28 OCT | Ask Me Anything: Marketing Manager Birdie to Answer Your Questions on the Taproot Wallet from V0.1.0
From November 11th, ComingChat has released the latest version V0.1.0.
In that version, we develop and publish our first Threshold Signature Wallet based on Taproot upgrade. It is very important for everyone to understand where the story was going on before you begin. Learn what you will get throug Taproot upgrade.
Here is the summary of AMA session.
1. Please briefly explain the major changes from the latest version of ComingChat?
The availability of the soft upgrade of the bitcoin network ‘Taproot’ is a big step for the crypto industry to understand bitcoin. Thanks to Taproot’s MAST + Schnorr function, complex smart contracts that protect and regulate bitcoin’s consumption can now be hidden. This represents a major victory for bitcoin user-privacy, and its implementation is something that ComingChat, as one of bitcoin’s core supporters, is looking forward to.
We insist on the Taproot upgrade, which will benefit everyone on the bitcoin network. We recognized it as a milestone event in the blockchain industry and the opportunity resulted in Taproot becoming an application for ComingChat. We could say that the Taproot upgrade opened the door for us.
No other ecosystem has the outreach and scale that ComingChat has. It is useful for various users whether they’re creators, developers, or a business of any sort.
Here’s what you can get from ComingChat V0.1.0:
Threshold Signature Wallet applied on MiniX Chain
We’re proud to offer the Threshold Signature Wallet before the Taproot upgrade.
With as much time as we’re all spending on cryptocurrencies, the security of digital assets is important. ComingChat V0.1.0 brings you closer to what you care about and is designed with you being our focus. We’re excited to introduce this new update in Coming wallet on ComingChat V0.1.0.
2. Why does Threshold Signature Wallet matter? Why Threshold Signature Wallets are better than MultiSig?
Threshold wallet and Multisig wallet both are cryptographic approaches to address the single biggest risk with cryptocurrencies and that is: anyone with access to the wallet private key can steal the associated digital assets, and the transaction is not reversible. The difference between the two technologies is primarily the approach in mitigating this single point of failure, and more importantly the resulting implications of that approach.
Reason #1: Threshold wallet accepts Single Signature, so no special coding or smart contracts are required for multiparty approvals with Threshold Signatures
Threshold Signatures appear on-chain as a standard single signature (typically an ECDSA or EdDSA signature). Presumably, every blockchain and digital asset protocol natively supports a standard single signature, so no special coding or smart contracts are required for multiparty approvals with Threshold Signatures. In contrast, MultiSig requires the ability for each digital asset protocol to record a variable number of multiple signatures. BTC natively supports this capability for basic MultiSig, but most other digital assets do not. This results in the requirement for many MultiSig wallets to support smart contracts or other customizations which bring new vulnerabilities, added expense, and often delayed support of new digital assets.
Reason #2: Threshold wallet accepts Single Signature to reduce transaction size, lower cost and results in higher prioritization
Threshold Signatures appear on-chain as a standard single signature regardless of the number of approvers. In contrast, MultiSig requires the recording of signatures for each participating approver. For protocols like Bitcoin, these additional signatures represent a very material percentage of the overall transaction size, thus reducing the number of transactions that can be processed per block. As a result, miners prefer to process single-signature transactions over MultiSig. This can result in processing-delays or may require higher bids to secure timely-processing. In the case of Ethereum, the processing of additional smart contracts required to support MultiSig, consumes additional gas. In both cases, the net result is an increase in the mining fees, which results in higher overall transaction fees for MultiSig.
Reason #3: Threshold wallet accepts Single Signature to Increase privacy and security
Threshold Signatures appear on-chain as a standard single signature, regardless of the number of approvers. Approvers can be changed, added, or removed, and there is no change in the resulting signature. So, potential adversaries have no visibility to the security policy of a particular wallet and the timing of periodic updates, etc. In contrast, MultiSig records the signature of each approver on the public blockchain for successful transactions. The result is- potential adversaries have full knowledge of security policies, such as, how many parties are approving transactions, and the parties are visible whenever changes are made. No other security scheme provides such transparency to adversaries because this information can be used to defeat the system.
