This is a translation of the white paper from Velas. (Source https://www.velas.com/)
Summary
Today, centralized solutions are used everywhere in all areas of our lives. But recently society has begun to realize the shortcomings of centralized systems and how larger corporations conduct their business. refore, we are seeing tremendous growth in decentralized solutions that have emerged thanks to blockchain technologies. Unfortunately, decentralized solutions can hardly be called convenient and user-friendly, which is crucial to achieve mass distribution. Velas wants to change that.
This article contains a description of the Velas network ecosystem. Our team has developed a set of technologies designed to form the foundation of the decentralized Internet: Web 3.0. We take the most useful and applicable technological innovations and create decentralized products based on them. We design our products to be easy to use, accessible, and just as understandable as centralized products, but without exploiting user data or creating a single centralized point of authority or failure.
With such a mix, we hope to show the general public all the benefits of using decentralized solutions with Velas.
Introduction
Society
world has fundamentally changed in recent challenging years. Unprecedented global events have raised myriad questions about what to expect next and how to move forward. COVID-19 contributed to the increased speed, growth, and complexity of our society’s evolution. Businesses, governments, and private households were forced to adopt digital technologies to reduce human contact. Trends like home workspaces, social media, e-commerce, and online meetings have significantly increased the demand for digital solutions, and that trend will not end once the pandemic is over.
world has entered the digital age with the emergence of services and applications that take advantage of the way we communicate and transfer information to the next level. Accelerated and forced digital transformation has triggered the need for a constant search for innovation.
darker side of rapid digitization has seen the rise of giants and monopolies, spreading centralization, censorship, and control in and through the digital space and social media. If you are using popular social media platforms, then your confidential information no longer belongs to you. A large number of companies manage all your personal data for their own purposes. And these problems are the lasting legacy of Web 2.0.
Web 3.0
People’s desire to regain freedom, privacy and control of their data has led to the emergence of the concept of Web 3.0: the decentralization of the Internet. It can come true with the advancement of blockchain technology, which has transformed entire industries in recent years.
Web 3.0 will completely erase the boundaries between online and offline, will be completely authentic, and will be saturated with decentralized applications spread across clusters of specific domains. orderly chaos created by the small activities of billions of people is likely to cause people, businesses, and technologies to function differently. Work better.
Blockchain
Blockchain has the potential to revolutionize economic and social interactions and ultimately become the backbone of a digital society.
Blockchain is a distributed ledger technology that is designed to protect against unauthorized access and ensures that records are immutable (nothing can be erased once added) and traceable without the need for centralized administration.
Such an architecture allows different organizations to use a common database, which does not require human efforts to verify the integrity of the data and is protected against unauthorized interference.
Blockchain technology has proven its ability to handle data in a decentralized and secure way, collecting separate chunks into a common whole. Where the Internet transmits information, blockchain is capable of efficiently transmitting value, be it property rights, goods or services. Efficiency implies both the speed of the exchange of information on the blockchain and guaranteeing its reliability, immutability, as well as the construction of a safe and transparent way of accessing this data only for those who have the right to access it.
This is especially important when the costs of adding data sources and the associated liabilities outweigh the benefits. With the explosive growth in the use of customer data in emerging technologies, such as AI and IoT, visibility is becoming extremely relevant to customers. If the blockchain itself has reached a certain threshold of maturity, then the UX / UI technologies that support it are in their infancy. Soon, they will start a conflict very similar to the standards conflicts that have led to today’s Internet standards. According to Gartner, by 2024, 30% of customers’ sensitive personal data will be protected by licenses based on blockchain technology.
Candles
Inspired by the values of Web 3.0 and Blockchain technology, we created Velas, a project that combines Blockchain and innovative AI technologies to create a transparent, community-driven and decentralized ecosystem of products and services.
Realizing societal needs and aiming to become the industry standard, Velas is designed to be a suitable blockchain platform for thousands of applications and services to build on. refore, we designed it to be one of the safest and fastest platforms in the industry.
Our mission is to create and integrate world-changing technology products and services to improve the lives of people around the world and make the Internet free again, as it was before. We believe that disruptive technologies and innovations will help us build an autonomous and decentralized future powered by the collective intelligence of the community.
Each of the Velas services is primarily focused on our users. We are trying to combine the best qualities of centralized and decentralized solutions. It involves researching cutting-edge cryptography, developing consensus protocols, and designing intuitive user interfaces that enable developers, businesses, and individuals around the world to create and join easily accessible, transparent, and community-governed ecosystems for Web 3.0.
To address the main blockchain trilemma, our technologies are being developed with an emphasis on scalability, security, and decentralization.
