What Is Swingby (SWINGBY)?
The current blockchain ecosystem has evolved rapidly since Bitcoin’s creation in 2009, but it still faces two major issues scalability and cross-chain interoperability. Scalability in this context means the number of transactions per second that any particular blockchain network can handle before degrading in performance, and interoperability refers to the secure movement of assets from one blockchain onto another. Swingby Interoperability is of specific interest, as blockchains with different goals make trade-offs in for example decentralization versus performance to fulfill the needs of different use cases. The custodian functions as an escrow agent and acts as an administrator.
Swingby This paper focuses on interoperability, but the solution also has a positive impact on Bitcoin’s scalability. There are two main techniques that can move assets between different blockchains, which they explain briefly. The first is the use of a relay mechanism such as an atomic swap or hash and time locked contract, and the second is the use of a trusted custodian. Relay mechanisms often rely on external observers called oracles who monitor a source blockchain for specific transactions and “relay” the information onto another chain. Trusted custodians are specific trusted business intermediaries who control coins on one chain and issue new “depository receipts” for those coins on another chain.
Swingby Storage Key Points
|Circulating Supply||612,653,455.32 SWINGBY|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
What is a decentralized custodian?
Businesses that hold assets on behalf of other parties can be described as custodians. Custodians store their clients’ assets in addresses that they (the custodians) control by virtue of knowing the linked private key(s) to those addresses. But those custodians bear the risks of private key loss or theft, which in both cases lead to loss of control of their clients’ funds. So today, custodians typically store the majority of their clients’ assets in multi-signature addresses, and they store the controlling private keys offline.
Swingby Although this is more secure than having private keys stored on internet-connected devices, the trade off is that it is inconvenient, and creates operational complexities for parties acting as custodians. The industry has long needed a solution to the apparent trade off between security and convenience. A 2018 paper entitled Fast Multiparty Threshold ECDSA with Fast Trust less Setup by Rosario Gennaro and Steven Gold feder described the first threshold ECDSA signature scheme protocol that supports multiparty signatures with efficient, dealer less key generation.
What is TSS?
No trusted dealer is needed – the protocol is fully decentralized. The Threshold Signature Scheme (TSS) is a protocol where private keys, and therefore cryptocurrency addresses, can be created by multiple parties. A threshold number (ie a subset) of those parties can then follow the protocol to collaboratively produce valid signatures to sign crypto currency transactions, without the parties needing to share any secrets with each other.
While TSS coordinates between multiple parties to create digital signatures for crypto currency transactions, an advantage of Swingby is that it creates a single valid signature that accompanies a cryptocurrency transaction. This differs from multi-sig (and similar) script implementations in Bitcoin that require multiple signatures.
The first implementation of Swingby Skybridge will be to allow for the creation of BTC stable coins (which can be thought of as depository receipts for real Bitcoins) recorded on Binance Chain. Future iterations will allow for BTC tokens on other chains, and other cryptocurrencies on other chains. Ultimately Sky bridge will be able to be used to create depository receipts on any chain, without the need to trust a centralised custodian.
The Swingby Network
The Swingby Network is a permission less (ie, anyone can join by downloading and running the Swing node software), peer-to-peer (ie, all nodes are equal and there is no leader) network of nodes who run the Swing node software to communicate with one another. The network exists to create and operate decentralised custodians. TSS groups form on the network, which runs two main processes.
First, the keygen process which is the collaborative creation of a public key, from which custodial cryptocurrency addresses on both blockchains are derived. This is an initial set-up phase and is done once per “bridge” between two blockchains. Second, the transaction signing process which is the collaborative signing of cryptocurrency transactions for making payments from those custodial addresses.
Eligibility by staking
Each node’s eligibility is signaled by broadcasting a signed message over the Swing Network which includes a transaction hash from Binance Chain (this is known as the “Ping” message). The transaction hash is that of a transaction on Binance Chain that stakes at least the minimum amount of SBY for at least the minimum amount of time (72 hours in our first implementation). The broad casted message should include a signature of the staking address on Binance Chain as proof that the Swing node operator also controls the staking address on Binance Chain.
Swingby The TSS protocol is used to create, effectively, a single private key that is never known to any party or combination of parties. The public key related to that private key is known to all parties. That public key is then used to create an address on the source chain and on the destination chain, forming the bridge. In the case of your first implementation, custodial addresses would be derived for both Bitcoin and Binance Chain.