207 lines
9.6 KiB
Markdown
207 lines
9.6 KiB
Markdown
BSIP: 0008
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Title: Privacy (STEALTH) Mode
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Authors: Daniel Larimer <Dan@cryptonomex.com>
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Fabian Schuh <Fabian@BitShares.eu>
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Status: Draft
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Type: Protocol
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Created: 2015-12-16
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Discussion: <https://github.com/cryptonomex/graphene/issues/452>
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<https://bitsharestalk.org/index.php/topic,20104.0.html>
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<https://bitsharestalk.org/index.php/topic,20499.0.html>
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Worker: 1.14.18
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# Abstract
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Privacy Mode Transfers (a.k.a. Stealth Transfers) are used to maintain user
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privacy. This feature helps set BitShares apart from most other crypto
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currencies and offers tremendous value to the users who are most interested in
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privacy, liberty, and freedom.
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In practise they combine the techniques of *blinding signatures* to hide the
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amount of a transfer and *stealth addresses* (similar to TITAN in BitShares 1)
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to hide involved parties.
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# Specifications
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This proposal involves creating a new front-end feature on the account page in
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the web wallet to allow users to enter the *privacy mode*. Here, users will be
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able to create *private accounts* which are labeled private keys. They will
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also be able to manage *private contacts* which are labeled public keys. Neither
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private accounts nor private contacts are tracked on the blockchain since those
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keys are not used directly. Instead, each transaction will derive a
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transaction-specific address from the private contact's public key. A off-chain
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memo helps the receiver identify the deposit and derive the corresponding
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transaction-specific private key from the private account.
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Users will be able to monitor their private balances and take the following
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actions:
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* Transfer from public account to their own private balance
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* Transfer from one of their private accounts to one of their private contacts
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* Transfer from one of their private accounts to any public account
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* Register a new account using a private balance.
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* Receive a private transfer from a 3rd party given a transfer receipt.
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These features are already available on the blockchain level using *address
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authorities* and *key authorities* and indicating that a transaction to that
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account has to be made in private.
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## GUI Mockup
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The goal of this proposal is to have a front end developed (or integrated into an
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existing web wallet) that allows ordinary people to use the privacy mode without
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further knowledge about the underlying technology. Thus, a proposal for the user
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interface has been drafted and is attached to this proposal as
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[pdf](bsip-0008/gui-mockup.pdf).
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[slide 1](bsip-0008/gui-mockup-0.png) [slide 2](bsip-0008/gui-mockup-1.png) [slide 3](bsip-0008/gui-mockup-2.png)
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[slide 4](bsip-0008/gui-mockup-3.png) [slide 5](bsip-0008/gui-mockup-4.png) [slide 6](bsip-0008/gui-mockup-5.png)
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[slide 7](bsip-0008/gui-mockup-6.png) [slide 8](bsip-0008/gui-mockup-7.png) [slide 9](bsip-0008/gui-mockup-8.png)
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This draft has been designed with user experience in mind but may be improved if
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it serves its purpose.
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# Implementation Aspects
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## Backup Considerations
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Because private transfers are not recoverable from blockchain data alone,
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backups of your wallet after receiving a new private transfer are *required*.
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## Javascript Implementation
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This proposal will require the use of a JavaScript library to perform the
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necessary crypto operations in the web wallet (see [1]).
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# Funding
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BitSharestalk.org forum user `onceuponatime` has proposed to fund the
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development and implementation of this feature in full as a private investor and
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at zero cost to BitShares shareholders.
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## Contract between `onceuponatime` and Cryptonomex:
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The purpose of this contract is to develop a Privacy Mode feature, Privacy Mode
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fee accumulation account, Maintenance Account, Initialization Package, and GUI
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interface for BitShares scoped for a firm fixed price of $45K. The following
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requirements apply:
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1. The Privacy Mode feature shall be implemented as proposed in
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https://github.com/cryptonomex/graphene/issues/452 (as amended).
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2. It shall provide the following fee based services:
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* Transfer from public account to their own private balance
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* Transfer from one of their private accounts to one of their private contacts
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* Transfer from one of their private accounts to any public account
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* Register a new account using a private balance.
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* Receive a private transfer from a 3rd party given a transfer receipt.
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3. Each of these services shall charge a fee initially set at 3x the standard
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transfer fee, but which may be adjusted from time to time by the owner(s) of
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the Privacy Mode's management account (see [BSIP-0008](bsip-0008.md))
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4. Fees shall be automatically distributed by the blockchain to the following
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accounts:
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* 20% to the BitShares network.
