KeyGuard

KeyGuard is the first decentralized key management (DKM) infrastructure built on the XRP Ledger. It enables dApps to efficiently and securely manage account signer keys in a decentralized manner.

Why

Developing decentralized applications on the XRP Ledger presents significant challenges in managing signer keys for dApps' XRPL accounts. Each dApp requires decentralized ownership and management of its XRPL accounts to ensure security and trustlessness. However, the lack of infrastructure for decentralized key management on the XRPL forces developers to create their own frameworks. With $240 million lost to private key compromises due to centralization and single points of failure, this increases vulnerability to exploits, such as the GateHub attack, where $23 million XRP was lost due to centralized key management. To address this, we developed KeyGuard, the first decentralized key management infrastructure for XRPL, enabling dApps to efficiently and securely manage account signer keys in a decentralized manner. KeyGuard uses a network of decentralized nodes that operate independently with private keys, generating digital signatures for a shared transaction. These signatures are combined into a multi-signature transaction and submitted to the XRPL for validation against the signer list and ledger rules.

Key Features

• Signer Key Management: Allows dApps to manage their XRPL account signer keys in a decentralized manner.
• Transaction Signing: Provides foundational features to sign XRPL transactions securely.
• NPL Round: Facilitates sub-consensus rounds on the P2P network for signature distribution and collection.

Images

Demo: https://youtu.be/8y31W2issvc

How it Works

(example of generating an account and singing a transaction)

• A network of decentralised nodes is generated (e.g. 5 nodes), each operating independently with its own private key.
• A funded account is generated using the XRPL faucet, which will be used as the dApp's XRPL account.
• accountSet transaction: The master key is disabled to ensure only the listed signer keys can authorize transactions.
• signerListSet transaction: The SignerList is updated to include the keys of all the nodes, giving each node the authority to participate in signing transactions.
• To create a transaction, each node in the network constructs the same transaction details (sender, destination, amount).
• The transaction data is hashed before signing to ensure each node signs the exact same transaction data.
• Each node uses its private key to generate a digital signature of the transaction hash.
• Each node broadcasts its signed transaction hash to all other participating nodes in the network.
• Nodes receive signatures from other nodes and store them until a sufficient number of valid signatures are met to meet the required quorum.
• Each node verifies the collected signatures using the private keys, ensuring the signatures are valid and untampered.
• The signatures are combined into a single multi-signature transaction. The combinefunction is used to create a transaction blob that includes all valid signatures
• The combined multi-signature transaction is submitted to a ripple node for validation. The XRPL validates the transaction against the signer list and other rules before including it in the ledger.

Technical

The core technology includes a decentralised key management module developed in JavaScript using XRPL.js and simulated nodes developed in Java with XRPL4J to manage signer lists and handle transactions. KeyGuard starts by generating a network of decentralised nodes, each operating independently with its own private key. This setup ensures that no single point of failure exists, distributing trust and security across the network. A funded account can then generated using the XRPL faucet to serve as the dApp's XRPL account.

To enhance security, an AccountSet transaction was employed to disable the master key of the XRPL account, ensuring that only the listed signer keys could authorise transactions. The SignerListSet transaction was then used to update the SignerList with the keys of all the nodes, allowing each node to participate in signing transactions, promoting a decentralised decision-making process.

Each node constructs the same transaction details, such as sender, destination, and amount. The transaction data is hashed before signing to ensure uniformity. Each node uses its private key to generate a digital signature of the transaction hash and broadcasts this signed transaction hash to all other participating nodes. Nodes receive signatures from other nodes and stores them until the required quorum of valid signatures is met. Each node verifies the collected signatures to ensure they are valid and untampered.

Valid signatures are then combined into a single multi-signature transaction using the combine function, creating a transaction blob that includes all signatures. This multi-signature transaction is submitted to a ripple node for validation. The XRP Ledger validates the transaction against the signer list and other rules before including it in the ledger, ensuring the integrity and security of the transaction process.

Contributing

KeyGuard is open-source and a community effort. Contributions are welcome to improve and expand the framework.

License

KeyGuard is released under the MIT License.