KeyShard

Centralized key management poses a serious risk to the cryptocurrency industry. Frequently, the private key used to transfer enormous sums of money is held by just one person. Because of this, hackers have an allure because it just takes one point of compromise to cause a disastrous loss.

FROST and other DKG protocols provide a workaround. The secure severless compute layer of Fluence, which guarantees no secret leaks, is leveraged by KeyShard, a DKG application based on the Fluence network, to address this difficulty. KeyShard uses FROST to generate threshold keys so that no participant ever knows the whole secret. High-value crypto transaction security is greatly increased as a result of the distribution of trust and the removal of the centralized attack vector.

Usage

Flexibility: The FROST protocol allows for optimization based on network conditions by providing two or single communication rounds with preprocessing. Fluence scales effectively to handle an increasing number of users. Advantages for DAOs: DAOs may restrict access to sensitive resources and safely handle keys for a variety of governance tasks, such as multi-signature wallets. This strategy goes beyond DAOs. KeyShard is applicable to a number of scenarios that call for distributed and secure key generation, including secure communications, safe multi-party computation, secure collaboration platforms, secure bootstrapping for dApps, and secure key sharing for wallets and vaults.

KeyShard, built on the foundation of FROST DKG and Fluence, empowers secure and scalable distributed key generation for various applications, particularly within DAOs, fostering trust, transparency, and resilience in their governance processes.

KeyShard tackles a critical issue in cryptocurrency wallets and vaults: single points of failure from private keys. It leverages FROST DKG on the Fluence network to distribute key generation. Participants collaboratively create a secret key split into shares. No one holds the entire key, and a threshold of shares is needed for access. This eliminates a central point of attack and fosters secure, decentralized management of digital assets.

All the services were written in Rust using the marine-rs-sdk. A lot of cryptographic crates were tried and used notably the following utilizes libraries for cryptographic operations including ark_bls12_381 for BLS12-381 curve functionalities, ark_ff for finite fields operations, blake2 for hashing, and secret_sharing_and_dkg for distributed key generation and secret sharing protocols.The gateway was the default fastify server which is used by the fluence cli and the dummy frontend was react and vite.