Secret Network & Monero Grant: A Leadership Proposal

In the dynamic world of blockchain and cryptocurrency, collaborations often lead to groundbreaking innovations. This article delves into a proposal for Secret Network leadership to support a Monero Community Fund application. The goal? To build x/tss, a threshold signature module that empowers smart contracts to control external private keys. This initiative promises to bring significant advancements to both the Monero and Secret Network ecosystems. Let's explore the intricacies of this proposal, its potential impact, and the technical aspects involved.

The Proposal: A Collaborative Vision for Enhanced Security and Functionality

The core of this proposal lies in the synergy between Monero's privacy-centric blockchain and Secret Network's confidential computing capabilities. The request is straightforward: seek official backing and technical coordination from Secret Network leadership for a Monero Community Fund application. The intended outcome is the development of x/tss, a crucial module that would allow smart contracts to manage and control external private keys securely.

Monero, with its substantial market capitalization, currently lacks trustless bridge options. The x/tss module aims to bridge this gap, providing a mechanism for secure cross-chain interactions. However, the utility of x/tss extends far beyond bridging. It is envisioned as a fundamental primitive that enables any smart contract to programmatically sign transactions on any external chain. This unlocks a plethora of possibilities for decentralized finance (DeFi) and other blockchain applications. The financial aspect is also noteworthy: Monero would fund the development, while Secret Network gains a versatile and essential tool for its ecosystem.

x/tss: The Foundational Primitive for Programmable Custody

At its heart, x/tss is designed as a foundational element for programmable custody. It comprises four key functions that can be invoked from any CosmWasm contract, making it highly flexible and adaptable. These functions are:

• DKG(): This function facilitates Distributed Key Generation. It generates a public key, which could represent a Bitcoin address, Monero address, Ethereum EOA, or any other external chain address. This is the cornerstone for creating secure, multi-party controlled keys.
• Sign(payload): This function initiates a threshold signature request. Validators contribute their shares through vote extensions, and the resulting signature is returned via a sudo callback. This ensures that no single entity controls the key, enhancing security.
• Reshare(): This function enables the rotation of shares while preserving the public key. This is critical for maintaining security over time, as old shares become obsolete, and external addresses remain unchanged. Regular reshares mitigate the risk of key compromise.
• Delete(): This function securely destroys the key, ensuring that it cannot be accessed or misused once it is no longer needed. This is crucial for responsible key management and security hygiene.

The brilliance of this design lies in its policy layer. The contract itself defines the rules and conditions under which the keys can be used. Validators participate in the signing process but remain oblivious to the underlying policy. This separation of concerns enhances both security and flexibility, allowing for a wide range of use cases.

The Unique Security Proposition of Secret Network

Why is Secret Network the ideal platform for x/tss? The answer lies in its unique combination of technologies: TEE (Trusted Execution Environment), TSS (Threshold Signature Scheme), and Confidential Contracts. This trifecta creates unparalleled security properties:

1. Threshold Security: No single party holds the entire key. The key is split into shares, and a threshold number of shares is required to sign a transaction. This eliminates the single point of failure inherent in traditional key management systems.
2. TEE Isolation: Shares are protected within a Trusted Execution Environment, preventing extraction even if a validator's machine is compromised. This hardware-level security adds a robust layer of defense against attacks.
3. Hidden Policy: Validators are unaware of the threshold required for signing. The use of FROST shares ensures that the polynomial degree, which determines the threshold, remains hidden. This adds an additional layer of obfuscation, making it harder for attackers to target the system.
4. Proactive Reshare: Regular, cron-triggered share rotation resets the progress of any potential attacker. This proactive approach to security ensures that the system remains resilient against evolving threats.

The combination of these factors makes it exceptionally challenging for an attacker to compromise the system. The cost of corruption becomes difficult to estimate, as key parameters remain invisible. This level of security is paramount for applications that require high assurance, such as cross-chain bridges and custody solutions.

Monero-Specific Enhancements for Seamless Integration

To ensure seamless integration with Monero, the x/tss module requires specific adaptations. These enhancements address Monero's unique cryptographic requirements:

• hash_to_ec: Monero uses a hash-to-curve function for key image generation. This function needs to be ported to Go, the programming language used by Secret Network, to ensure compatibility.
• Threshold Key Images: Each validator computes a partial key image (K_i = x_i * H_p(P)), which are then aggregated to form the complete key image (K = x * H_p(P)). This mechanism is crucial for preventing double-spending on Monero.
• FCMP++ Compatibility: The signing process must be compatible with Monero's upcoming Full Chain Membership Proofs (Curve Trees over Selene/Helios cycles). This forward-looking approach ensures that the x/tss module remains compatible with future Monero upgrades.