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* 20% to a Maintenance Account.
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* 60% to holder(s) of the Privacy Mode Fees accumulation account
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5. The Maintenance Account shall be controlled by five specified manager
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accounts in a 3 of 5 multisig configuration. These managers will control
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the allocation of this fund to future maintenance and upgrade tasks.
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6. The Initialization Package shall modify the blockchain to make the Privacy
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Mode feature available to users.
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7. The Initialization Package shall make provision for the creation of
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generic Fee Based Assets (FBA) and set the fee for such
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8. A GUI shall be provided in the OpenLedger and Light wallets to allow
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ordinary users to easily use the Privacy Mode features.
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9. Documentation of the Privacy Mode feature and Maintenance and Fee
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Accumulation account shall be provided on the appropriate reference web
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sites.
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10. Resulting software patch to the Graphene library shall have the same
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license as the rest of Graphene subject to the condition that the results
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of the Initialization package and fee distribution mechanisms are not
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modified.
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# Management Account
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The STEALTH asset will be issued by the "management account" (see
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[BSIP-0007](bsip-0007.md)) for this feature (as created by the initialization
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package). `Onceuponatime` will be the initial owner of the issued asset (not the
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issuer). This management account will have 3-of-5 multi-signature authority
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assigned to the 5 *largest* STEALTH holders weighted proportional to stake and
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will have the power to set the fee.
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# Roadmap
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* Feedback and discussion of this thread: *December 8 to December 10, 2015*
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* Presentation of an amended Cryptonomex Worker Proposal: *Dec 11, 2015*
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This worker proposal should include Milestones of what is intended to be
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accomplished by the end of week 1, week 2, week 3, week 4 and week 5 so that
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the Community can follow progress in the github.
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* Voting for Worker Proposal: *Dec 11 to January 1, 2016*
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* onceuponatime forwards $45,000 to Cryptonomex: *Jan.2, 2016*
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* Cryptonomex does the development and testing of the feature: *(4 to 6 weeks)*
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* Hard fork for implementation of the feature: *Monday Feb, 15th*
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# Worker Proposal
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The worker proposal `1.14.18` is dedicated to poll shareholders about their
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willingness to implement the Privacy Mode feature in a hard fork. It serves the
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private investor as an indicator whether shareholders would appreciate his
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investment and agree to upgrade the protocol accordingly.
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Since the implementation is funded by a private investor, the worker only pays
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approx. $300.
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# Discussion
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For the best user experience this proposal is best combined with proposal for
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*hosted wallets* (to be defined).
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## No Participation in Referral Program
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The referral program does not play with Privacy mode transfers (because it is
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private, we don't know who the parties are or who referred them). This means
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that even if the fee were the same as the basic transfer, on average the
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lifetime member would be paying 5x more a Private Transfer than a Public
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Transfer. If you charge 3x the basic transfer fee, then life time members will
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pay 15x more for a Private transfer than a Public transfer.
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Percentage based fees are not possible with Private Transfers either because the
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amount being transferred is *private*!
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## Worker as Poll
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When the project is complete, the new software will be presented to the
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witnesses as an opportunity to hard fork by switching to running the new
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package/software. At that time witnesses will face a choice:
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1. Honor the proposal at the time the decision to spend the private investor's money was made, or
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2. Honor the proposal at the time the product is delivered (if it has changed in the mean time).
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Acting against the wishes of Vote 2 could get them fired if enough people
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disagree with them keeping the implied commitment of Vote 1.
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Acting against the wishes of Vote 1 means that BitShares gets a reputation for
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reneging on a prior vote upon which an entrepreneur has relied.
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This means that even if some voters have changed their minds about this proposal
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by installation time, they might *not* decide to fire otherwise faithful
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witnesses for deciding to obey Vote 1 in order to preserve BitShares' reputation
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in future deals.
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Considering the participation rate in the worker poll: those who do not care
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enough to vote are ignored in the decision making process as it is supposed to
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be.
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## Privacy Mode not Most Pressingly Needed
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The argument was raised that the Privacy Mode as proposed here is not the
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feature most pressingly needed for BitShares right now.
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## Worker Poll Interval too Short
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# Copyright
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This document is placed in the public domain.
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# See Also
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* [1] https://github.com/arhag/crypto-experiments/tree/emscripten/emscripten/libsecp256k1-demo
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