DGT DOCS
  • 1. INTRODUCTION
    • 1.1 Executive Summary
    • 1.2 Why DGT
    • 1.3 Distributed Ledgers Technology
      • 1.3.1 Decentralization approach
      • 1.3.2 Consensus Mechanism
      • 1.3.3 Transactions
      • 1.3.4 Layered Blockchain Architecture
      • 1.3.5 Tokenomics
      • 1.3.6 Web 3 Paradigm
      • 1.3.7 Common Myths about Blockchain
    • 1.4 The DGT Overview
      • 1.4.1 Platform Approach
      • 1.4.2 DGT Functional Architecture
      • 1.4.3 Technology Roadmap
    • 1.5 How to create a Solution with DGT Networks
    • 1.6 Acknowledgments
  • 2. REAL WORLD APPLICATIONS
    • 2.1 Case-Based Approach
      • 2.1.1 DGT Mission
      • 2.1.2 The Methodology
      • 2.1.3 Case Selection
    • 2.2 Supply Chain and Vertical Integration
      • 2.2.1 Logistics Solution for Spare Parts Delivery
      • 2.2.2 DGT Based Solution for Coffee Chain Products
    • 2.3 Innovative Financial Services
      • 2.3.1 Crowdfunding Platform
      • 2.3.2 Real World Assets Tokenization
      • 2.3.3 Virtual Neobank over DGT Network
      • 2.3.4 DGT based NFT Marketplace
    • 2.4 Decentralized Green Energy Market
      • 2.4.1 Peer To Peer Energy Trading
      • 2.4.2 DGT based Carbon Offset Trading
    • 2.5 B2B2C Ecosystems and Horizontal Integration
      • 2.5.1 KYC and User Scoring
      • 2.5.2 Decentralized Marketing Attribution
      • 2.5.3 Case Decentralized Publishing Platform
      • 2.5.4 Value Ecosystem
    • 2.6 More Cases
  • 3. DGT ARCHITECTURE
    • 3.1 Scalable Architecture Design
      • 3.1.1 High Level Architecture
      • 3.1.2 DGT Approach
      • 3.1.3 Unique contribution
      • 3.1.4 Component Based Architecture
    • 3.2 Performance Metrics
    • 3.3 Network Architecture
      • 3.3.1 Nework Architecture in General
      • 3.3.2 Network Identification
      • 3.3.3 H-Net Architecture
      • 3.3.4 Transport Level
      • 3.3.5 Segments
      • 3.3.6 Static and Dynamic Topologies
      • 3.3.7 Cluster Formation
      • 3.3.8 Node Networking
      • 3.3.9 Permalinks Control Protocol
    • 3.4 Fault-Tolerant Architecture
      • 3.4.1 Introduction to Fault Tolerance
      • 3.4.2 F-BFT: The Hierarchical Consensus Mechanism
      • 3.4.3 Cluster Based Algorithms
      • 3.4.4 Arbitrator Security Scheme
      • 3.4.5 Heartbeat Protocol
      • 3.4.6 Oracles and Notaries
      • 3.4.7 DID & KYC
    • 3.5 Transactions and Performance
      • 3.5.1 Transaction Basics
      • 3.5.2 Transaction Processing
      • 3.5.3 Transaction and block signing
      • 3.5.4 Transaction Families
      • 3.5.5 Transaction Receipts
      • 3.5.6 Smart Transactions
      • 3.5.7 Private Transactions
      • 3.5.8 Multi signature
    • 3.6 Data-Centric Model
      • 3.6.1 Data layer overview
      • 3.6.2 Global State
      • 3.6.3 Genesis Record
      • 3.6.4 Sharding
      • 3.6.5 DAG Synchronization
    • 3.7 Cryptography and Security
      • 3.7.1 Security Architecture Approach
      • 3.7.2 Base Cryptography
      • 3.7.3 Permission Design
      • 3.7.4 Key Management
      • 3.7.5 Encryption and Decryption
      • 3.7.6 Secure Multi Party Computation
      • 3.7.7 Cryptographic Agility
      • DGTTECH_3.8.4 Gateway Nodes
    • 3.8 Interoperability
      • 3.8.1 Interoperability Approach
      • 3.8.2 Relay Chain Pattern
      • 3.8.3 Virtual Machine Compatibility
      • 3.8.4 Gateway Nodes
      • 3.8.5 Token Bridge
    • 3.9 DGT API and Consumer Apps
      • 3.9.1 Presentation Layer
      • 3.9.2 Application Architecture
    • 3.10 Technology Stack
    • REFERENCES
  • 4. TOKENIZATION AND PROCESSING
    • 4.1 Introduction to Tokenization
      • 4.1.1 DGT Universe
      • 4.1.2 Driving Digital Transformation with Tokens
      • 4.1.3 Real-World Tokenization
      • 4.1.4 Key Concepts and Definitions
    • 4.2 Foundations of Tokenization
