System and method for cryptographically authorizing blockchain

System and method for cryptographically authorizing blockchain transactions

Glossary

Term DefinitionsBlockchainA distributed database that uses cryptographic techniques to ensure data security and immutability. BitcoinA cryptocurrency and the first decentralized blockchain application. NodeA participant in a blockchain network, each of which maintains a copy of the blockchain data. TransactionA value transfer behavior on a blockchain, such as transferring bitcoins. WalletA software or hardware used to store and manage cryptocurrency. Private keyA secret information used to authorize a transaction, similar to a bank account password. Public keyA public information derived from a private key and used to verify a transaction signature. A digital signature is a cryptographic technique used to prove that a transaction is authorized by the owner of a private key. Threshold signatureA multi-party signature scheme that requires multiple participants to jointly generate a valid signature. Elliptic Curve Digital Signature Algorithm (ECDSA)A commonly used digital signature algorithm based on elliptic curve cryptography. Bilinear mapA special mathematical map that is often used in cryptography to build pairing-based cryptographic systems. Verifiable Secret SharingA secret sharing scheme that allows verification that the shared secret is correct. Proof of Work (PoW)A consensus mechanism that requires participants to perform a large amount of computational work to obtain blockchain accounting rights. Proof of Stake (PoS) is a consensus mechanism that distributes blockchain bookkeeping rights according to the proportion of equity held by participants. Smart contracts are a piece of code stored on the blockchain that is automatically executed when preset conditions are met. Hash function is a function that maps input data of any length to output data of fixed length. Short answer questions

What is the most famous application of blockchain technology? What are its characteristics?

Answer: The most famous application of blockchain technology is Bitcoin. Blockchain has the characteristics of decentralization, security, transparency, and immutability.

What are the consequences of losing the private key of encrypted assets? What is the difference with losing the password of a bank account?

Answer: The private key of encrypted assets cannot be recovered because blockchain transactions are irreversible and there is no centralized institution to arbitrate. In contrast, the password of a bank account can be recovered through identity verification after it is lost.

What is a brain wallet? What are its advantages and disadvantages?

Answer: A brain wallet is a method of generating a private key by memorizing a password or mnemonic. The advantage is that there is no need to store the private key, and the disadvantage is that it is easy to be cracked by brute force and has high requirements for the security of the password.

How does the security method mentioned in the article solve the security problems of traditional brain wallets?

Answer: The security method mentioned in the article uses the conference and threshold signature mechanism to divide the private key into multiple parts, which are kept by conference members respectively. Only when a certain number of members participate together can the transaction be authorized, which improves security.

What role does the conference play in this scheme? How do conference members generate public and private keys?

Answer: The conference is responsible for managing the user's digital assets and uses the threshold signature mechanism to authorize transactions. Conference members generate their own private key shares through a distributed protocol and jointly generate a conference public key.

How do users use this scheme to store and pay funds?

Answer: Users lock digital assets under the conference public key through fund provision transactions, and use passwords and partial information provided by conference members to generate signatures to authorize payment transactions.

How does this scheme prevent malicious users from stealing funds?

Answer: This scheme uses a threshold signature mechanism. Only when a certain number of conference members participate together can the transaction be authorized, preventing a single malicious user from stealing funds.

What are the advantages of this scheme compared with traditional digital signature schemes?

Answer: This scheme combines the password selected by the user with the threshold signature mechanism, which improves security and ease of use. At the same time, it does not require users to store high-entropy passwords, reducing the risk of password theft.

What is the role of the transaction deposit mentioned in this scheme?

Answer: Transaction deposits are used to incentivize meeting members to participate in transaction verification and punish malicious behavior. If transaction signature verification fails, the deposit will be confiscated.

How is the security of this scheme guaranteed?

Answer: The security of this scheme is based on cryptographic principles and economic incentive mechanisms. The threshold signature mechanism and transaction deposits ensure the security of funds, while the passwords selected by users also increase the cost of attackers.

Essay questions

Discuss the threshold signature mechanism used in this scheme in detail and analyze its advantages and disadvantages.

Analyze how this scheme solves the security issues of traditional brain wallets and compare it with other crypto asset security storage solutions.

Explore the applicability of this scheme in different types of blockchain networks and analyze its potential application scenarios.

Discuss the challenges and risks that this scheme may face in practical applications and propose corresponding solutions.

Analyze the innovation and application prospects of this scheme from a technical and commercial perspective, and look forward to its future development trends.