Managing multiple blockchain accounts is a complex task for users. Each blockchain typically requires its own wallet (e.g., Metamask for Ethereum, Keplr for Cosmos, Phantom for Solana, and so forth). Transferring assets between these blockchains is often complicated, time-consuming, and costly, hindering widespread adoption and making the DeFi experience frustrating.

 

The Solution – Shido Chain Abstraction

 

Shido chain abstraction technology addresses this issue by allowing you to control multiple accounts on different blockchains through a single main Shido account. This is achieved using additive key derivation, secured by a network of Multi-Party Computation (MPC) nodes. Shido also simplifies gas fee management, allowing fees to be paid using a single token across various blockchains.

 

Key Technical Features and Components

 

1. Chain Signatures

 

 – Account Aggregation: Manage multiple sub-accounts on different blockchains from a single main Shido account. 

 – Additive Key Derivation: Generate different blockchain addresses from a single account using specific derivation paths.

 

2. Derivation Paths

 

 – Address Generation: Unique addresses for different blockchains are generated using specific derivation paths. 

 – Path Specification: These paths map your main account to different blockchain addresses.

 

3. Multichain Smart Contract

 

 – Signature Requests: Request transaction signatures across different blockchains using a simple method.

 – Transaction Handling: The smart contract processes transaction requests and their derivation paths to complete transactions.

 

4. Multi-Party Computation (MPC) Service

 

 – Distributed Signing: Independent computers collaborate to create secure signature shares without exposing private keys.

 – Secure Computation: Ensures safe transaction signing by combining signatures from multiple nodes.

 

5. Multichain Gas Relayer

 

 – Gas Abstraction: Pay gas fees with a single token, handled by the gas relayer across different blockchains. 

 – Transaction Efficiency: Optimizes gas fee management and vastly reduces cross-chain transaction costs.  

 

6. Multichain Relayer Server

 

 – Transaction Relay: Communicates with different blockchains to send both pre-signed funding transactions and actual transactions.

 – Decentralization Goal: Future development plans include making this available as a client-side library for more decentralized operations.

 

In Practice

 

Shido chain abstraction technology enables you to manage accounts and assets on various blockchain platforms through three main steps:

 

1. Deriving the Foreign Address

 

Chain Signatures use derivation paths to represent accounts on the target blockchain. The external address to be controlled is deterministically derived from:

 – The X-Chain address 

 – Aderivation path 

 – The MPC service’s public key

 

Example (Ethereum):

 

If you have an X-Chain account, and you use a specific derivation path such as eth1 or eth2, it will create unique addresses for each respective blockchain. For instance:

 – X-chain account with path eth1 might generate the address 0x123…abc on Ethereum. 

 – X-chain account with path eth2 might generate a different address like 0x456…def on Ethereum.

 

This process involves complex hashing and encoding steps to ensure the correct address is generated for the target blockchain.

 

2. Creating the Transaction

 

The transaction or message to be signed is constructed based on the target blockchain’s requirements. This includes creating the transaction data (sender, receiver, amount, etc.) and generating the hash of this data for signing.

 

Example (Ethereum):

 

 – Retrieve the nonce (transaction count) and current gas price. 

 – Construct the transaction details such as the receiver’s address and the amount of Ether to be sent. 

 – Generate the hash of this transaction data to be signed. 

3. Requesting the Signature

 

Once the transaction is ready, a signature request is made by calling the sign method on the MPC-smart contract, including  :

 – The transaction payload (the hashed transaction data). 

 – The derivation path for the account used to sign the transaction.

 

Example (Ethereum):

 – Call the sign method on the MPC contract, providing the transaction payload and derivation path. 

 – Wait for the MPC service to process the request and generate the signature.

 

4. Reconstructing the Signature

 

The MPC contract returns the necessary elements to reconstruct the signature. These elements (r, s, and v values) are combined to form a valid signature for the transaction.

 

Example (Ethereum):

 

 – Use the returned r, s, and v values to reconstruct the full signature.  

 – Verify the reconstructed signature to ensure it is valid.

 

5. Relaying the Signed Transaction

 After reconstructing the signature, the signed transaction is sent to the target blockchain for execution.

 

Example (Ethereum):

 

 -Relay the signed transaction to the Ethereum network for it to be processed and confirmed.

 

Proof-of-Concept (PoC) Implementation

 

Shido is currently developing and deploying the following key components as part of the Proof-of-Concept (PoC):

 

1. Client Application:

 

The client application derives foreign blockchain addresses based on the user’s private key and a specified derivation path. The client also generates transaction payloads and interacts with the MPC-smart contract.

 

2. Smart Contracts with Signing Functionalities:

 

Smart contracts deployed on the Shido Network will handle signing requests, manage derivation paths, and emit events when a signing request is made. These contracts are essential for initiating the signature generation process.

 

3. Multi-Party Computation (MPC) Service:

 

Our MPC-service consists of several independent nodes working together to securely generate signature shares. These nodes will monitor the smart contract for signing events, collaborate to produce a secure signature without exposing any private keys, and return the generated signature to the smart contract. This distributed signing approach ensures enhanced security and integrity..

 

4. Relayer Service:

 

The relayer service transmits the signed transaction to the respective blockchain. After the MPC service generates and returns the signature, the relayer ensures the transaction is executed correctly on the target blockchain. 

 

By integrating these components, the PoC will demonstrate the ability to securely and efficiently manage cross-chain transactions using the Shido chain abstraction technology.