MultiSig advocates will often state that recording approver signatures on-chain provides greater accountability with audit trails published in the public domain. They often imply that the lack of such on-chain records with Threshold Signatures is a short-coming. But, both of these perspectives are fundamentally flawed. Individual approvals of Threshold Signatures and MultiSig can and should be recorded off-chain for an audit trail, including failed transaction attempts for forensics that MultiSig misses entirely. Doing so provides critical visibility to attempted and failed transactions (due to ineffective attacks or otherwise incomplete transaction approvals) which are not recorded on-chain with MultiSig.
Reason #4: Threshold Wallet can refresh key share without changing public or private keys to increase security and efficacy, without the burden of transactions
The best practice in key management security is to proactively change private keys on intervals that are frequent enough so that a hacker is unlikely to access and use them before a new key is activated. This can be done with MultiSig, but each time you change the private key, or replace a lost key, you must also execute an on-chain transaction to synchronize the public-private keys and accounts. This results in increased transaction fees and complexities that make proactive security impractical with MultiSig.
In contrast, Threshold Signatures use multiparty computation (MPC) to create a private key in the form of distributed key shares that are held by different parties. It’s possible to generate a massive number of different and random combinations of distributed key shares to represent the same private key. As a result, Threshold Signature wallets can proactively refresh the key shares on a recurring, on-demand, or combination basis without changing the private key (and eliminating the requirement for an on-chain transaction as is required with MultiSig). Doing so materially reduces the probability that an adversary could penetrate the defences of multiple different parties concurrently, and collect enough shares to recreate an entire key and execute a fraudulent transaction. As a result, Threshold Signatures provide the option to be inherently more secure than what is practically achievable with MultiSig.
Reason #5: Operational Flexibility of a Threshold Wallet has the ability to evolve and adjust to changing requirements
The only constant about the rapidly evolving digital asset market is change. Regulations are changing, customer expectations are changing, and the digital assets themselves are expanding to include not only cryptocurrencies but also security tokens which could completely redefine the scope and scale of the digital asset market. Regardless of how these things evolve, the nature of digital assets will require secure and increasingly flexible wallets. The off-chain nature of Threshold Signatures makes them profoundly more flexible and adaptable than the on-chain multiparty-approval-model of MultiSig.
Threshold Signature wallets leverage MPC to support the ability to change not only the key shares as discussed above, but also the security model in many cases without even requiring a change of the wallet or associated address. Threshold Signature wallets can be evolved to support 2 of 2, 2 of 3, 3 of 4, 4 of 8 or virtually any multiparty approval and threshold model which regulators or markets may demand.
Threshold Signature wallets can be implemented where all of the approving parties are on-line (internet-connected) or off-line (air-gapped) or a combination of both. Some Threshold Signature wallets incorporate pre-processing features to enable thousands of transactions per second along with the ability to generate complete signatures in a non-interactive fashion, thereby fully emulating the operation of a MultiSig wallet. These attributes, combined with the universal compatibility of a single signature make them profoundly more flexible and adaptable than any other multiparty transaction approval scheme.
There are of course many other compelling attributes and differentiators of MPC-enabled Threshold Signature wallets, such as the increased robustness of the threshold model which maintains secure operations even if some of the parties become compromised. The five reasons listed above are what I consider to be among the most broadly compelling reasons of why threshold signature wallets matter, nevertheless, certain use cases will benefit even more from other attributes
ComingChat developed and publicly announced the first Threshold Signature wallet in November 2021. We would love to explore how Threshold Wallet can help you achieve your objectives for a wallet which provides the optimal balance between security and liquidity.
