Sonr: A Peer-to-Peer Identity Verification System (DRAFT)
Prad Nukala
The standardization of user identity has historically been inconsistent, leading to reliance on proprietary third-party sources for identity verification. We proposae a peer-to-peer network which addresses this by authenticating identifiers at the device level, thereby bypassing the limitations of centralized identity management systems. This methodological shift not only bolsters the veracity of digital identities but also ensures adherence to the W3C Decentralized Identifiers standards, advocating for a universally recognized framework of digital identity verification.

1 Introduction

In the contemporary landscape of digital technology, the concept of identity management stands at a pivotal crossroads. Amidst this transformative era, a blockchain-based platform emerges with a pragmatic approach to digital identity. This system is not merely a technological construct; it represents a profound integration of decentralized principles with tangible solutions to digital identity challenges. Its design is rooted in addressing practical issues faced by users in the digital realm, offering robust security while simplifying the complexities of identity management.

The architecture of this platform extends beyond the traditional scope of blockchain technology. It embodies a synergy of advanced cryptographic protocols, personal identifiable information management, and tailored data solutions for various applications. This integrative approach marks a significant leap in the field of digital identity, where the emphasis is on real-world applicability and user-centric design.

Central to the ethos of this platform is the empowerment of users. By prioritizing control over personal data and digital autonomy, it introduces a paradigm shift in how individuals interact with digital systems. This platform is not just an innovation in technology; it is a facilitator of enhanced digital interaction, aiming to streamline identity-related processes, enhance user trust, and foster a more secure, transparent digital ecosystem.

2 Blockchain and Identity Management

In a world with Quantum Computing Resisting cryptographic methods there isnt a need to bear so much of the responsibility regarding authentication in the hands of the user. Sonr was designed to simplify the user experience while simultaneously providing far greater security measures over their personal data. We incorporate the following concepts in our Identity primitive:

  • Multi-Party Computation: We remove the usage of a Private Keys when constructing Digital signatures by utilizing Rotating Keyshares with the DKLS algorithm.

  • Identifier Accumulators: Accounts are structured to be Anonymous and Private by default. Sonr Employs a Zero-knowledge Accumulator to achieve this result with sub-identifiers.

  • Wallet Interface: The public key of the Sonr Account is encoded with bech32 and persisted on-chain. Accounts are persisted across all Validator nodes providing a resilient and highly resolvable digital profile.

When incorporating all these concepts in tandem we achieve a portable, interoperable, and secure Identifier that we define as a Sonr Account.

The Sonr platform approaches user authentication with the recognition that a user's identity is multi-dimensional and must be safeguarded with the utmost integrity. This is achieved through the implementation of Decentralized Identifiers (DIDs) and Multi-Party Computation (MPC), creating a robust framework for identity management. DIDs are a cornerstone of the Sonr identity system, providing a verifiable and self-sovereign identity that users control entirely. This decentralized identity is not just a static entity but a dynamic one, capable of interfacing securely with various facets of the Sonr ecosystem. The MPC component further enhances security by ensuring that the private keys, the quintessential element of user authentication, are never fully exposed, even during the authentication process.

3 User Application Relationship

The User-Application relationship is facilitated through a structured process that defines the user's identity in a secure, verifiable manner, and permits applications to interact with this identity within a decentralized framework. The system employs a novel method for registering and authenticating users, grounded in the principles of blockchain technology.

This system's approach to managing user identity offers several practical advantages. It ensures a high level of security by employing cryptographic authentication, decentralizes the control of identity away from any single authority, and maintains user autonomy over personal information. The transparency in service records enhances trust, while the role of relaying parties streamlines the verification process. Integration with blockchain-based organizational entities extends the user's ability to perform secure and direct interactions within the network.

  • Role of Intermediaries in Network Communication: Within this ecosystem, intermediary entities, termed relaying parties, are designated to facilitate the communication between client applications and the blockchain. These entities store essential configuration details and support the integrity and efficiency of the identity verification process, thereby enhancing the system's overall reliability.

  • Integration with Organizational Entities: The system also introduces the integration of organizational entities that exist on the blockchain, creating a synergy between these entities and the user's identity. Linking organizational roles and permissions with DIDs allows for a seamless interaction with smart contracts and other blockchain-based organizational structures, directly with a verified digital identity.

