New Feature: Encrypting User Secret Share on Ika

We are excited to introduce a new feature on Ika: Encrypting User Secret Share. This feature significantly simplifies key management by allowing the encryption of any user secret share using a single authentication key, directly on-chain. It opens up countless possibilities for use cases that simplifies the user experience while maintaining zero-trust security principles.

Understanding How It Functions Today

Ika powers the dWallet primitive, an advanced cryptographic building block that allows control over digital assets across multiple networks. At the core of the dWallet is its novel threshold signature scheme 2PC-MPC. This scheme uses a Two-Party Computation (2PC) process between the user and a distributed party, which itself is operated by a Multi-Party Computation (MPC) between Ika's network participants.

In practice, every signature made by a dWallet requires the participation of both the user and Ika. This unique structure ensures that users retain control over their assets while benefiting from the security and functionality provided by Ika. The user holds a User Secret Share for each dWallet, which is necessary to authorize transactions and generate signatures. This approach guarantees Zero Trust Security by requiring user involvement in every action, thereby upholding the Zero Trust principles of blockchain.

Understanding the Simplicity of Encrypting User Secret Share

Before the introduction of the encryption feature, managing multiple dWallets on Ika required users to handle different types of secret material: Authentication Key/s and separate User Secret Share/s of dWallets. While this setup ensured a high level of security, it also introduced a layer of complexity. Users needed to keep track of multiple keys, and as the number of dWallets grew, so did the potential for errors or mismanagement. This complexity could be especially challenging for users who don’t possess a deep understanding of blockchain security.

Now, with the new encryption feature, the process becomes significantly more straightforward. Instead of juggling multiple User Secret Shares, users can encrypt all their secret shares using their Authentication Key. This means that the Authentication Key can be used to securely encrypt and manage access to any number of User Secret Shares across various dWallets.

How to Use the Encrypted Feature in Smart Contracts‍

The encrypted feature on Ika simplifies various scenarios in DeFi and beyond, enabling users to manage shared access or transfer ownership seamlessly. Whether transferring a portfolio, using it as collateral, or acting as guardrails for DeFi AI agents, this feature eliminates the need for users to manually handle key management. All operations happen securely on-chain without complex off-chain processes.

Use Case: Streamlining AI-Driven Asset Management

Consider scenarios where you want to grant an AI agent permissions to manage trades on your behalf while enforcing specific policies for 20 different dWallets. In a typical setup, you would have to share your private key with the AI agent, essentially granting it full control over your assets.

However, with a dWallet, you only provide access to the User Share, which does not have any signing power by itself, and set permissions through a unique Authentication Key that the AI agent holds. That Authentication Key (together with the User Share) can give the AI agent power to operate only within the limits defined in the smart contract. The only complexity here is that managing 20 different User Shares across multiple dWallets can create key management overhead.

With the new encryption feature, users no longer need to manage a separate User Share for each dWallet. Instead, they can encrypt all User Shares using a single Authentication Key that already has the required permissions.

Now, when the AI agent manages multiple dWallets, all User Shares can be encrypted to a single Authentication Key. This approach significantly reduces the secret material that the AI agent needs to handle to a single key, not only simplifies asset and key management but also enhances overall security.

Key Features at a Glance

• On-chain: By allowing encrypted user shares to be validated directly on-chain, the need for manual off-chain actions is minimized, reducing complexity and reliance on intermediaries.
• Simplicity: Unified key management through encryption simplifies the process, as users need only manage a single key across multiple dWallets.
• Security: By securing all interactions with on-chain encryption, the system maintains high-level security and upholds the core principles of Zero Trust.
• Effortless dWallet Creation: While users could always create unlimited dWallets, managing the keys was a challenge. The new encryption feature makes the process seamless and transparent. With dWallets being cost-effective from the start, this added simplicity now removes any limitations or barriers to creating and managing as many dWallets as needed.
• Developer abstraction for complex operations: Developers can simplify user interactions by creating a dWallet seamlessly under the hood, enhancing user experience without exposing the underlying complexity.

Start Building with Ika

Ika offers new possibilities for building secure and decentralized applications. The new encryption feature simplifies managing dWallets, making it more secure, scalable, and aligned with zero-trust principles. Start building with Ika today.

For more information on Encrypting User Secret Share and how to utilize this feature into your project, visit our documentation.

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