3. How to use Threshold Wallet after updating to ComingChat V0.1.0?
Step#1: Create a multi-signature account
Select a target group chat that needs to create a multi-signature account (or create a new group chat between multi-signature account members), click the “+” sign on the left side of the chat content input box, and click “Transfer (Multisign)”, Click “Create a new multi-account”, select at least 2 group members in the “Select Members” page, click “Next” and enter “Multi-Account name”-enter “Threshold value” (this threshold must be greater than Equal to 2)-Enter “Coin type” and click “Create” in the upper right corner after completion to conclude the creation of a multi-signature account and have the threshold wallet function.
Step#2: Initiate a transaction through the group chat page
In the group chat that has created a multi-signature account, click the “+” sign on the left side of the chat input box, continue to click “Transfer (Multisign)”, select the Mini points multi-signature account in the prompt interface and click “Confirm”, Enter the transfer method selection interface “Send to contacts” or “Send to address”. After selecting “Send to contacts”, the interface jumps to the “Token Transfer” interface. Fill in the transaction amount and click “Continue”. A password prompt would pop up and you would need to enter the password.
Select “Send to address”, and fill in the receiving address and transaction amount in the “Token Transfer” interface. Click “Continue”, and fill in the account login password when prompted.
After following the steps above and entering the password, the page will immediately jump to the group chat. The information of the transaction will be reported in the group chat in the form of a dialog box, and at the same time, the members who need to complete the multi-signature operation will be prompted to do so in the form of a dialog box. Members, who need to multisign have to click the transaction prompt box to enter the transaction multi-signature interface. After confirming the information, agree to the transaction, click “sign” and fill in the password to complete the multi-signature. When the members prompted in the group chat to perform multi-signature complete the multi-signature procedure, the transaction is successful.
Medium Article: https://comingchat.medium.com/9443ecc5ab69
4. What scenarios can the threshold wallet of ComingChat currently be applied to? Can you give an example?
ComingChat Threshold Wallet is developed based on the Schnorr signature (Schnorr) technology upgraded and used by Taproot. It is intended to make ComingChat users’ asset transactions safer, more private and consume less handling fees. This version only supports multi-signature transactions for Mini Points for the time being.
So under what circumstances can current ComingChat users use the threshold wallet function?
· dealing with strangers
When you buy and sell NFT, CID, Mini Points and other assets with people you don’t know, you have the fear of encountering scammers! Please find ComingChat official transaction guarantor [Guarantor CID: 7]! Both parties of the transaction and Guarantor 7, three persons can create a multi-signature account. When both parties of the transaction confirm that the transaction is needed, one of the parties transfers the Mini points that need to be paid to the three-person multi-signature account, and when the user who transfers the Mini receives the purchased NFT or CID, the NFT or CID is sold. One party can initiate a multi-signature and transfer Mini points to their own account.
Tony has a 6-digit CID for sale, Merry sees this information and is willing to buy the 6 digit CID for 500 Mini Points.
The two parties reach an agreement in private chat and need a transaction.
They involve the official guarantor of ComingChat, (Guarantor CID: 7)
After establishing an agreement among the three, they establish a trading group chat and create a multi-signature account. Only two people need to sign (this is very important) to prevent Tony or Merry from being deceived.
Therefore, Merry transfers her 500 Mini Points to the multi-signature account established in the group chat.
Multi-signature accounts have a public account address, which can be seen after the account is created.
At this time, the 500 Mini Points are safe in the multi-signature account, because once someone tries to transfers the 500 mini points, the group chat will prompt any two of the three users to sign before the transfer can be successful.
After seeing the 500 Mini Points that have been transferred through the multi-signature account, Tony transfers his 6-digit CID to Merry.
Merry verifies receiving the CID! (This is very important; do not complete the multi-signature operation if you haven’t received the assets)
Now, Tony can initiate a multi-signature transaction and transfer 500 Mini Points to his private account
Both parties of the transaction safely completed the transaction in the threshold wallet!
In the above process, Guarantor 7 is only used as the guarantor to monitor the authenticity and effectiveness of the transaction, and there is no need to participate in the multi-signature if it is not deemed necessary. In case, Merry transfers the 500 Mini Points and Tony temporarily abandons the transaction and exits the multi-signature group, then Merry will get back the original 500 Mini Points to initiate a multi-signature, and Guarantor 7 is required to sign.