  • Structure and Format of Decentralized Identifiers: Central to the system's identity management is the use of Decentralized Identifiers (DIDs), which serve as a pivotal component for user identification. DIDs are formulated to ensure security, control, and interoperability of the user's identity data across various service landscapes. Stored on a blockchain, these identifiers resist tampering and provide a dependable mechanism for verification processes.

  • Service Records in Identity Management: Service records constitute a detailed catalog of services linked to a user's DID, delineating the mechanisms through which the user's identity can be authenticated and utilized. These records act as a transparent and secure method for applications to understand and engage with the user's identity, ensuring that the user's interaction with services is based on consent and awareness.

4 Incentivizing Digital Integrity Persistence

The role of tokenomics in the proposed system is twofold: it provides a medium of exchange within the ecosystem and serves as a reward mechanism for validators. The platform's native tokens are used to facilitate transactions, secure network integrity, and incentivize behaviors that contribute to the network's longevity and reliability

The role of tokenomics in the proposed system is twofold: it provides a medium of exchange within the ecosystem and serves as a reward mechanism for validators. The platform's native tokens are used to facilitate transactions, secure network integrity, and incentivize behaviors that contribute to the network's longevity and reliability.

Validators play a pivotal role in the network, responsible for processing authentication requests and maintaining the blockchain's integrity. They are incentivized through a task claiming process based on a first-come-first-serve mechanism and are remunerated via transaction fees and token rewards. This incentive structure ensures the high performance and reliability of services within the network.

  1. Task Claiming on a First-Come-First-Serve Basis: Validators select tasks from the Order Stack on a first-come-first-serve basis, ensuring a fair and efficient distribution of work.

  2. Delivery and Payment Process: If a validator successfully delivers a service request, they proceed to the payment process. The payment is provided with a vesting schedule, aligning the validators' incentives with the long-term health of the network.

  3. Slashing Conditions for Non-Delivery: In instances where a validator fails to deliver on a service request, a slashing condition is triggered. This condition serves as a deterrent against poor performance and ensures the reliability of services within the network.

  4. Consequences of Failure: Failure to deliver a service results in the slashing and burning of the validator's staked SNR tokens. This punitive measure reinforces the commitment of validators to fulfill their tasks diligently and efficiently.

5 Delegated Proof-of-Stake Validator Mechanism

We will be leveraging a delegate stake mechanism in order to optimize buy-in for users in the network. It imposes an excess opportunity cost if slashing is implemented. With this being said, there are some challenges in implementing staking:

  • The token must already have value

  • Allocating power or influence via staking gives major edge to wealthy users

  • They are frequently subject to gaming and coordination problems

However there is substantial benefit in incorporating a staking mechanism, with the following criteria met we can create a sustainable design:

  1. The upfront capital required to stake should not significantly discourage them to stake

  2. If a stakeholder group is making decisions that materially harm the network, they would be punished via slashing the stake.

  3. Stakeholders can make decisions that positively impact the future network health and token price, therefore holding stake can promote positive growth

6 Network Architecture and Interoperability

Our incorporation of embedded light nodes signifies a strategic move towards enhancing network robustness and efficiency. These nodes operate with a reduced resource footprint, ensuring a widespread and seamless network distribution. They form the bedrock of the infrastructure, interfacing directly with a series of validators. These validators are pivotal in maintaining the integrity and trustworthiness of the network, each playing an instrumental role in processing transactions and securing the network's protocol.

Blockchain Services are instrumental in ensuring seamless interoperability and data exchange across the network. The IBC Relayer stands at the forefront of inter-blockchain communication, enabling different blockchain protocols to transfer and share information effectively. Concurrently, IPFS/Libp2p Routing underpins the decentralized routing of information, ensuring resilient and scalable data distribution across the network.

The overarching network architecture is designed with interoperability at its core, integrating protocols such as Matrix and Pinecone to facilitate communication and data exchange across disparate systems. The Matrix Protocol emerges as a new paradigm in secure, decentralized communication, while Pinecone Routing introduces a novel approach to establishing network pathways, enhancing the efficiency and reliability of data transmission.

7 Optimizing Data Storage

  • Technical details on the use of ZK Accumulator and fingerprint length.

  • Description of IPFS off-chain ORM storage solutions.

  • Role of BLAKE3 Hash in Sonr’s data storage optimization.