Currently, the performance of Velas Blockchain is much higher than what can be seen on most existing blockchain platforms.
Comparison with others
To solve the scalability problem, we have created our solution based on Solana and supplemented it with additional features and innovations.
Additionally, Velas is a community-driven project. At any time, our community members can vote for the next product that our team will prioritize. This feature and the fact that anyone can join our network as a validator or delegator, makes both Velas and Velas Blockchain decentralized by nature.
Technology
Blockchain candles
Before creating the project idea, the Velas team investigated a wide variety of different technologies. We conclude that the project must solve fundamental problems of both users and blockchain technology in general, and with the maximum achievement of the theoretical performance limit, without compromising security and decentralization. That is why we are applying all possible optimizations and innovations at this stage.
We have chosen Solana as the basis for Velas Blockchain and have complemented it with several innovations to ensure a more secure and user-friendly interaction with our Platform.
In addition, we would like to describe the set of technologies that come together to make Velas Blockchain one of the most scalable, secure, decentralized and user-friendly blockchain platforms on the market.
Candles Account
Velas provides its own passwordless authentication system, allowing users to securely access a variety of services without a password using only their Velas Account, while introducing unique authorization fees to minimize risk.
AIDPoS
Currently, there is a dilemma in the industry: how to make blockchain secure and scalable. refore, we are working to add an AI module as an additional layer to prevent known attacks by slowing down the blockchain when a system attack is in progress and speeding up the system when there is no malicious behavior on the network.
To achieve the optimal balance of speed, performance and security, Velas will implement a novel consensus system known as AIDPoS, which will use machine learning to automatically adapt the Velas blockchain to changing circumstances, ensuring maximum performance and resilience at all times. .
Candles Vault
This is a new technology that allows us to speed up and make the transactions of other cryptocurrency systems cheaper by taking advantage of the speed and security of our blockchain. In this way, we can achieve true security for a decentralized custodian. As a bonus, we can use different authentication solutions, such as Google or Apple Authentication and our own Velas account, to make the experience of using cryptocurrencies as user-friendly as with all the digital products we use every day. And to increase the number of use cases, our technology can be used to store any data you want in a distributed manner, fully ensuring your privacy. And the list of possible applications goes on …
Based in Solana
It is very important to have an almost instantaneous confirmation for electronic payments. Solana has that.
As everyone knows, blockchain technology is very suitable for making electronic payments, without the need for a centralized third party to confirm the transfer of funds. When a transaction is confirmed, nodes (network participants) add information about it to the blockchain.
To reach a consensus and legitimize a transaction, the blockchain nodes must exchange information about the state of the network or correct, say, synchronize. Synchronizing nodes on the network is one of the fundamental problems of blockchain technology because nodes are located all over the world and have different data throughput capabilities. duration of the synchronization proportionally affects the ability of the blockchain to pass more transactions accepted per second (TPS). For example, the bandwidth of the Bitcoin network is 7 TPS, EOS has around 4000 TPS, but the most popular centralized payment system, Visa, processes around 1700 TPS and dwarfs (with that capacity) most of the decentralized networks.
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During our Solana tests for a full network load, the bandwidth reached ~ 60,000 TPS, and this is not the limit; theoretically it can reach 710,000 TPS on the standard gigabyte network.
Currently achievable performance metrics:
50,000+ transactions per second
400ms block times
$ 0.00001 fee per transaction
How is this possible?
Velas team understands all the perspectives of Solana’s approach and now it is your turn to look at these perspectives.
We noticed that Solana is the best string of a fragment with great optimizations within it. traditional concept of blockchain fragmentation is technically cumbersome and has additional difficulties.
Solana blockchain can reach a speed of 60,000 transactions per second by utilizing the GPU, parallelization of transaction processing, and other innovations such as PoH and Gulf Stream. presence of such technologies in the frame significantly raises the bar for competitors and we consider this frame to be the best solution on the market. refore, we chose to use these developments instead of developing competitive solutions. Which, in turn, allowed us to fully focus on developing the rest of our ecosystem.
Solana team is comprised of pioneering technologists from Qualcomm, Intel, Netscape, and Google, and has focused on developing the technology necessary for Solana to operate to revolutionary performance standards.
main technologies that make Solana so productive and efficient compared to other blockchains are:
Proof of History (POH) : a clock before consensus;
Tower BFT : a PoH-optimized version of PBFT;
Turbine : a block propagation protocol;
Gulf Stream – Transaction forwarding protocol without Mempool;
Sealevel – parallel smart contract runtime;
Pipeline – a transaction processing unit for validation optimization
Cloudbreak : database accounts scale horizontally
Filing cabinets : storage of books accounting distributed
But, the way Solana optimizes the blockchain affects the way developers build decentralized applications on it. y need to think about how the blockchain is structured and developed directly for the Solana blockchain, given all the imposed limitations associated with parallel processing.