Addressing these Monero-specific requirements also solves general challenges related to vote extension aggregation, asynchronous callbacks, reshare-with-stable-pubkey, and validator set changes. This demonstrates the comprehensive nature of the project and its potential to benefit the broader blockchain ecosystem.

Security Comparison: x/tss on Secret Network vs. Alternatives

To fully appreciate the security advantages of x/tss on Secret Network, it's essential to compare it with alternative solutions:

As the table illustrates, x/tss on Secret Network offers the most robust security model, particularly for non-IBC chains like Bitcoin and Monero. The combination of threshold security, TEE isolation, and hidden policy provides a level of assurance unmatched by other solutions. The ability to define arbitrary per-contract policies adds significant flexibility and control.

The Ask: Seeking Support and Collaboration

The proposal's success hinges on collaboration and support from the Secret Network community. The specific requests are:

1. Official backing: A formal statement of support for the Monero grant application. This endorsement would significantly strengthen the proposal's chances of approval.
2. Technical coordination: Architecture review and a commitment to merge the x/tss module into Secret Network if it meets established standards. This ensures that the module is well-integrated and secure.
3. Co-marketing: A joint announcement upon grant approval. This would amplify the impact of the collaboration and raise awareness within both the Monero and Secret Network communities.

Use Cases Enabled: A World of Possibilities

The x/tss module unlocks a plethora of exciting use cases, transforming how we interact with blockchain technology:

• Smart contract wallets with cross-chain control: Users can manage assets across multiple chains from a single wallet, simplifying the user experience and enhancing interoperability.
• DAO treasuries spanning multiple chains: Decentralized Autonomous Organizations (DAOs) can securely manage funds across different blockchains, fostering greater flexibility and participation.
• Bridges with arbitrary policy logic: Cross-chain bridges can be customized with specific rules and conditions, enabling more sophisticated and secure interactions between chains.
• Recovery mechanisms in contract code: Contracts can be designed with built-in recovery mechanisms, ensuring that assets are not lost in the event of unforeseen circumstances.
• Programmable escrow: Escrow services can be automated and customized through smart contracts, reducing the need for trusted intermediaries.
• Atomic swaps without online requirement: Secure, peer-to-peer asset exchanges can be conducted without requiring both parties to be online simultaneously.
• Dead Man switch: A mechanism can be implemented to automatically execute specific actions if a user becomes incapacitated or deceased, ensuring the proper handling of their digital assets.

These use cases represent just a fraction of the potential applications for x/tss. The module's versatility and security make it a powerful tool for innovation in the blockchain space.

Timeline: A Roadmap to Implementation

The project timeline is structured into distinct phases, each with a specific duration:

This timeline reflects a realistic and achievable plan for developing and deploying the x/tss module. Regular progress updates and community involvement will be crucial for maintaining momentum and ensuring the project's success.

The Team: Experienced Builders and Innovators

The team behind this proposal comprises experienced developers and innovators with a proven track record in blockchain technology. A key member is Braydn (zenopie), who has already built a working x/tss prototype with vote extension integration. Braydn is a Secret Network validator and the founder of Earth Network. His expertise in multi-party computation (MPC) and WebAssembly (WASM) makes him well-suited to lead this project. You can explore his work at github.com/zenopie/mpc-wasm-chain.

Conclusion: A Bright Future for Cross-Chain Collaboration

The proposal for Secret Network leadership support for a Monero Community Fund grant represents a significant step forward in cross-chain collaboration. The x/tss module promises to unlock a world of new possibilities for secure, programmable custody and interoperability. By combining the strengths of Monero's privacy features and Secret Network's confidential computing capabilities, this initiative has the potential to transform the blockchain landscape.

This project not only enhances the security and functionality of both Monero and Secret Network but also paves the way for future collaborations and innovations. The commitment to open-source development and community involvement ensures that the benefits of x/tss will be widely accessible. As the project progresses, it will be exciting to witness the realization of its potential and the emergence of new use cases that were previously unimaginable.

To further explore the concept of threshold signatures and their applications in blockchain security, you can visit the Threshold Signatures Wikipedia page. This resource provides a comprehensive overview of the technology and its significance in the field of cryptography.