      • 4.2.1 Definition and Evolution of Tokenization
      • 4.2.2 Tokenization in the Blockchain/DLT Space
      • 4.2.3 The Tokenization Process
      • 4.2.4 Tokenization on the DGT Platform
      • 4.2.5 Regulatory and Legal Aspects of Tokenization
      • 4.2.6 Typical Blockchain-Based Business Models
    • 4.3 The DEC Transaction Family
      • 4.3.1 DEC Transaction Family Overview
      • 4.3.2 DEC Token Features
      • 4.3.3 DEC Token Protocol
      • 4.3.4 DEC Account Design
      • 4.3.5 DEC Transaction Family Flow
      • 4.3.6 DEC Commands
      • 4.3.7 DEC Processing
      • 4.3.8 Payment Gateways
    • 4.4 Understanding Secondary Tokens
      • 4.4.1 The different types of tokens supported by DGT
      • 4.4.2 How secondary tokens are produced
  • 5. EXPLORING TOKENOMICS
    • 5.1 Introduction
      • 5.1.1 What does tokenomics mean?
      • 5.1.2 Goals of Building the Model for DGT Network
      • 5.1.3 Tokens vs Digital Money
      • 5.1.4 The Phenomenon of Cryptocurrency
      • 5.1.5 Basic Principles of Tokenomics
      • 5.1.6 AB2023 Model
    • 5.2 Node & User Growth
      • 5.2.1 Node Ecosystem
      • 5.2.2 User Growth and Retention Modeling
    • 5.3 Transactions
      • 5.3.1 Transaction Amount Components
      • 5.3.2 Shaping the Transaction Profile: A Three-pronged Approach
      • 5.3.3 Calculation of Transaction Number
    • 5.4 Network Performance Simulation
      • 5.4.1 Endogenous Model
      • 5.4.2 Network Entropy
      • 5.4.3 Network Utility
    • 5.5 Token Supply Model
      • 5.5.1 Introduction to Supply and Demand Dynamics
      • 5.5.2 Token distribution
      • 5.5.3 Supply Protocol
      • 5.5.4 Token Balance and Cumulative Supply
    • 5.6 Token Demand Model
      • 5.6.1 Node-Base Demand
      • 5.6.2 Transaction-Based Token Demand
      • 5.6.3 Staking Part Modeling
      • 5.6.4 Total Demand
    • 5.7 Token Price Simulation
      • 5.7.1 Nelson-Siegel-Svensson model
      • 5.7.2 The Price Model
    • 5.8 Decentralization Measurement
      • 5.8.1 Active Node Index
      • 5.8.2 Node Diversity in Hybrid Networks
      • 5.8.3 Token distribution
      • 5.8.4 Integral Calculation of Decentralization Metric
    • 5.9 Aggregated Metrics
      • 5.9.1 Transaction Throughput: Evaluating Network Performance and Scalability
      • 5.9.2 Market Capitalization: A Dimension of Valuation in Cryptocurrency
      • 5.9.3 Total Value Locked (TVL): A Spotlight on Network Engagement and Trust
  • 6. ADMINISTRATOR GUIDE
    • 6.1 Introduction
      • 6.1.1 Administrator Role
      • 6.1.2 Platform sourcing
      • 6.1.3 DGT Virtualization
      • 6.1.4 Using Pre-Built Virtual Machine Images
      • 6.1.5 Server Preparation
      • 6.1.6 OS Setup and initialization
    • 6.2 DGT CORE: Single Node Setup
      • 6.2.1 Launch the First DGT Node
      • 6.2.2 Dashboard setup
      • 6.2.3 Nodes Port Configuration
      • 6.2.4 Single Node Check
    • 6.3 DGT CORE: Setup Private/Public Network
      • 6.3.1 Network launch preparation
      • 6.3.2 A Virtual Cluster
      • 6.3.3 A Physical Network
      • 6.3.4 Attach node to Existing Network
    • 6.4 DGT Dashboard
    • 6.5 DGT CLI and base transaction families
    • 6.6 GARANASKA: Financial Processing
      • 6.6.1 Overview of DGT’s financial subsystem
      • 6.6.2 DEC emission
      • 6.6.3 Consortium account
      • 6.6.4 User accounts
      • 6.6.5 Payments
    • 6.7 Adjust DGT settings
      • 6.7.1 DGT Topology
      • 6.7.2 Manage local settings
    • 6.8 DGT Maintenance
      • 6.8.1 Stopping and Restarting the Platform
      • 6.8.2 Backing up Databases
      • 6.8.3 Network Performance
      • 6.8.4 Log & Monitoring
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  1. 3. DGT ARCHITECTURE
  2. 3.7 Cryptography and Security