Ethereum Virtual Machine (EVM) support #
Solana’s predecessor, Ethereum, developed the concept of developer-friendly smart contracts that allows for the realization of all possible uses with more thought about the subject domain decentralization process and less focus on blockchain limitations.
This allowed many developers around the world to develop a large number of decentralized Ethereum applications in a short time, some of which even formed ERC standards that went mainstream. However, there is no exact reason available why we should replace this standard with another.
Despite this, developers faced the high cost of transactions and limited performance of the Ethereum network, prompting the creation of a more productive Ethereum 2.0.
Ethereum is by far the most widely used DeFi platform on the market, with the majority of dApps built into the network, so this EVM bridge will allow those applications to run faster and smoother with increased transaction capabilities per second (TPS) of Candles.
Our idea implies a different approach, which is being carried out by the Velas team. We took the most efficient blockchain and implemented the ability to write Ethereum smart contracts on it, that is, Ethereum VM.
This will open the doors to the DeFi market and decentralized Ethereum application developers, allowing them to expand their capabilities with the Velas ecosystem, the fast Velas blockchain, and low fees.
Candles Account
According to research from NordPass, the average user has between 70 and 80 passwords. re are many passwords to remember. It’s no wonder, then, that the security of digital users is a bottleneck and the main target of hackers. FBI’s Internet Crime Complaint Center estimated that the large number of password-related complaints they received in 2019 alone cost organizations $ 2.1 billion.
On the other hand, Internet commerce is growing rapidly and experts predict that it could reach $ 27 trillion by the end of 2027, where the convenience of the payment method plays an important role in outperforming the competition.
This is why next-generation authentication and payment solutions are becoming increasingly popular as a measure to improve user experience and security.
Having to create multiple accounts on multiple applications and platforms negatively impacts the attractiveness and desirability of a product for its user base. Having a Facebook account, for example, allows users to seamlessly log into other services with it, reducing friction. Payment services, however, ask for additional information, such as credit card linking, which is not available during a typical user session facilitated by Facebook or alternative social login solutions.
While a combination of centralized solutions, for example, Facebook for logging in and PayPal for payments could fix the problem. However, such a configuration has its user experience and its security drawbacks. Just to name a few: single points of failure, data collection, lack of ability to adapt to custom use cases, dependency on password email, etc.
While Facebook, Google, PayPal, and WeChat are the undisputed leaders in today’s markets, the blockchain industry is developing alternatives that focus on greater security, privacy, and durability. se alternatives begin to form decentralized ecosystems that contribute to the transformation of the way in which people would manage their digital identities and carry out transactions in the future. However, when it comes to one-click authentication and payments, the current user experience of decentralized applications has a lot of room for improvement due to the complexities of blockchain technologies.
Let’s take a look at Metamask, one of the best wallet apps in the blockchain industry. It supports integration with any website and allows you to authenticate and execute payments through the Metamask Browser Extension and recently a mobile application. However, to make the payment in ERC20 tokens, you have to sign and transmit multiple transactions (Approve, Transfer from) that contain a lot of technical information that average users can barely verify if it matches their intention. It’s complicated.
In addition to confusing the transaction signing process, the other non-trivial task is to properly manage the initial phrases of the wallet.
se two aspects alone significantly worsen the user experience which sometimes results in loss of funds and it is not surprising that users prefer services that make authentication and payment processing more convenient, even at the expense of their own. Privacy. If blockchain payments want to expand their audiences, they have to get close to the level of Google and Apple in terms of user experience. This is where Velas Account must carry out its mission.
With Velas Account authentication, interaction with cryptocurrencies is facilitated at the convenience level of centralized technology without sacrificing user privacy and security.
No passwords, no break-ins. Velas Account uses biometric authentication on the user’s device to confirm login requests and transactions.
Seed phrases are available for advanced users, but newcomers can start their decentralized journey with their Account backed by a social login without the need to manage private keys directly.
360 ° overview of all connected applications and active sessions on all devices with the ability to terminate sessions and revoke permissions from any application at any time.
With Velas Account, the transaction confirmation screen is free of technical details, providing only the necessary and verifiable information to the user.
Sending an ERC-20 token to a dApp does not require multiple transactions.
Keep track of every transaction made by Velas Account or whitelist known applications to execute specific background application transactions.
As a result of these improvements, the user will not feel any discomfort from the difficulties of using blockchain technologies. interface will make it easy to migrate from centralized to decentralized solutions, leaving all the technical details under the hood and a convenient user experience.
