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Decentralized Threshold Signing Service (#2550)
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‎applications/DecentralizedThresholdSigningService.md‎

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# Decentralized Threshold Signature Service Implementation
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- **Team Name:** Rui Morais
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- **Payment Address:**
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- FIAT (Sent by email to grants@web3.foundation on 09/08/2024, 16:07 UTC+1)
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- Polkadot: 14bBGQFAgKqdbGVDSWkm6dA8ZQzt9GxGSTALrD8SeafWW9gL
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- **[Level](https://github.com/w3f/Grants-Program/tree/master#level_slider-levels):** 2
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## Project Description :page_facing_up:
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### General Overview
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This project is a continuation of [this one](https://github.com/w3f/Grants-Program/pull/2250) and aims to build a decentralized threshold signing service leveraging the Olaf protocol. The service will operate off-chain, providing a secure and cost-effective alternative to on-chain threshold signature mechanisms within the Substrate/Kusama/Polkadot ecosystem.
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### Technical Details
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Each participant in the threshold signing group will run a dedicated node application. This application will include:
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- Core Threshold Signing Protocol: The service will use the Olaf threshold signature protocol, which was implemented in the previous grant.
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- Peer-to-peer networking via [`rust-libp2p`](https://github.com/libp2p/rust-libp2p) (Milestone 1):
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- Peer discovery: nodes will identify and discover each other through a Distributed Hash Table (DHT) that maps their Substrate/Polkadot/Kusama public addresses to their peer IDs.
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- Secure communication: [`libp2p_noise`](https://docs.rs/libp2p-noise/latest/libp2p_noise/) provides secure, authenticated channels between participating nodes for exchanging protocol messages.
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- Integration of the Olaf protocol with the underlying network (Milestone 2), managing:
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- Distributed Key Generation (DKG) and signing rounds.
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- Local storage of key shares and protocol state.
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- A Command Line Interface (Milestone 3) that allow users to:
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- Configure node settings (network addresses and peer IDs).
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- Configure protocol settings (threshold and number of participants).
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- Execute the Olaf protocol.
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### Ecosystem Fit
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This project is useful for any Substrate/Kusama/Polkadot based project that wants to use a secure off-chain decentralized threshold signature service that is cheaper than using the theshold signing funcionality of the network directly.
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### Related Projects
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The most similar project we found is [this](https://github.com/nulltea/tss-libp2p), but it is out of date and unmantained.
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### Team members
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- Rui Morais
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### Contact
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- **Contact Name:** Rui Morais
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- **Contact Email:** ruipedromorais11@gmail.com
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- **Github:** https://github.com/fiono11
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- **Linkedin:** https://www.linkedin.com/rui-morais
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### Team's experience
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- Obtained a PhD in Computer Science with the thesis *"Contributions to Permissionless Decentralized Networks for Digital Currencies Based on Delegated Proof of Stake"* (awaiting for the defense).
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- Published the following papers:
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- [Echidna: A New Consensus Algorithm for Efficient State Machine Replication](https://ieeexplore.ieee.org/document/10338927) (IEEE BCCA 2023)
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- [Nero: A Deterministic Leaderless Consensus Algorithm for DAG-Based Cryptocurrencies](https://www.mdpi.com/1999-4893/16/1/38) (Algorithms 2022)
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- [A tool for implementing privacy in Nano](https://ieeexplore.ieee.org/document/9126023) (IEEE DAPPS 2020)
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- [Adamastor: a New Low Latency and Scalable Decentralized Anonymous Payment System](https://arxiv.org/abs/2011.14159) (Arxiv)
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- Has graduated the PBA Hong Kong cohort.
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## Development Roadmap :nut_and_bolt:
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### Overview
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- **Total Estimated Duration:** 3 months
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- **Full-Time Equivalent (FTE):** 1 FTE
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- **Total Costs:** 30,000 USD
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- **DOT %:** 50%
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### Milestone 1 - Development of the Node
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- **Estimated duration:** 1 month
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- **FTE:** 1
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- **Costs:** 10,000 USD
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| Number | Deliverable | Specification |
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| -----: | ----------- | ------------- |
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| **0a.** | License | GPLv3 |
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| **0b.** | Documentation | We will provide **inline documentation** of the code. |
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| **0c.** | Testing and Testing Guide | Core functions will be fully covered by comprehensive unit tests to ensure functionality and robustness. In the guide, we will describe how to run these tests. |
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| **0d.** | Docker | We will provide a Dockerfile(s) that can be used to test all the functionality delivered with this milestone. |
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| **1.a** | Development of the Node | Two peers running on different machines are able to discover each other through their Substrate/Kusama/Polkadot address, establish a connection, and exchange messages. |
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### Milestone 2 - Integration of Olaf into the Node
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- **Estimated duration:** 1 month
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- **FTE:** 1
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- **Costs:** 10,000 USD
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| Number | Deliverable | Specification |
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| -----: | ----------- | ------------- |
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| **0a.** | License | GPLv3 |
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| **0b.** | Documentation | We will provide **inline documentation** of the code. |
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| **0c.** | Testing and Testing Guide | Core functions will be fully covered by comprehensive unit tests to ensure functionality and robustness. In the guide, we will describe how to run these tests. |
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| **0d.** | Docker | We will provide a Dockerfile(s) that can be used to test all the functionality delivered with this milestone. |
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| **1.a** | Integration of Olaf into the Node | Two peers on different machines exchange messages and successfully produce a threshold signature using the Olaf protocol with hardcoded protocol parameters. |
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### Milestone 3 - Decentralized Threshold Signature Service CLI
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- **Estimated duration:** 1 month
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- **FTE:** 1
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- **Costs:** 10,000 USD
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| Number | Deliverable | Specification |
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| -----: | ----------- | ------------- |
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| **0a.** | License | GPLv3 |
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| **0b.** | Documentation | We will provide both **inline documentation** of the code and a basic **tutorial** that explains how the service can be used. |
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| **0c.** | Testing and Testing Guide | Core functions will be fully covered by comprehensive unit tests to ensure functionality and robustness. In the guide, we will describe how to run these tests. |
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| **0d.** | Docker | We will provide a Dockerfile(s) that can be used to test all the functionality delivered with this milestone. |
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| **0e.** | Article | We will publish an **article**/workshop that explains how the service works under the hood and how it can be used from a user perspective. |
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| **1.a** | Decentralized Threshold Signature Service CLI | Two peers on different machines exchange messages and produce a threshold signature using the Olaf protocol with protocol parameters defined by user input from the CLI. |
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## Future Plans
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- Develop a webwallet for the user interface or integrate it in an established webwallet of the ecosystem, if there is interest.

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