Over the years of crypto adoption, many people lost their private keys and all their funds, accounting for billions of dollars in BTC and other cryptocurrencies. In the traditional sense, key-based wallets have an address where you can receive funds. However, usually, this address cryptographically derives from a secret key you must use to withdraw those funds. Therefore: "Not your keys, not your coins".
In the traditional world of finance, we can say that banks keep control of your funds, and analogously centralised exchanges usually keep control of users' private keys. But for example, in Argentina in 2001, with the so-called "Corralito", banks restricted access to USD deposits in one of the biggest financial crises of modern history. Those funds were later (partially) returned to their owners but in Argentinian pesos, and since then, the peso has dropped almost 36,000%. Decentralisation aims to solve the middlemen issue, giving control back to the user.
The Self-Sovereign Identity Protocol's technological pillars are blockchain and W3C Decentralized Identifiers (DIDs). TYRON has developed innovative solutions such as Social Recovery by combining these two technologies.
A TYRON identity can receive and hold funds in an SSI account, an account abstraction (AA) made of DIDx and DEFIx wallets. Your SSI requires you to prove control as the account owner, so your key-based wallet, such as ZilPay, acts as the SSI controller. Every time you make a transaction like sending funds, your account verifies that the order comes from your SSI controller. Thus, this external, key-based wallet must have coins to pay the transaction cost. You can update the SSI controller anytime, but what happens if you lose access to your current SSI controller?
But if your funds are in your SSI account and you have enabled TYRON social recovery, you will be able to regain control of your SSI with the help of your guardians.
- An NFT Domain Name is a non-fungible token that enables you to find your SSI account with a simple name (like an alias) instead of a difficult-to-remember cryptographic address. A TYRON NFT domain is software that enables reading access to a decentralised identity, ensuring that the data is up to date.
- A W3C Decentralized Identifier (DID) represents a unique ID whose meta-data is a DID Document. A DID has Verification Methods that are cryptographically verifiable. Thus, through crypto authentication, it is possible to verify the decentralised identity.
- When executing TYRON social recovery, the goal is to update the SSI controller and regain control of the account. To do this, one must provide a new key-based wallet, whose address must be signed by the SSI guardians. After this, anyone can request social recovery. During this transaction, the SSI will use its guardians' NFT domain names to fetch their DIDs and verify that they have correctly signed the new SSI controller address. If social recovery is successful, the new SSI controller will gain full control of the account and all its assets, including those deposited in DeFi protocols.
- To enable TYRON social recovery, the account owner must provide NFT domain names of at least three trusted guardians. There is no limit to the number of guardians; if there are six, the SSI will require at least four of them for social recovery; if there are eight guardians, the SSI will need five of them (thus, the SSI needs half of the number of guardians plus one at the time of recovery).
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