AIDPOS
Velas team conducted fundamental research to better understand how artificial intelligence could be implemented in the blockchain architecture to optimize the performance of the entire network. Based on the research carried out, we are designing and developing the AIDPoS consensus algorithm.
Motivation
fundamental principle is to use AI to adapt the chain of blocks to the current circumstances in the network, preserving the level of Transaction by Seconds (transactions processed and confirmed) and resilience in the optimal ranges.
In our opinion, blockchain should always work in instant transaction confirmation cara, just like centralized payment solutions like Visa and Mastercard do. Instant transaction confirmation cara means that any transaction will be processed and validated in a second.
Maintaining both performance and security at a high level is achieved by incorporating trained carals at each full node, producing the optimal values of key parameters for the blockchain, based on data collected from the blockchain. last epoch.
Candles Blockchain is a complex system that is deliberately configured for high performance. However, high performance means very limited time for nodes to synchronize, which can cause a large portion of nodes to go down due to network problems or attacks targeting the consensus mechanism. As a result, performance can be severely degraded or even forks can occur. To avoid this, we are designing the AIDPOS algorithm that proactively adjusts blockchain settings to balance performance and security, while also incentivizing decentralization and user engagement.
General approach
One of the promising areas of the integration of AI and blockchain technologies is the development and training of a recommendation algorithm based on machine learning technologies, which should provide a dynamic change in the parameters of the network and consensus smart contracts of epoch to epoch. Such an algorithm should ensure that the Velas blockchain network remains secure, resilient and productive for all its participants.
Velas proposes to use the state data of the global network and the state data of the local nodes of the previous epoch for the predictions.
recommendation algorithm will act as the objective “gatekeeper” of the network.
re are two main concepts that are important for proper network functionality: performance and resilience. Throughput can be measured using two simple metrics: throughput, which is measured by transactions per second, and transaction commit time. Resilience is the ability of the blockchain to resist any type of attack and to function properly during these events. Two main characteristics that ensure resilience is maintained are security (the amount of resources an attacker needs to spend to break the blockchain) and decentralization, which can be described as the absence of a single point of failure.
Recommendation caral. How does it work
recommendation module will be based on machine learning algorithms and will execute the following tasks: anomaly detection (anomaly behavior of the nodes) and recommendation of the optimal values of the Velas blockchain parameters.
prediction / forecast algorithms will be based on a convolutional neural network. For anomaly detection, we consider the following approach to be the most suitable: distance-based, density-based recurrent neural networks. Much attention will be paid to the stability of the trained carals and their adaptation to the data in the process.
A detailed description of the caral
AI module is a trained multilayer neural network that accepts two sets of parameters as input: the static “α” parameters of the blockchain, which change, but cannot be influenced, and the dynamic “x” that the AI module can recommend. based on the current state of the blockchain and the specific parameters (y) that were identified in epoch N-1. In order for the network to accept the new parameters of the blockchain, it is necessary to carry out a vote in which the consensus participants will approve the new parameters determined by the AI module.
f (x, α) = y
x – blockchain parameters α – the current situation in blockchain y – optimized function (performance, security, etc.)
But here we face some challenges, x – never changed before on mainnet, α – small variations on mainnet (low load etc). To complete these tasks, we developed the Velas blockchain simulation caral with the following characteristics:
Simulation launch for a wide range of α;
Investigate how the blockchain reacts for α with different x’s;
Build a recommendation caral that proposes the best x with respect to α
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A module must have the ability to adjust the blockchain settings to the appropriate x.
Candles Vault
Motivation
Like all decentralization enthusiasts, we admire cryptocurrencies that are bringing the world of decentralization closer to a full-blown level of normalization. Especially Bitcoin and Ethereum for their monumental contribution to the ideas and concept of decentralized money and smart contracts. But as ordinary users, we see that these systems suffer from slow and expensive transactions, compared to other cryptocurrency solutions. However, we still use these systems for their security, proven by both time and cryptography.
But, naturally, we want those transactions to be cheaper and faster, without losing the security that these systems provide. re are many solutions on the market that offer to make your transactions almost instantaneous and free if you transfer your coins to their custody. y do this by simply keeping a centralized ledger of the balances of all their users, so a transfer to another user is just a small change in a “spreadsheet”, which is very fast and cheap by definition. But there are major problems with these services.
Let’s analyze the most common drawbacks of resorting to this type of solution:
Transferred control of your assets: service retains your private keys, which means that if there are some problems accessing the service, such as an employee breach or an external security breach, your private keys are at significant risk of being compromised.
