Account Based Solutions to Web3 UX | David Sneider Lit Protocol

okay Neptune stage well well there's a mixup so I will need to leave the MC to the moderator no problem hello everybody my name is David Snider I'm one of the co-founders at lit protocol not sure what happened with the mixup um and today let's see if we can get this up [Music] awesome today we're going to talk about account-based solutions to web 3ux and I'll Define that uh as we go so here's our agenda first I'll tell you about what's lit protocol then we'll talk about some of the current problems as it relates to logging in and signing up in web 3 today and then and talk about what does the open network solution look like and then yeah if there's any questions happy to take them so lip protocol is a decentralized key management network uh it combines two security Technologies one is called multi-party computation threshold secret schemes that is a method for taking a private key and dividing it up into a bunch of parts or shares that live across this distributed network uh this is live today as of 3 weeks ago after 3 years of research and development and then the second security level here is that all of the operations for that key share run inside of secure encrypted virtualization and so this is the security model of Defense in depth uh and that secure encrypted virtualization is a type of trusted execution environment you could think about it as a secure computer or a black box that the node operator can't get into and so with this two-tiered model that's how collusion is prevented and of course it's a key management Network so the two fundamental features of the network are signing things like signing a transaction which we'll talk about today in the context of users and wallets but the network also supports rules-based encryption for data marketplaces and Licensing and uh user own data and so how it works specifically is LD is a key and each of these nodes as I mentioned has these two security components dividing up the key running it in the te and then developers can articulate programs in JavaScript that dictate how this decentralized virtual key will sign and encrypt anything and as you can see there's a bunch of uh standard web2 style authentication methods that are are hooked up to this and so as uh distributed primitive uh that's relatively new and kind kind of a first of its kind we've seen just an explosion of application types everything that you see on this list uh there's one or more Venture back teams building these types of products using lit in some capacity and here are some of the some of the brands and if you want to talk about any of these use cases um after this talk I'll be around and at the end of the day dep despite how sophisticated and complex the tooling is what really matters is making the product easy to use so that's topic one what we've been doing at lit protocol and decentralized Key Management now let's talk a little bit about web 3ux so right now if you want to make the claim that you have one login for the entire internet which is kind of the dream of web 3 there's basically only one option that you have which is you have to know where your key material is likely in the context of self- custody using wallets like metamask or your Ledger uh then there's also an emerging market for wallet as a service providers that are selling a SAS module um for creating accounts and logging in uh there is I think a kind of a nefarious thing happening in that industry which is some of those vendors are claiming we have Universal portability but if you read the fine print it's only portability across applications that have installed their specific SAS app and frankly this is an untenable future where people have to have different interactions with daps depending on the vendors that they use uh so really prompted us to start thinking about what is the open solution to this kind of portability and one more information as it relates to prerequisites before we talk about what the solution I'm sure you all have familiarity with what a crypto domain is alice. eth you can see a couple vendors uh listed here but functionally all of these vendors and there's many more doing crypto domains have two things in common one is an onchain registry associating the human readable name let's say alice. eth with the uh wallet address and that is the thing when somebody types alice. eth into a wallet that gets looked up and goes okay where should we actually send these tokens 0x so on and so forth is there and also these smart contracts that manages these names have a place to write metadata um so just data associated with that account and so the big Insight here is let's combine these two things together essentially taking a crypto domain like alice. eth and combining it with a key to create what is the ultimate web 3 account object and the standard name that we've been talking about and we'll put be putting forward a a c a chain agnostic Improvement proposal together next week is login with name and I'll take you through the user flow as well as how it works um as a standard so the user flow is really quite simple somebody clicks login with name on one of the login models then they are presented with the authentication challenges just like logging into any web2 website and then that's it they're logged in um depending on the KMS provider the key management system being used here uh there maybe be some like details to figure out whether or not there's a secret stored on the user's device or not in the case of lit that there's not uh which is helpful for portability and now let's talk about how this works so the the Insight here is in that metadata field of the crypto domain writing the key management provider there such that the user Alice when Alice enters alice.