8 User Authentication and Wallet Management

The authentication of users and the management of their wallets are foundational elements of any blockchain-based system, which require both rigorous security measures and ease of use to gain widespread adoption. In the Sonr ecosystem, these components are addressed through a multi-faceted approach that blends traditional cryptographic security with innovative blockchain solutions. User authentication is not a linear pathway but a complex interaction of various decentralized protocols, each serving to reinforce the security and privacy of the user's digital identity.

Wallet management within Sonr is a testament to the platform's commitment to seamless interoperability and user control. By integrating with Inter-Blockchain Communication (IBC) protocols, Sonr facilitates a wallet infrastructure that can manage multiple cryptocurrencies across different blockchains. This allows users to have a single, unified wallet experience while engaging in a diverse range of transactions within the blockchain space. The underlying technology of IBC not only simplifies the user experience but also maintains the rigorous security standards necessary for cross-chain interactions. The wallet's architecture is designed to provide users not only with a means of transaction but also with a gateway to the growing landscape of decentralized applications (DApps), thus positioning the Sonr wallet as a central hub for the user's digital asset management.

9 Asset Management and Value Transfer

The Sonr platform has implemented a sophisticated token handling and treasury process designed to ensure the stability and sustainability of the SNR token. This process is critical in managing the economics of the Sonr ecosystem and ensuring its long-term viability.

  1. Buyback Process for Non-SNR Payments: When payments are made in currencies other than SNR, the Sonr system initiates a buyback process. This approach involves using the received non-SNR currency to purchase SNR tokens from the open market. This mechanism serves two primary purposes: it supports the demand and market value of SNR tokens and ensures a consistent influx of SNR into the system, reinforcing its utility and circulation within the ecosystem.

  2. Contribution to SNR Fee Pool: The SNR tokens acquired through the buyback process are contributed to the SNR fee pool. This pool plays a pivotal role in the ecosystem, as it is utilized for various operational purposes, including network transaction fees, rewards for validators, and other ecosystem incentives. This continuous replenishment of the fee pool ensures the smooth operation and sustainability of the network's economic activities.

  3. Allocation to the Treasury: Half of the unvested tokens, representing 50% of the total, are allocated to the Sonr treasury. This treasury acts as a strategic reserve, supporting the long-term objectives of the Sonr ecosystem. Funds from the treasury can be utilized for various purposes, including development initiatives, marketing efforts, community growth, and other activities that align with Sonr’s strategic goals and contribute to the overall growth and success of the platform.

  4. Scaling Inflation Rewards with User Base Growth: To ensure the equitable distribution of incentives and maintain a balanced economic model, Sonr has implemented a system where inflation rewards scale relative to the authentic growth of its user base. This approach means that as the number of genuine users on the platform increases, so do the inflation rewards. This scaling mechanism aligns the incentives with actual platform usage, fostering an environment where growth in the user base directly contributes to the overall health and stability of the token economy.

10 Privacy, Anonymity, and Security

  • Discussion on role-based access to user personally identifiable information (PII).

  • Overview of developer-provided authentication requirements for controllers.

11 Technical and Performance Analysis

  • Comparative analysis of DID Authentication versus ZK Auth.

  • Evaluation of DPoS Throughput and Carbon Efficiency in the Sonr network.

12 Conclusion

  • Summarizing Sonr’s vision, achievements, and future outlook.

References

Sonr: A Peer-to-Peer Identity Verification System (DRAFT)
Prad Nukala
The standardization of user identity has historically been inconsistent, leading to reliance on proprietary third-party sources for identity verification. We proposae a peer-to-peer network which addresses this by authenticating identifiers at the device level, thereby bypassing the limitations of centralized identity management systems. This methodological shift not only bolsters the veracity of digital identities but also ensures adherence to the W3C Decentralized Identifiers standards, advocating for a universally recognized framework of digital identity verification.

1 Introduction

In the contemporary landscape of digital technology, the concept of identity management stands at a pivotal crossroads. Amidst this transformative era, a blockchain-based platform emerges with a pragmatic approach to digital identity. This system is not merely a technological construct; it represents a profound integration of decentralized principles with tangible solutions to digital identity challenges. Its design is rooted in addressing practical issues faced by users in the digital realm, offering robust security while simplifying the complexities of identity management.

The architecture of this platform extends beyond the traditional scope of blockchain technology. It embodies a synergy of advanced cryptographic protocols, personal identifiable information management, and tailored data solutions for various applications. This integrative approach marks a significant leap in the field of digital identity, where the emphasis is on real-world applicability and user-centric design.