5. How to participate in the Mini Points airdrop giveaway event for Threshold Wallet?
Invite 2 or more trusted friends to create one Threshold Signature Wallet
Create a multi-signature account
Complete the multi-signature address and CID and address of participants before 5:00 AM EST Nov 14th and send the form. Mini Points will be airdropped to the Threshold wallet on November the 15th.
Registry form: https://jinshuju.net/f/EgZWta
Every qualified Threshold Signature Wallet will be airdropped 30 Mini Points.
Each qualified participant will be rewarded 1.251 Mini Points.
Find more details: https://comingchat.medium.com/70-000-mini-points-giveaway-to-celabrate-taproot-threshold-wallet-launch-5eef0e31e723
6. Does Threshold Wallet play an important role in building ComingChat’s metaverse?
ComingChat launched the first application upgrade on the market based on the Taproot upgrade and the actual application in November. The Threshold Wallet accelerates the adoption of the Bitcoin network, allowing users to store and circulate Bitcoin in a safer way, making users’ lives easier.
Due to the integration of various infrastructures, the main root will achieve more network multi-tags, characteristic address types, possible complex logic support, and overall reduction of fees, which will eventually benefit all users in the ecosystem. It will also create an open, instant payment network in the meta-universe, so that huge economic and business opportunities can be created worldwide.
ComingChat has established a reliable and interoperable simultaneous global payment system and financial infrastructure to provide frictionless payments for large number of users.
ComingChat, as a new digital asset product based on blockchain technology, will be composed of two parts. The two parts work together to create a more inclusive application that satisfies “private communication + BTC payment”:
- Secure, scalable and reliable blockchain technology as the technical pillar of the payment system;
- Only uses BTC as the stable currency, and does not implement spontaneous tokens for governance and operations.
7. What is the current development status of ComingChat and what is the latest plan?
ComingChat currently has 2 Million users, which are distributed among 192 countries from various regions around the world.
We will launch the semi-open NFT Market at the end of November. At present, we have reached an official announcement of cooperation with Cipholio Ventures investment institutions, and we will cooperate with more GameFi projects in the future.
Mining feature will add rare NFT computing power bonus in the future.
ComingChat is a trusted metaverse that provides a decentralized identity, a secure economic system, and a private social platform for users around the world. To meet the characteristics of the Web3.0 era, ComingChat will implement cutting-edge technologies based on the Bitcoin ecological network, into the actual application of the Bitcoin network. As a blockchain-driven decentralized platform and ecosystem, it supports a programmable identity system and internal production. Economic system, enhances user interactive services, DApp access, physical/digital/NFT market, etc. In future, it will provide an immersive experience through more artificial intelligence functions, and will serve the digital transformation of thousands of industries to achieve high-quality innovative development.
8. What difference dose it makes with the old Escrow Service and currently Threshold Wallet? Both will be done by CID 7?
The guarantor’s service is based on trust in the official, the entry of the threshold wallet can be separated from the official guarantor, looking for your own trusted friend as a witness. To a certain extent, this trust is more based on the multi-signature technology of the threshold wallet, because an account is supervised by two or more people, and the transfer of funds requires the consent of members.
And what you mainly rely on is the threshold wallet to successfully complete the transaction. Even if you do not trust the other party of the transaction, but strictly follow the operation of the threshold wallet to trade, you do not have to worry about any loss of funds.
9. Who will be in responsible for keeping the Asset’s by Buyer/Seller? Is it the Admin or The API(DataBase)?
The multi-signature account of Threshold Wallet keeps funds for the buyer. Because before the transaction, the buyer needs to deposit the funds into the multi-signature account that you built in advance. After ensuring that the seller provides the goods, the funds in the account can be transferred to the seller’s account after the seller initiates the transaction.
During this period, when the buyer does not receive the seller’s item, the funds will be safely stored in this multi-signature account.