Hacker and Hacker Attacks – re are almost no exchanges that have not been targeted or theft of user funds in one way or another. If you do not have your keys personally, you run the risk of someone else gaining access to your assets through a wide variety of means.
Changes to the terms of service: At any time, the service may impose restrictions or limits on the services, including the deposit / withdrawal of funds from your accounts. Again, if you don’t personally own your keys, you run a higher risk of losing access to them.
Account blocking and freezing: At the request of regulatory bodies or police / security services, the escrow service may be required to limit users’ access to the platform and thus its stored cryptography.
No Anonymity: According to FATF rules, the service must collect user data and provide information to regulators upon request. KYC has its advantages, but for many, it is a key factor to avoid.
Most of these drawbacks are fundamentally inherited from the centralized nature of such services. To be more precise, the problem lies in the way they guarantee your safety. y build it on the basis of their reputation and licenses from government regulatory bodies. So, in other words, your security stems from your compliance with the regulations of centralized authorities. But this is in total contradiction with the central ideas of decentralization. True safety can only be demonstrated through time and mathematics.
Solution
As we described earlier, our main goal was to create the fastest and most secure blockchain single layer system in the world. At the same time, the basic idea of the escrow service is that a fast and cheap accounting solution can speed up and make any other cryptocurrency system cheaper. As we have discussed, the main issue is security. So what if we can use our blockchain (decentralized ledger technology) as a ledger for custody?
If we do this, it should only be done in a decentralized way. But from the dawn of the cryptocurrency era until a year ago there were no adequate crypto solutions to the problem of decentralized custody. However, the strong desire of the crypto community to find a solution gave enough motivation to mathematical teams around the world to seek new approaches to solve the problem at hand. So now let’s find out what the real problem was.
First, we must understand that there cannot be any type of custody, if the user still has the secret keys, which allow transferring the coins in custody. Actually, if some entity knows the secret key, then it is not true decentralized custody. So we have two implications:
1) At least one transaction from a user to custody must take place in the native Bitcoin system using a slow and expensive transaction.
2) No small group of validators, involved in obtaining custody, should be able to restore the secret key.
What other requirements are necessary for a decentralized custodian to function? From sifates 1) and 2) it follows that we need a special protocol to exist that allows validators in the custody system to create a secret key in a distributed manner, where no small group can restore this key. And yet the protocol should allow users to know the corresponding public key in order to send transactions to an address in the system.
This task was not the problem, as the protocols described existed in the crypto world for some time. So now we know that it is possible for validators to create a secret key and the corresponding private key in a truly decentralized way. And users can send their coins to the address that is owned by our custody. After that, fast and secure transfers are possible on our blockchain. But instead of changing balances in a “spreadsheet”, as we described for the case of centralized custody, it will be done through a smart contract deployed in the Velas chain.
So does it mean that we have achieved our goal? Fastest and cheapest transactions of all cryptocurrencies on the fastest chain! But you have probably noticed that there is still an unsolved question. While we can make quick transactions within our chain, and Bitcoins (or others) are in custody, the question of getting out of custody remains. And here we get into the problem that for a decade kept us all from creating a truly decentralized custodian.
To get out of custody, we need to perform a transaction from custodian to user. But we cannot achieve this simply by invoking the protocol to restore the custodian’s secret key. Because in this scenario, each validator will be able to sign a transaction that requires the coins to be transferred to their own address. And one of these transactions can enter the block that will be mined first on the Bitcoin network, instead of the one that should have been signed in the first place. So we can clearly see that we need a way to sign transactions in a distributed manner, without restoring the secret key itself. And to understand why this is such a big problem, we need to dig into the mathematical details of the underlying protocols.
We will start with basic definitions and gradually delve into the details of the necessary protocols. Later we will briefly describe the existing solutions, their problems and the motivation for the solution we have chosen.
Mathematical descriptions
Definitions and basic schemes
ℤ p denotes the set of all integers from 0 to p – 1 with addition and multiplication operations performed modulo p . ℤ p will be the set of scalars that will be multiplied by G , the base point of the elliptical curve used in the digital signature scheme of the cryptocurrency network considered. For example, p = 2256 – 2 32 – 2 9 – 2 8 – 2 7 – 2 6 – 2 4 – 1 for the case of secp256k1 that is used in ECDSA for the Bitcoin and Ethereum systems. But in Solana, a different number is used for the curve Ed25519 in EdDSA, and there are other examples as well.
So why do we need these scalars (multipliers)? answer is very simple: in every public key elliptic curve cryptography scheme, the secret key sk is just one unsurt of ℤ p . corresponding public key is always sk ∗ G , where, again, G is the base point of the curve. Now we can move on to the signature scheme itself.