Central to the ethos of this platform is the empowerment of users. By prioritizing control over personal data and digital autonomy, it introduces a paradigm shift in how individuals interact with digital systems. This platform is not just an innovation in technology; it is a facilitator of enhanced digital interaction, aiming to streamline identity-related processes, enhance user trust, and foster a more secure, transparent digital ecosystem.

2 Blockchain and Identity Management

In a world with Quantum Computing Resisting cryptographic methods there isnt a need to bear so much of the responsibility regarding authentication in the hands of the user. Sonr was designed to simplify the user experience while simultaneously providing far greater security measures over their personal data. We incorporate the following concepts in our Identity primitive:

  • Multi-Party Computation: We remove the usage of a Private Keys when constructing Digital signatures by utilizing Rotating Keyshares with the DKLS algorithm.

  • Identifier Accumulators: Accounts are structured to be Anonymous and Private by default. Sonr Employs a Zero-knowledge Accumulator to achieve this result with sub-identifiers.

  • Wallet Interface: The public key of the Sonr Account is encoded with bech32 and persisted on-chain. Accounts are persisted across all Validator nodes providing a resilient and highly resolvable digital profile.

When incorporating all these concepts in tandem we achieve a portable, interoperable, and secure Identifier that we define as a Sonr Account.

The Sonr platform approaches user authentication with the recognition that a user's identity is multi-dimensional and must be safeguarded with the utmost integrity. This is achieved through the implementation of Decentralized Identifiers (DIDs) and Multi-Party Computation (MPC), creating a robust framework for identity management. DIDs are a cornerstone of the Sonr identity system, providing a verifiable and self-sovereign identity that users control entirely. This decentralized identity is not just a static entity but a dynamic one, capable of interfacing securely with various facets of the Sonr ecosystem. The MPC component further enhances security by ensuring that the private keys, the quintessential element of user authentication, are never fully exposed, even during the authentication process.

3 User Application Relationship

The User-Application relationship is facilitated through a structured process that defines the user's identity in a secure, verifiable manner, and permits applications to interact with this identity within a decentralized framework. The system employs a novel method for registering and authenticating users, grounded in the principles of blockchain technology.

This system's approach to managing user identity offers several practical advantages. It ensures a high level of security by employing cryptographic authentication, decentralizes the control of identity away from any single authority, and maintains user autonomy over personal information. The transparency in service records enhances trust, while the role of relaying parties streamlines the verification process. Integration with blockchain-based organizational entities extends the user's ability to perform secure and direct interactions within the network.

  • Role of Intermediaries in Network Communication: Within this ecosystem, intermediary entities, termed relaying parties, are designated to facilitate the communication between client applications and the blockchain. These entities store essential configuration details and support the integrity and efficiency of the identity verification process, thereby enhancing the system's overall reliability.

  • Integration with Organizational Entities: The system also introduces the integration of organizational entities that exist on the blockchain, creating a synergy between these entities and the user's identity. Linking organizational roles and permissions with DIDs allows for a seamless interaction with smart contracts and other blockchain-based organizational structures, directly with a verified digital identity.

  • Structure and Format of Decentralized Identifiers: Central to the system's identity management is the use of Decentralized Identifiers (DIDs), which serve as a pivotal component for user identification. DIDs are formulated to ensure security, control, and interoperability of the user's identity data across various service landscapes. Stored on a blockchain, these identifiers resist tampering and provide a dependable mechanism for verification processes.

  • Service Records in Identity Management: Service records constitute a detailed catalog of services linked to a user's DID, delineating the mechanisms through which the user's identity can be authenticated and utilized. These records act as a transparent and secure method for applications to understand and engage with the user's identity, ensuring that the user's interaction with services is based on consent and awareness.

4 Incentivizing Digital Integrity Persistence

The role of tokenomics in the proposed system is twofold: it provides a medium of exchange within the ecosystem and serves as a reward mechanism for validators. The platform's native tokens are used to facilitate transactions, secure network integrity, and incentivize behaviors that contribute to the network's longevity and reliability

The role of tokenomics in the proposed system is twofold: it provides a medium of exchange within the ecosystem and serves as a reward mechanism for validators. The platform's native tokens are used to facilitate transactions, secure network integrity, and incentivize behaviors that contribute to the network's longevity and reliability.

Validators play a pivotal role in the network, responsible for processing authentication requests and maintaining the blockchain's integrity. They are incentivized through a task claiming process based on a first-come-first-serve mechanism and are remunerated via transaction fees and token rewards. This incentive structure ensures the high performance and reliability of services within the network.

