Multisig, Hashes, and the Math Behind Trustless Record Keeping
Estimated Reading Time: 8 minutes
- Trustless record-keeping leverages cryptographic techniques like multisignatures and hashes to eliminate reliance on central authorities.
- Cryptographic hashes serve as unique, one-way digital fingerprints, guaranteeing data integrity and immediately revealing any tampering.
- Multisignature (multisig) technology enhances security by requiring multiple private keys (M-of-N configuration) to authorize actions, preventing single points of failure.
- The core mechanics involve an intricate dance of hashing, partial signatures, and shared public keys to maintain eventual state consistency across distributed networks.
- These principles are foundational for applications ranging from multisig cryptocurrency wallets to secure supply chain management and decentralized identity systems.
- The Cryptographic Pillars: Hashes and Multisignatures
- The Mechanics of Trust: Inside Trustless Record Keeping
- Real-World Applications of Trustless Record Keeping
- Conclusion
- FAQ: Frequently Asked Questions
In an increasingly digital world, the need for secure, verifiable, and truly trustworthy record-keeping has never been more critical. Traditional systems often rely on central authorities, introducing points of failure and requiring users to place their trust in a single entity. Enter the realm of trustless record keeping, a paradigm shift powered by ingenious cryptographic techniques like multisignatures (multisig) and cryptographic hashes. These aren’t just buzzwords; they represent a fundamental mathematical approach to ensuring data integrity and agreement without the need for intermediaries.
At its core, trustless record keeping leverages the power of advanced mathematics and cryptography to create systems where data cannot be tampered with and transactions can be verified by anyone, at any time. This article will delve into how these mechanisms work, exploring the intricate details that build a foundation of unwavering digital trust.
The Cryptographic Pillars: Hashes and Multisignatures
Before we dive into the complex processes, let’s establish a clear understanding of the two primary components: hashes and multisignatures.
Cryptographic Hashes: The Digital Fingerprint
A cryptographic hash function takes an input (any data, regardless of size) and produces a fixed-size string of characters, known as a hash value or message digest. This process is one-way, meaning you cannot easily reconstruct the original data from its hash. Crucially, even a tiny change in the input data will result in a drastically different hash value. This property makes hashes invaluable for verifying data integrity; if a record’s hash matches a previously stored hash, you can be confident the record hasn’t been altered.
Multisignatures (Multisig): Shared Control, Enhanced Security
Multisignature technology requires multiple private keys to authorize a transaction or validate a record. Unlike a single-signature scheme where one key holder has sole control, multisig typically uses an M-of-N configuration (e.g., 2-of-3, 3-of-5), meaning a minimum number (M) of N total key holders must agree to sign off on an action. This distributed control significantly enhances security, preventing a single point of failure or compromise. It’s like needing multiple keys to open a vault, rather than just one.
The Mechanics of Trust: Inside Trustless Record Keeping
So, how do hashes and multisig work together to build these trustless systems? It’s in the careful orchestration of record creation, validation, and state management across a distributed network. The following detailed breakdown, from a technical paper on trustless record-keeping, illustrates the precise algorithmic steps involved in appending records and maintaining consistency across nodes.
Table of Links
Abstract and 1. Introduction
System modelInitial node state
Append process
4.1 Local append
4.2 Append from another node
4.3 Record validation
4.4 State consistencyReplication process
Proof of correctness
M-of-N connections
Extensions and optimizations
References
4. Append process
4.1 Local append
The append process looks like that:
- Each new record should have key, value and version fields
- On append, the algorithm should create hash of record: ℎ𝑎𝑠ℎ = 𝑠ℎ𝑎256(𝑘𝑒𝑦, 𝑣𝑎𝑙𝑢𝑒, 𝑣𝑒𝑟𝑠𝑖𝑜𝑛). This hash brings uniqueness to the record
- Then algorithm should create partial signature as follow: partialSignature = (privateKey ∗ hash)𝑚𝑜𝑑 𝑁, where 𝑁 is curve parameter.
- Then algorithm add timestamp and timestamp index to the record. The timestamp – is a timestamp when record is created. The timestamp index is used when concurrency is possible, and two or more records can be created at the same time. In case this happens, all records with the same time have their own index (like 0, 1, 2).