To simplify the arguments, we will only consider the ECDSA used in Bitcoin, Ethereum, and others. In this signature scheme, when a user has a secret key sk , the corresponding public key pk , a message m to sign, encoded as an unsurt of ℤ p , the two signature and verification protocols are:
Protocol 1. Sign ( m , sk , pk )
Returns a random unsurt k ∈ ℤ p .
Calculate the point of the curve R = k * G , and its x coordinate r x (mod p) .
Calculate the signature sig = (m + sk ∗ r x ) ∗ k −1 (mod p) .
Post the pair (r x , sig) .
Protocol 2. Verify (r x , sig, pk, m)
Calculate the point on the curve V = (m ∗ G + r x ∗ pk) ∗ sig −1
Accept the signature if and only if the x coordinate of V coincides with r x modulo p .
Now we move on to the decentralized configuration. It will involve n parties (validators, servers, nodes) that can communicate with each other through secure channels, which means that only the intended recipients will understand the sent messages. As we have seen, the first task is to create a secret in a decentralized way.
Our goal is to allow any subset of t of them to sign a message and at the same time prevent subsets of t – 1 or fewer parts from getting information about the secret key. This problem is called t -of- n threshold digital signature . It should be clear that in such a scenario t should represent the supermajority of custodians, and that neither sk nor k can be stored in one place (be in possession of one entity).
Underlying MPC protocols
refore, important multiparty computation issues arise, when multiple parties sign the message (evaluate the above expression) without knowing sk or k . standard technique for solving this problem is called a secret exchange. We will explicitly derive the details on the following pages for readers to gain a deeper understanding of the main principles and common pitfalls in this fascinating but complicated topic.
However, first suppose for a second, that we already distribute the additive secret actions sk 1 , sk 2 ,…, sk t and k 1 , k 2 ,…, k t of a sk and k respectively such that sk 1 + sk 2 +… + sk t = sk and k 1 + k 2 +… + k t = k . Would you help us to sign the document through the aforementioned protocol? We can easily calculate R = R 1 + R 2 + ⋯ + R t , where R i = k i ∗ G for the signature phase, and pk = pk 1 + pk 2 + ⋯ + pk n , where pk i = sk i ∗ G for the verification phase, but how do we proceed with the calculation? of sig itself?
If you take a closer look at the main formula
sig = (m + sk ∗ r x ) ∗ k −1 (mod p) ,
You may notice that more is needed to sign a message because the signature formula involves multiplication by the modular inverse of k , and there is no way to get parts of an inverse of additive parts of k without revealing k itself.
refore, we would like to generate the shares of k in some specific way that allows us to also obtain the secret shares of k −1 . This subproblem is solved by a reverse t- party sampling protocol described in greater detail in Doerner et al .
Once we have such actions sk 1 , sk 2 ,…, sk t , k 1 , k 2 ,…, k t and v 1 , v 2 ,…, v t that sk 1 + sk 2 +… + sk t = sk, k 1 + k 2 +… + k t = k and v 1 + v 2 +… + v t = v, we can calculate the actions sig 1 , sig 2 ,…, sig t of a signature as sig = v i ∗ m + w i ∗ r x , where w 1 , w 2 ,…, w t , are the parts of sk ∗ k −1 , calculated by another supplementary protocol for multipart multiplication. signature is then restored as sig = sig 1 + sig 2 +… + sig t .
Now that the main concept is clear, let’s dive into the details.
first important question is how to distribute shares of the secret key between nodes in a decentralized escrow system. One of the best ways to do this is to use the Polynomial Secret Sharing, or as it is better known, the Shamir Secret Sharing Scheme.
In this scheme, the nodes are assigned addresses i 1 , i 2 ,…, i n , which are some unsurts of ℤ p . To make a threshold t- de- n secret sharing the secret unsurt sk of ℤ p , randomly select t – 1 field unsurts c 1 , c 2 , …, c t-1 of ℤ py the use as coefficients of a polynomial P sk (x) = sk + do 1 ∗ x + do 2 ∗ x 2 +… + do t-1 ∗ x t-1 of degree t – 1 with the free term equal to sk . After that, we create n actions for our schema: (i 1 , P sk (i 1 )), (i 2 , P sk (i 2 )),…, (i n , P sk (i n )) . Later , another polynomial P k is constructed in the same way to distribute the secret parts of k .
