DCRM Technology
At present, whether it is the (blockchain 1.0) bitcoin or the (blockchain 2.0) Ethereum, or thousands of other chains for competition, each chain is like a local network, which cannot be connected to each other. This greatly limits the application of blockchain. Thus, a real Internet of value era can not be formed. For cross-chain issues, the current mainstream cross-chain technologies include: public notary mechanism, hash lock, sidechain/relay technology, and the latest distributed signature technology. For more detailed info, please see: Crosschain technology.
The distributed signature technology implemented by the FUSION project allows users to lock-in their digital assets across the same blockchain platform, or lock-out to the designated account at any time. The technology supports all digital assets controlled by encrypted algorithms like Bitcoin, This includes more than 90% of mainstream encrypted digital assets: BTC, ETH, USDT and ERC-20 Token. This technology, which was first developed and applied, will be one of the important milestones in the history of blockchain development.
Bitcoin supports private key signature and multi-signature technology. Distributed signature is based on the core blockchain encryption technologies. It uses distributed key generation, secret sharing, threshold signature, commitment scheme, Paillier encryption and zero-knowledge proof. (cryptography algorithms).
Privatekey Signature
Invented in the 1970s, public key cryptography was the mathematical basis for computer and information security. It is also the cornerstone of Bitcoin. Bitcoin ownership is established through public and private keys, addresses, and signatures. The public and private keys are not actually stored on the network, but are generated by the user and stored in a wallet file. The keys stored in the user’s wallet are completely independent of the bitcoin network and can be generated and managed by the user’s wallet software without having to connect to the blockchain network. Public key cryptography implements many of Bitcoin’s features, including decentralized trust, ownership authentication, and security models based on cryptographic proofs.
Each bitcoin transaction requires a valid signature to be stored in the blockchain. Only the corresponding private key can generate a valid digital signature, so a Bitcoin private key copy has Bitcoin control right. The keys appear in pairs and consist of a private key and a public key. The public key is like the bank’s account, and the private key is like the account’s password. In the Bitcoin system, the public key is used to receive bitcoin, and the private key is used to make the transaction signature during the bitcoin transaction. When paying Bitcoin, the current owner of Bitcoin needs to submit its public key and signature in the transaction. After receiving the transaction, everyone in the Bitcoin network can verify and confirm with the submitted public key and signature and whether the transaction is valid. That is to confirm that the payer has ownership of the bitcoin being traded at that time.
Multi-Signature
In February 2014, the MT.Gox exchange lost nearly 850,000 bitcoins during a hacker theft, accounting for about 7% of the total amount of bitcoin, estimated at about $473 million at that time’s exchange rate. Frequent security issues, such as theft of exchanges have prompted the Bitcoin multi-signature technology development rapidly, which is a milestone in the history of Bitcoin development. To put it simply, bitcoin multi-signature makes it necessary to use multiple private keys for signature verification before it is accepted by the Bitcoin network. This improves the security of Bitcoin, and hackers need to obtain a sufficient number of private keys to Transfer bitcoin to their own addresses.
Generally speaking, a bitcoin address corresponds to a private key. To use the bitcoin in this address requires the owner of the private key to sign the transaction. The multi-signature technique is that multiple private key signatures are required to transact Bitcoin. For example, an address has three private keys, and at least two of the private keys must participate in the signature signing in order to make it be successful. Only one private key participation in the signature signing is insufficient. And this 2/3 scheme can be extended to any m/n, such as 3/3, 3/5, 6/11, etc. The maximum n in bitcoin is 15, and the most used one is the 2/3 signature scheme.
Distributed Signature
The biggest feature of the blockchain is that nodes without centralization can control the entire network, while current mainstream digital currency exchanges are controlled by one or more co-stakeholders. When a user who holds a BTC and wants to convert it to ETH, it can only be implemented through a centralized transaction. Most of the fast-developing DEX decentralized exchanges are based on Ethereum and can only be redeemed for ERC20 tokens.
Distributed signature technology solves the problem of cross-chain decentralized trust from the lowest-level cryptographic algorithm. The digital assets after Lock-in are managed by distributed key algorithm by thousands of decentralized nodes distributed by blockchain networks around the world. Distributed private keys are generated by DKG technology, and malicious attacks are prevented by an algorithm, called commitment. The ciphertext processing is realized by homomorphic encryption. Then the privacy verification is realized by zero-knowledge proof, and finally comes the implemented distributed signature algorithm. These encryption algorithms are proven to be secure, just as secure as bitcoin encryption algorithms. The asset book after Lock-in is publicly recorded on the FUSION blockchain and cannot be tampered with. Users can trust open source code and encrypted algorithms with confidence.
Application scenario
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Decentralized CrossChain Transactions: Distributed signature technology solves cross-chain problems and can achieve transparent, fair and secure decentralized transactions, and not only ERC20 tokens, as long as the signature algorithm and Bitcoin are consistent. Direct trading, which means that most currencies can be traded directly.
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Mainnet Swap: Take the recent EOS swapping as an example, due to the lack of interoperability between EOS and Ethereum, many users lost their private keys in the complex mapping process and caused asset loss. Distributed signature technology makes FUSION a huge advantage. For users, the mapping process is extremely simple, just as easy to get cash from the ATM. The user only needs to perform one-click operation on the wallet supporting FUSION: Lock-in after the lock-in to obtain the original mainnet original token.
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Assets Tokenization: The distributed signature technology is based on the public key encrypted algorithm, which makes it possible to have all digital assets locked-in by the private key to the FUSION and tokenization. Not only digital currency, but also traditional financial assets, as well as traditional assets such as real estate, automobiles, hotels, etc. The circulation of assets and tokens has enabled many new business models to be realized.
Future prospects
The rise of the blockchain has made people see the prospect of value Internet. However, the existing blockchain network still has many bottlenecks in terms of interoperability and security, which makes it difficult to realize the value transfer of existing encrypted digital assets.
FUSION’s distributed signature technology allows different digital currencies to be locked-in to FUSION blockchain in a more innovative way, enabling these assets to achieve multi-currency smart contracts on the same chain. This greatly improves Value Internet interoperability and it becomes the infrastructure of crypto finance. It is like a “highway” on the value of the Internet. It can easily realize the value transfer between various digital assets and multi-currency smart contracts for encrypted financial services, thus promoting the development of FUSION encrypted financial platform and building a brand new ecosystem.
@FUSION Foundation