the key and later signed the transaction.Vault multi-firm: two keys, two locks. The vault is more “heavy” and looks different. Source: ZenGo.For example, to perform a transaction multi-signature configuration 2-of-3, requires two people to sign your keys with the transaction, leaving a record of it in the blockchain. In contrast, to make a transaction, and TSS with the same settings 2-of-3, you need two people to pool together their secrets in order to generate a single key that can then be used to sign the transaction in the blockchain only write a signature, as if it were a transaction normal.Vault TSS: two keys, a lock. The vault looks like a vault classic, of a single key. Source: ZenGo.According to the security firm of criptoactivos ZenGo, in the Scheme of the Signature Threshold, the distinct keys are never found, the signature is indistinguishable from a regular signature, therefore universal, and the associated costs and their privacy are the same as those of a regular wrench (smaller than that of a multi-signature). However, they note that due to the interactive nature of the processes of conformation of keys “requires that all parties be present during the action (unlike the multi-signature in which each party can sign asynchronously)”.The birth of the Schema Signature of Threshold dates back to 1994, since the publication of the paper “How to share a function securely”, by Alejandro De Santis, Yvo Desmedt, Yair Frankel, and Moti Yung, and, until now, the scheme had only been used by the military sector and the government, according to Wikipedia.

Audit and reactions

To validate the library before you release it, Binance audited the code with the company Kudelski Security that was determined, according to the own house of change, that none of the problems found in the audit could be exploited to completely break down the security of the scheme, or to recover secret data.In the community, enthusiasts received the news with pleasure and pointed out that the development points to that in the future, the TSS will be more simple to implement. At least so considers the bitcoiner Udi Wertheimer, who from his Twitter account indicated that “TSS is great, the new library of open source @binance is a contribution welcome, it can be used with Bitcoin today.”The user believes that the arrival of the proposed Schnorr and Taproot, as a future fork soft of Bitcoin, it will cause the TSS to be more simple.For the developer, Steven Goldfeder, who participated in its implementation, the protocol is already used in several applications. In the tweet to the cita, the host of the podcast Epicenter displays companies that are already working with the Scheme of the Signature Threshold on ECDSA, and it indicates that people are already starting to see the power and potential of this technology.

Although Binance ensures that your proposal would exceed the security protocol’s multi-signature adoption will be directly related to the results shown in the management of portfolios, custody services and other applications related to the transfer and receipt of funds in cryptocurrencies.