Knowing t of such percentages allows us to restore the secret with a little help from the classical Lagrange interpolation theorem , which states that
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where I is any subset of t parts of {i 1 , i 2 ,…, i n } .
current version of the pay-as-you-go scheme involves a so-called distributor , who knows sk and distributes the shares. So it is not suitable for our needs, because we assume that no party (including the user) knows sk . However, a small schema tweak easily solves this problem. Instead of selecting a polynomial ourselves, we allow the parties to generate their own polynomials P sk, i , and then define P sk as their sum.
n the actions are defined in the same way as before. To calculate them, each part i transmits the values P sk, i (j) for all j = i 1 , i 2 ,…, i n and learns the values of P sk, j (i) of all the other parts with j = i 1 , i 2 ,…, i n . Finally, reconstruct P sk (i) as the sum of the learned values.
This version is sometimes referred to as Shamir’s Secret Dealer Sharing.
It is also a basis for widely used subprotocols , such as Biased Random Number Generation (BRNG), Random Zero Generation (RZG), and Random Number Generation (RNG) (without bias), which allow multiple parties to generate a common random number in a decentralized fashion.
Note that we never calculate P sk explicitly so as not to reveal sk . It is also worth noting that this version is not subject to bias, since the sum of any number of random variables of ℤ p is uniformly distributed as long as at least one of the variables is uniformly distributed. Note that this statement is the same as the assumption of the absence of t opposing parties.
Finally, note that each share is a pair of ℤ p field unsurts and is only useful in the secret exchange for which they were created and does not provide information without other shares since its initial creation.
Now that we define how shares are created, let’s describe the details of the multipart multiplication protocol mentioned above. For this part, we recommend that you think of sk and k in terms of their respective polynomials P sk and P k . To state the problem clearly, we want to multiply sk and k without revealing them, using only operations with P sk and P k .
simple way to do this is to multiply the polynomials themselves. constant terms will also be multiplied. Polynomial multiplication can be easily done if each part i multiplies its secret parts of sk and k , such as (P sk ∗ P k ) (i) = P sk (i) ∗ P k (i) . Simply put, the secret actions of the product are the product of the secret actions of the multipliers.
fundamental problem of naive MPC multiplication
However, notice that after multiplying two polynomials of degree t – 1, the degree of their product is not t – 1 but 2 t – 2. A simple example of this is x ∗ x = x 2 , where we obtain a polynomial of Degree 2 from two polynomials of degree 1. In particular, this implies that to interpolate the product polynomial we now need 2 t – 1 honest parts.
This not only imposes a condition 2 t – 1 ≤ n or t ≤ n / 2, which is clearly not the supermajority we aspire to, but also creates the gap requirement m ≤ (n – (2t – 1)) / 2 over the number m of opposing parties, due to the Reed-Solomon error correction code. se combined inequalities give us a limit of t ≤ n / 6 for the practical scenario of m = n / 3 .
It is possible to avoid the latter linked to Pedersen’s commitments , but it will not eliminate the first problem, which is rooted in naive polynomial multiplication.
This problem is fundamental and prone to the following logical error: one may think that if we need 2 t – 1 honest nodes to sign the message, then the adversary would also need to corrupt 2 t – 1 parts in order to forge a signature. This is, however, totally wrong, since the opponent does not need to follow the protocol and can simply restore sk and k only from t – shirts actions.
This asymmetrical situation feels strange and does not appeal to the public. As a real life example, imagine having two locks on your door. You need both keys to open it, but everyone else can enter your home with one key. Sounds weird, right?
same issue was found in the RenVM whitepaper , but it was not resolved at the time.
However, more recent protocols allow any t-party to sign while resisting against an adversary that controls the t- parts . We will summarize some of these here. Canetti et al. proposed a solution that allows strong identifiable aborts and fast one-round online signatures, removing all the hard calculations to the offline stage. Gennaro et al. it also offers identifiable abortions and more efficient calculations achieved by limiting the use of zero-knowledge tests. This protocol also provides the possibility of a proactive key update (which is especially useful in the presence of cold wallets).
Gągol et al. proposed what was at the time the first rogue majority threshold protocol, robust in the signature phase. In Doerner et al. , very few safety assumptions are made. However, the number of rounds in the protocol presented in this document increases logarithmically with t, which could slow it down for larger systems.
After careful consideration of all these protocols, we arrived at the solution that combines their best practical parts. We will soon publish a follow-up document that describes our approach in more detail.
Consensus Mechanism and Tokenomics
Consensus mechanism
Before starting the Velas Blockchain implementation, our team was researching all possible solutions to find the most suitable for a decentralized, scalable and secure network with the potential to incorporate billions of users.
To find the solution, we have analyzed a total of 48 consensus mechanisms, including 34 evidence-based solutions, 7 vote-based solutions, and 8 alternatives (DAG-based).
Having reviewed most of the existing consensus mechanisms, we can summarize that the consensus protocols based on intensive computation suffer from problems of high power consumption, environmental pollution, low transaction throughput and low scalability.