eth into the modal the modal looks up on chain and goes who's got the key for this name then that key management provider is notified and says hey alice. eth is trying to log in here what is the authentication material associated with Alice let's say for the sake of example it's sign in with Google with a six-digit authenticator Google Authenticator style code those get served back up to to Alice Alice clicks login with Google enters her six-digit code which in turn uh she's now completed the authorization and the authentication excuse me with the key management provider and so the signature is generated and Alice is logged into the DAP um so the state of development of this today is uh we should have a a live demo of this in a week that is using lit keys and the wagm react kit uh there's a chain agnostic Improvement proposal going up soon and a lot of our collaborators around this cape uh are the folks from uh EIP 75 that are thinking about single sign on and authentication these two things are going to work together and I think uh the future is really bright because we now have this really coherent idea of a web 3 account that you can log into accounts with you can receive messages at it you can receive money with it you can send money with it and the fundamental idea here now that we are in a space where there are third party Key Management Systems like lit and I'll mention more about that in a second is that the user is functionally logging into the domain using the web 2 style authentication and then the domain because it has a key associated with it is logging into the DAP and this is I think like uh a much better way for managing portability and making it open and Universal than we have today and as we think about okay what key management vendor should be used here some of the benefits of of using lit this distributed Key Management network uh running the MPC TSS inside of the tees is that you get full portability because there's no secrets stored on the user's device there's no centralized controllers this is a distributed Network as I mentioned we just launched with main net uh 3 weeks ago after 3 years of R&D currently it uses a test net token that'll be changing later this year social authentication multiactor authentication one of the other really interesting benefits around having the key material live inside of a network is being able to add all kinds of automation so there's an application called tele friends which is an intgram Wallet app uh where users can opt into automated copy trading where they can say I want my balance of my wallet to look exactly like like this wallet and they can be totally no human in the loop they could be asleep they could be at the bar they could do whatever the signing is happening in an automated way because what lit functionally is is a Key Management Service that where you can write serverless functions that dictate how the distributed key will sign and decrypt and then one of the other benefits here as this starts to become fully realized is this also becomes a mechanism for abstracting the bridging of ass asss across chain and the chain selection away from users that can move into the background and then also mention domain wallet. ID this is the crypto domain project that that we're playing with uh where any given brand can essentially become a registar of these type of domain wallets uh functionally what we're talking about here to any arbitrary customer that they may have so for example mrbeast fanclub.com could vision alice. mrbeast fanclub.

com and that name alice. beast. fanclub.com becomes one of these kind of domain wallet or ultimate web 3 account objects that we're talking about here combining the functionality of a wallet with a crypto domain and then um this is my last slide uh just to kind of zoom out here this is obviously a deep dive into a specific user experience standard and convention but just want to mention a perspective that has come uh has been really alive for us over the past 3 years in building out this key management Network which is that one way to think about the revolution that is a foot is certainly through the lens of digital assets and blockchain but my invitation to you is actually to even broaden your view of what Satoshi did and if you go back to the white paper and look at the first two sentences the first sentence is we need peer-to-peer cash I'm paraphrasing here the second sentence is digital signatures provide part of the solution but then we also need a method to prevent double spending and then the next nine pages are all about proof of work and the way that we've really been thinking about what is web3 what is crypto what is happening here in a way is the digital signature Revolution because this encompasses everything happening in digital assets everything happening in user owned data everything happening in credentialing and it's all made possible through cryptography and yeah as I mentioned lit is a key management Network that's distributed fault tolerant threshold based that developers can use to articulate programs for signing an encryption and with that here's how to find us um I'll be around right now and yeah really grateful that you're here or watching on the internet hello future thank you so [Applause] much thank you David and sorry everyone for the mixup um so please let's welcome on on stage morat adinis who's the founder of prev and he's solving um for execution hedge so welcome [Applause] him maybe some friends so hey everyone we're just going to have take a break for a couple minutes could be on schedule with it but we'll just do a check here sayar your presentation looks like we're taking a couple minute break yeah just gotest itly resp we just want to