Entropy - Trustless Decentralized Asset Custody - Tux Pacific

the founder and ceo of entropy um we're going to be starting and discussing what decentralized asset custody is so i before i get into it i just want to ask everybody who here already uses a crypto custodian or a multi-sig or like a hardware wallet of some kind just raise your hand if you do cool cool anybody like coordinate with many different people to sign transactions maybe use fire blocks or something for this keep them up anybody else okay cool any i see some down participants i see who the real dow participants are all right um so i'll get into it what is an asset custodian uh so generally an asset custodian is a trusted individual or an organization um they hold assets on behalf of another individual organization they usually store crypto assets in cold storage mechanisms or they leverage you know advanced threshold cryptography to essentially like just keep this fund safe and require coordination between a bunch of different parties um additionally and like a lot of these uh existing products like firebox allow users to actually engage with d5 and wider crypto ecosystems uh like or through staking but this is a bit more technical and not everybody does it um generally though the most important thing to take from this is that usually the the users of these asset custodians are uh high net worth individuals slash large institutions so we're talking about like hundreds of millions of dollars if not billions of dollars custody on these things so these protocols and platforms generally only work for people who are you know custody such large amounts of money but they get such novel security features that are extremely important for generally the entire ecosystem so up until now these things really haven't been attainable for most uh consumers um and that and also these people are not exactly crypto native entities like dows cannot generally enter crypto custodians there's no way for a dow to say just join with coinbase custody for example so introducing decentralized asset custodians which is what entropy is oh uh so a decentralized asset custodian in contrast to this is a trustless protocol for securely storing crypto assets so notice that it's trustless compared to that trustless trusted one um and we can think of this as a crypto native analog for cold storage mechanisms specifically we're building on top of threshold signature algorithms already so now we can use these advanced cryptography to actually customize these funds in a trustless manner built on a decentralized network um i said they're transparent decentralized and community-owned uh entities these are not like you know owned by the shareholders slash investors of these large companies like coinbase custody or fire blocks for example these are built upon you know crypto native primitives like dowels um so basically like a general way you can think about how uh something like entropy is pioneering the spaces what amms did decentralized exchanges decentralized asset custodians will do to centralized custodians so entropy please clap [Music] [Applause] um so entropy is the first ever trust entirely trustless decentralized custodian protocol um like a really simple way you can think of it is essentially it's like multi-factor authentication for your private keys except decentralized so it's you can like think of it as like google authenticator except built on a decentralized network for your private keys um it's kind of like it sounds cheesy to say but it is an entirely new paradigm for blockchain interaction it actually standardizes the secure user experience for how you interact with not just ethereum but for any blockchain um it's built on top of what we use a t of t threshold signature algorithms which i'll get into here in a little bit later and because of this if the network is ever hacked there is no risk to funds this is why it's entirely trustless it works again it works on pretty much any blockchain the prime reason being because they all share the same cryptography more or less and if it doesn't share well we can like add in something to make it work so basically what entropy is going to be is a simple signing api to integrate in your wallet your adap or your dow or whatever your product is and i'll get more into that in a bit so what does it do we can do really awesome stuff like address whitelisting as an example spending limits you know you can say hey look i want to spend only three eth per week and if i try to sign a transaction that exceeds that spending limit it's not going to sign it um time lock transactions very similar to like a cold storage mechanism where you say hey i want to spend whenever i want to sign a transaction from this wallet it's going to take a week for that transaction to go through so you can say have like a super cold wallet that just sits elsewhere that is still accessible but it still takes a long time for it to happen and likewise if it would ever get compromised you can see that happening and stop that from happening and like revoke access to it if you need um again multi-factor authentication so you could have a share for example if we were to integrate into meta mask you could see someone try to sign a transaction in metamask and then you get a pop-up on your phone so then you pull out your phone you'll get a little pop-up and it says exactly what you're trying to sign able to review what the transaction is and you can either approve or do or deny it and so that's you know just basic decentralized mfa more or less on this we also want to build a way to do arbitrary programmable rules so what we want to use is basically like wasm you deploy a wasm blob to the entropy network and based on that input based on some inputs from transactions you're able to our network is able to execute those rules and if the rules are valid then it signs a transaction if it's not it's denied so there's a whole programmable method for everyone to actually use this also dow controlled signing rules and like i said works natively on pretty much any blockchain and again all of this is decentralized i'm not kidding about it it's all on a decentralized network which is really cool so as like a little use case study staking providers you know so right now we have folks like uh you