3.7.2 Base Cryptography

Previous3.7.1 Security Architecture ApproachNext3.7.3 Permission Design

Last updated 1 year ago

Cryptographic algorithms play an important role in ensuring data integrity and protecting the system from various types of attacks. The basic cryptography used in DGT is built on standardized libraries, incorporating cryptographic primitives such as hashing, digital signatures, and data storage. It is essential to specify the cryptographic toolkit during network deployment to ensure consistency across all nodes and network clients.

Currently, DGT employs the ECDSA (Elliptic Curve Digital Signature Algorithm) family of cryptographic methods. In earlier versions, a Bitcoin-compatible library was utilized for the secp256k1 curve. However, since the Matagami version, DGT has transitioned to using OpenSSL. When deploying the DGT network, the appropriate library must be specified to ensure compatibility across all networks and clients. Presently, DGT supports the OpenSSL and Bitcoin (secp256k1) libraries. Signatures on the platform, including customer-signed transactions and packages, utilize the ECDSA secp256k1 curve.

Data exchanged between nodes and services within a node, such as the Validator, REST API, and Transaction Processor, are encrypted using CurveZMQ, which employs a 256-bit ECC (Elliptic Curve Cryptography) key with the elliptic Curve25519. This encryption mechanism helps ensure the confidentiality and security of the exchanged data.

Regarding the challenges of elliptic cryptography in the face of quantum attacks, elliptic curve algorithms, including ECDSA, are vulnerable to attacks by quantum computers. As a result, there is a prospective transition towards post-quantum cryptography, specifically lattice-based cryptography such as NTRU. The transition to NTRU cryptography may involve utilizing the WolfSSL library, which provides support for various cryptographic algorithms, including NTRU. This shift aims to enhance the resistance of DGT's cryptographic mechanisms against potential future quantum attacks.

In DGT, various cryptographic primitives are employed to ensure the security and integrity of the network. These primitives serve as the building blocks for cryptographic operations within the system. The basic cryptographic primitives used in DGT include:

  • Hash Functions: Hash functions are fundamental cryptographic primitives used to generate a fixed-size output (hash) from input data of any size. DGT utilizes hash functions, such as SHA-256 (Secure Hash Algorithm 256-bit) or SHA-512, for various purposes, including data integrity verification and creating unique identifiers for transactions and blocks.

  • Digital Signatures: Digital signatures are crucial for verifying the authenticity and integrity of data and ensuring non-repudiation. DGT utilizes digital signature schemes, such as ECDSA (Elliptic Curve Digital Signature Algorithm) with the secp256k1 curve, to generate and verify digital signatures. Digital signatures are employed in transaction validation, authentication, and proof of ownership.

  • Key Generation: Cryptographic key generation is essential for generating symmetric and asymmetric keys used for encryption, decryption, and digital signatures. DGT employs key generation algorithms to create cryptographic keys, such as ECC (Elliptic Curve Cryptography) keys based on elliptic curves like Curve25519, for secure communication and data protection.

  • Encryption/Decryption: Encryption is utilized in DGT to secure data transmission and protect sensitive information. Symmetric and asymmetric encryption algorithms, such as AES (Advanced Encryption Standard) and RSA (Rivest-Shamir-Adleman), may be used within the network to ensure confidentiality and prevent unauthorized access to data.

  • Secure Communication Protocols: DGT employs secure communication protocols to protect the exchange of data between nodes and services. These protocols, such as TLS (Transport Layer Security) or its predecessor SSL (Secure Sockets Layer), enable encrypted communication channels, preventing eavesdropping and ensuring the confidentiality and integrity of data transmitted over the network.

  • Random Number Generation: Randomness is crucial in cryptographic operations, including key generation and nonce generation. DGT utilizes secure random number generation techniques to ensure the unpredictability and cryptographic strength of generated values, preventing predictability and potential vulnerabilities.

Figure 47 Digital Signing Process