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A distribution protocol for dealer-less secret distribution

By Craig Wright | 17 Oct 2018 | Bitcoin & Blockchain Tech

In this post I again preview a paper written a couple of years ago, but not yet published. The first draft of this paper dates to July 2016 and is available from:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=3265164

As the value of bitcoin increases, more incidents such as those involving Mt Gox and Bitfinex will occur in standard centralised systems. The addition of group-based threshold cryptography with the ability to be deployed without a dealer and which supports the non-interactive signing of messages provides for the division of private keys into shares that can be distributed to individuals and groups to provide additional security. This scheme creates a distributed-key-generation system for bitcoin that removes the necessity for any centralised control list minimising any threat of fraud or attack. In the application of threshold-based solutions for DSA to ECDSA, we have created an entirely distributive signature system for Bitcoin that mitigates against any single point of failure. When coupled with retrieval schemes involving CLTV and multisig wallets, our solution provides infinitely extensible and secure means of deploying Bitcoin. Using Group and ring-based systems we can implement blind signatures against issued transactions.