On the other hand, capacity-based protocols solve the problem of high power consumption, but they tend to be biased towards the rich (wealth dominance) and are more prone to malicious attacks.
Voting-based protocols solve the problems of high computational power consumption, low transaction throughput, and scalability in compute-intensive protocols, but make the network less decentralized. Also, the amount of data transfers is high in voting-based protocols, leading to higher power consumption.
It should be noted that there is a need for a highly scalable, decentralized, energy efficient, and high performance blockchain consensus protocol to address the misalignment between existing protocols and customer services where applications are rapidly evolving to comply with the requirements of a collaboration. large-scale ecosystem.
refore, the DPoS consensus mechanism has been chosen as the most appropriate solution that with an intelligent configuration could meet all the requirements in the network and the level of network participants:
It is much more scalable and PoW and traditional PoS consensus
It is democratic and encourages a decentralized form of network governance due to the role of delegates in the network.
entry threshold into the DPoS consensus is extremely low, making it one of the most decentralized consensus mechanisms in existence.
DPoS mechanisms have strong protection against double-spend attacks.
However, there are many variables in technologies as complex as consensus mechanisms. refore, proper configuration and properly established interaction rules are required within the network.
Tokenomics
General description
Tokenomics are the economic rules of behavior and interaction of the participants in the blockchain network. Velas AIDPoS consensus is based on the economics of DPoS, and AI does not affect tokenomics at all. A set of rules has been established to provide participants with the most favorable conditions for interaction with each other and to motivate them to act for the benefit of the network.
Basic VLX metrics:
Total supply – 2,124,380,663 VLX;
Circulating supply – 2,124,380,663 VLX;
Inflation rate – 8%;
Velas has inherited most of the sets designed by Solana. Below you will find documentation related to the parts of the Candle Tokenomics that come from Solana:
Overview
Terminology
Inflation program proposed by Solana
Adjusted participation return
Transaction fees
Storage rental economy
Strike
We have implemented some changes compared to Solana’s tokenomics regarding the number of tokens that participants must apply to the particular role:
To become a Validator, the user must have at least 1 million VLX Tokens
To become a delegator, the user must have at least 10,000 VLX Tokens
re are two options for betting on the Velas system: create your own group and become a validator or join an existing group as a delegator .
DPOS (Delegated Proof of Stake) provides the opportunity for delegates to “vote” on potential validators by betting tokens on them and increasing their chances of becoming validators.
How to buy Candles (VLX) Token?
Next we are going to provide you with a simple tutorial so that you can buy Candles (VLX) Token in a simple way.
Well then I leave you a tutorial on how to buy it, you can buy it through Pancakeswap or poocoin.app, we will do it from pancakeswap and in case you don’t know, we need to have a portfolio either from trustwallet or metamask, in this case I I use metamask.
Here you have a tutorial on how to create a portfolio in metamask:
Tutorial create metamask account
Once we have our portfolio of metamask created, what we have to do is copy our address as indicated by the arrow and put it with the network of Binance Smart Chain.
To put it with the Binance SmartChain network we have to do the following:
Where it says “MAIN ETHERUM NETWORK” you give it and then you add “custom network” and you put the following:
Network name: Smart Chain New RPC URL: https://bsc-dataseed.binance.org/ ChainID: 56 Symbol: BNB Block Explorer URL: https://bscscan.com
n you have to copy the Metamask address and have it on that network.
FIRST STEP TO BUY Candles (VLX) Token
To buy Velas (VLX) Token we are going to need BNB, which is the currency of binance, since this token works through its network. so the first thing will be to register here to enter binance and be able to buy BNB.
Next we have to go buy crypto and we have to select BNB to buy it, in this case I do it with Euros and with a debit or credit card .
Once the bnb are bought, we go to our Binance wallet and we hit SPOT and we go down until we see BNB and we hit “Withdraw” or “Withdraw”.
–
n on the next page that will come out, we have to paste our metamask address and put the BSC network and we would already have the BNB in our metamask portfolio .
SECOND STEP TO BUY Candles (VLX) Token
first thing will be to go to pancake swap: Pancake
When we get to pancake swap we have to connect our metamask portfolio with the binance smart chain network and then put the Velas (VLX) Token at the bottom, although it should come out automatically, if not, paste the following contract in the Token part: 0xe9c803f48dffe50180bd5b01dc04da939e3445fc
In the following image I show you:
Once the token is added, we simply have to put the amount of bnb that we want to exchange for Candles (VLX) Token and voila, it would be bought and in our metamask portfolio.
PRICE Candles (VLX) Token LIVE.
price of the token can be seen in the following link: Price
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