- Then this record, alongside with hash and signature can be stored locally (for instance in database)
- This record is called intermediate
4.2 Append from another node
When one node receives new records from another (for instance node A obtained records from node B) during replication process, the append rules vary:
- The algorithm should validate the record
- Then algorithm should check, do this node already has this record (it can be done by finding the record by hash).
- 2.1)If record exist then:
- 2.1.1) In case received record is multisig and local record is intermediate – then algorithm should replace local intermediate record with received multisig and update the root.
- 2.1.2) In case local and received records are multisig, then the highest multisig is chosen (the algorithm compares 2 signatures by value) and stored in local record.
- 2.1.3) In case local record is multisig and received one is intermediate – then algorithm ignore this record (i.e. doesn’t apply) 2.1.4) In case local and received records are intermediate – then algorithm just take signatures from received record (which are not present on local record) and append them to local record.
- 2.2)if record doesn’t exist:
- 2.2.1) then algorithm should sign the hash of the received record (like was in local append described above), add it to this record and store
- Then the algorithm should check if there are enough signatures for multisig (this number is defined by quorum size).
- 3.1) if yes then:
- 3.1.1) algorithm build multisig: 𝑠𝑖𝑔𝑛𝑎𝑡𝑢𝑟𝑒 = ∑ 𝑝𝑎𝑟𝑡𝑖𝑎𝑙𝑆𝑖𝑔𝑛𝑎𝑡𝑢𝑟𝑒 𝑖𝑚𝑜𝑑 𝑁
- 3.1.2) algorithm build shared public key: 𝑠ℎ𝑎𝑟𝑒𝑑𝑃𝑢𝑏𝑙𝑖𝑐𝐾𝑒𝑦 = ∑ 𝑝𝑢𝑏𝑙𝑖𝑐𝐾𝑒𝑦𝑖 ∗ ℎ𝑎𝑠ℎ
- 3.1.3) algorithm replace intermediate signatures with multisig and sharedPublicKey
- 3.1.4) algorithm save the record and update the root.
4.3 Record validation
The validation process works as follows:
- First signatures are validated: in case of intermediate signatures
- 1.1) If signatures are intermediate, then for each intermediate signature the algorithm validate that: 𝑝𝑢𝑏𝑙𝑖𝑐𝐾𝑒𝑦𝑖 ∗ ℎ𝑎𝑠ℎ = 𝑠𝑖𝑔𝑛𝑎𝑡𝑢𝑟𝑒 ∗ 𝐺, where G – is a curve parameter (SECP256K1)
- 1.2)If signature is multisig, then
- 1.2.1) sharedPublicKey is reconstructed from involved public keys in signature process (the public keys with signatures are stored in record) and compared against received sharedPublicKey. If it’s not equal – then validation is not passed
- 1.2.2) then multisignature is validated as: 𝑚𝑢𝑙𝑡𝑖𝑆𝑖𝑔𝑛𝑎𝑡𝑢𝑟𝑒 ∗ 𝐺 = 𝑠ℎ𝑎𝑟𝑒𝑑𝑃𝑢𝑏𝑙𝑖𝑐𝐾𝑒𝑦
4.4 State consistency
To make sure, that all nodes have the same sets of records, the root has been introduced. The root is represented as sum of hashes of confirmed records (records with multisig): 𝑟𝑜𝑜𝑡 = ∑ ℎ𝑎𝑠ℎ 𝑖 𝑚𝑜𝑑 𝑛, where 𝑛 is a curve parameter. The following formula allows to build the root without order, so technically the append order of hashes doesn’t make any sense in this case. Also, keep in mind, as algorithm has eventual consistency (without rollback option) – we can’t guarantee any ordering.Also, to make root update quick, the algorithm stores the root on record level:
- On multisig record insert, the algorithm updates the root by addition of previous root to record’s hash: 𝑟𝑜𝑜𝑡 = (𝑟𝑜𝑜𝑡𝑝𝑟𝑒𝑣 + ℎ𝑎𝑠ℎ) 𝑚𝑜𝑑 𝑛
- Then this root hash is appended to the record (I call it stateHash)
- During next append of another new record, there is no need to recalculate the hash root of all records, but we sort confirmed (multisig) records in DESC order by timestamp and timestamp index, and take stateHash from the first record (which is the most recent one)
This approach is also useful for traceability and validation purpose, as all state can be replayed up to any point of history and calculated hash root can be compared with stateHash.
