Coinbase Establishes Open Source Cryptography: Kryptology

American cryptocurrency exchange Coinbase announced the launch of Kryptology, an encryption library that focuses on building complex encryption technologies.

The Coinbase team stated that it hopes to make Kryptology the standard for a powerful and usable encryption library. The encryption library will provide developers with an audited and easy-to-use API toolbox.

Cryptography is the driving force of cryptographic innovation which can make cryptocurrency no longer a digital code that can be easily copied.

Cryptographers use the zero-knowledge technology in ZCash to create private transactions and ensure that personal data is protected.

The most recent advancement in cryptography is the Boneh-Lynn-Shacham or BLS signature. This signature is used to verify the sender’s information while verifying the transaction, for dual security transactions.

Another advanced algorithm worth mentioning is the Shamir secret sharing or SSS algorithm. SSS refers to the distribution of secret values among multiple participants (called shareholders), and all participants must work together to reconstruct the secret. Therefore, the algorithm is very suitable for storing private keys holding decentralized financial portals or locking large amounts of funds in DeFi, mining pools, and smart contracts.

Skale uses BLS to create summaries to increase scale and reduce on-chain storage, and Mina and ZCash use Halo 2 and the new elliptic curve design Pasta to improve crypto wallets.

Coinbase is also working to put recent encryption technology into production. zkSNARKS and encrypted accumulator, FROST, and threshold signature.

Image source: Shutterstock


Tagged : / / / / /

Coinbase launches open-source cryptography library Kryptology

On Monday, Coinbase, the fourth-largest cryptocurrency exchange globally by trading volume, announced the creation of a novel cryptographic library, Kryptology, as a compendium of tools for blockchain developers. These include secure, audited, and easy-to-use APIs, as well as a repository of common issues and lessons learned throughout the history of crypto.

Without cryptography, cryptocurrencies such as Bitcoin would be digital lines of code that anyone can copy/paste. It would be easily replicable and falsifiable, leading to significant issues such as currency double-spending. Recent advancements include Boneh–Lynn–Shacham, or BLS, signatures that senders cannot deny the validity of their transactions while ensuring their data is safely stored. Another recent adoption is the Shamir Secret Sharing, or SSS, algorithm. SSS divides a secret value among multiple participants, called shareholders, who must work then together to reconstruct the secret. The setup is ideal for storing private keys holding entrance to decentralized finance, or DeFi, pools, and smart contracts that lock a large sum of money.

Then, there are zero-knowledge proofs, which ensure that encrypted messages can be passed on and validated without revealing underlying personal data, making them ideal for use in complex DeFi applications. Finally, the design of new elliptic curves, such as Pasta could also potentially improve crypto wallets.

One leading area of cryptography innovation is among that of privacy coins, which can enable users to evade tracking by blockchain forensic firms and prevent outside participants from viewing their transaction details. Law enforcement has shunned such technology due to its ability to promote illicit activities.