Author:
(1) Egor Zuev (zyev.egor@gmail.com)This paper is available on arxiv under CC0 1.0 UNIVERSAL license.
This detailed process highlights several critical aspects. Each record is uniquely identified by its cryptographic hash. Partial signatures from individual nodes contribute to a final multisignature, which is then validated using shared public keys derived from the involved parties. The “root,” a sum of hashes of confirmed records, acts as a dynamic integrity check, ensuring that all participating nodes eventually arrive at the same consistent state, even without strict ordering. This intricate dance of hashing, signing, and validating forms the bedrock of a truly trustless system where mathematical proof replaces the need for human or institutional trust.
Real-World Applications of Trustless Record Keeping
The principles outlined above aren’t just theoretical; they underpin some of the most innovative technologies shaping our future.
Example: Multisig Wallets in Cryptocurrency
Consider a cryptocurrency wallet that uses 2-of-3 multisig. This means two out of three private keys are needed to authorize a transaction. This setup can be used for corporate funds (requiring approval from two directors), shared family assets, or enhanced personal security (e.g., one key on a hardware wallet, one on a mobile device, and one with a trusted custodian). If one key is lost or compromised, the funds remain secure because a single party cannot unilaterally move them. Each signature contributes to the “multisig” as described in the append process, validating the transaction across the network.
Beyond cryptocurrencies, these principles are vital for supply chain transparency, ensuring each step of a product’s journey is recorded and immutable. They are also crucial for decentralized identity management, secure voting systems, and any scenario demanding high integrity and distributed control over data.
Actionable Steps to Embrace Trustless Systems:
- Educate Yourself on Cryptographic Primitives: Understand the basics of hashing (e.g., SHA256), public-key cryptography, and digital signatures. This foundational knowledge is key to appreciating the security of trustless systems.
- Explore Distributed Ledger Technologies (DLTs): Research platforms like blockchain that inherently leverage these concepts. Experiment with open-source projects or developer tools to see these mechanisms in action.
- Consider Multisig for Critical Digital Assets: If you manage significant digital assets, explore implementing multisignature solutions. This can drastically reduce the risk of single points of failure and enhance overall security posture.
Conclusion
The journey from traditional, trust-based record keeping to trustless systems is a testament to the power of mathematics and cryptographic innovation. Multisig and hashes, working in concert, provide an unprecedented level of security, integrity, and transparency in digital interactions. They allow us to build systems that operate on verifiable facts rather than assumed reliability, paving the way for a more robust and equitable digital future. As we continue to digitize more aspects of our lives, the principles behind trustless record keeping will only grow in importance, forming the invisible yet unbreakable bonds of our digital world.
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FAQ: Frequently Asked Questions
What is trustless record keeping?
Trustless record keeping refers to systems where data integrity and transactions can be verified without relying on a central authority or trusted intermediary. It uses cryptographic techniques like hashes and multisignatures to ensure that records cannot be tampered with and are verifiable by anyone.
How do cryptographic hashes ensure data integrity?
Cryptographic hash functions generate a unique, fixed-size “digital fingerprint” for any input data. Even a minor change to the original data will produce a drastically different hash. By comparing the current hash of a record to a previously recorded hash, one can instantly determine if the data has been altered, thus ensuring its integrity.
What is multisignature technology, and why is it important?
Multisignature (multisig) technology requires multiple private keys to authorize an action or validate a record, typically in an M-of-N configuration (e.g., 2 out of 3 keys). It’s important because it eliminates single points of failure, enhances security, and enables shared control over digital assets, making it much harder for a single individual or compromised key to unilaterally affect an outcome.
Can you give a real-world example of multisig?
A common real-world example is a multisig cryptocurrency wallet. For instance, a 2-of-3 multisig wallet for corporate funds might require two out of three directors to sign off on any transaction. This prevents any single director from moving funds independently and adds a layer of security, as two keys would need to be compromised to access the assets.
What is the “root” in trustless record keeping?
In the context of the detailed append process described, the “root” is a dynamic integrity check represented as the sum of hashes of confirmed records. It ensures that all participating nodes eventually arrive at the same consistent set of records, even without strict ordering. It acts as a concise summary of the entire confirmed record history, facilitating efficient state consistency checks.