  1. Task Claiming on a First-Come-First-Serve Basis: Validators select tasks from the Order Stack on a first-come-first-serve basis, ensuring a fair and efficient distribution of work.

  2. Delivery and Payment Process: If a validator successfully delivers a service request, they proceed to the payment process. The payment is provided with a vesting schedule, aligning the validators' incentives with the long-term health of the network.

  3. Slashing Conditions for Non-Delivery: In instances where a validator fails to deliver on a service request, a slashing condition is triggered. This condition serves as a deterrent against poor performance and ensures the reliability of services within the network.

  4. Consequences of Failure: Failure to deliver a service results in the slashing and burning of the validator's staked SNR tokens. This punitive measure reinforces the commitment of validators to fulfill their tasks diligently and efficiently.

5 Delegated Proof-of-Stake Validator Mechanism

We will be leveraging a delegate stake mechanism in order to optimize buy-in for users in the network. It imposes an excess opportunity cost if slashing is implemented. With this being said, there are some challenges in implementing staking:

  • The token must already have value

  • Allocating power or influence via staking gives major edge to wealthy users

  • They are frequently subject to gaming and coordination problems

However there is substantial benefit in incorporating a staking mechanism, with the following criteria met we can create a sustainable design:

  1. The upfront capital required to stake should not significantly discourage them to stake

  2. If a stakeholder group is making decisions that materially harm the network, they would be punished via slashing the stake.

  3. Stakeholders can make decisions that positively impact the future network health and token price, therefore holding stake can promote positive growth

6 Network Architecture and Interoperability

Our incorporation of embedded light nodes signifies a strategic move towards enhancing network robustness and efficiency. These nodes operate with a reduced resource footprint, ensuring a widespread and seamless network distribution. They form the bedrock of the infrastructure, interfacing directly with a series of validators. These validators are pivotal in maintaining the integrity and trustworthiness of the network, each playing an instrumental role in processing transactions and securing the network's protocol.

Blockchain Services are instrumental in ensuring seamless interoperability and data exchange across the network. The IBC Relayer stands at the forefront of inter-blockchain communication, enabling different blockchain protocols to transfer and share information effectively. Concurrently, IPFS/Libp2p Routing underpins the decentralized routing of information, ensuring resilient and scalable data distribution across the network.

The overarching network architecture is designed with interoperability at its core, integrating protocols such as Matrix and Pinecone to facilitate communication and data exchange across disparate systems. The Matrix Protocol emerges as a new paradigm in secure, decentralized communication, while Pinecone Routing introduces a novel approach to establishing network pathways, enhancing the efficiency and reliability of data transmission.

7 Optimizing Data Storage

  • Technical details on the use of ZK Accumulator and fingerprint length.

  • Description of IPFS off-chain ORM storage solutions.

  • Role of BLAKE3 Hash in Sonr’s data storage optimization.

8 User Authentication and Wallet Management

The authentication of users and the management of their wallets are foundational elements of any blockchain-based system, which require both rigorous security measures and ease of use to gain widespread adoption. In the Sonr ecosystem, these components are addressed through a multi-faceted approach that blends traditional cryptographic security with innovative blockchain solutions. User authentication is not a linear pathway but a complex interaction of various decentralized protocols, each serving to reinforce the security and privacy of the user's digital identity.

Wallet management within Sonr is a testament to the platform's commitment to seamless interoperability and user control. By integrating with Inter-Blockchain Communication (IBC) protocols, Sonr facilitates a wallet infrastructure that can manage multiple cryptocurrencies across different blockchains. This allows users to have a single, unified wallet experience while engaging in a diverse range of transactions within the blockchain space. The underlying technology of IBC not only simplifies the user experience but also maintains the rigorous security standards necessary for cross-chain interactions. The wallet's architecture is designed to provide users not only with a means of transaction but also with a gateway to the growing landscape of decentralized applications (DApps), thus positioning the Sonr wallet as a central hub for the user's digital asset management.

9 Asset Management and Value Transfer

The Sonr platform has implemented a sophisticated token handling and treasury process designed to ensure the stability and sustainability of the SNR token. This process is critical in managing the economics of the Sonr ecosystem and ensuring its long-term viability.

  1. Buyback Process for Non-SNR Payments: When payments are made in currencies other than SNR, the Sonr system initiates a buyback process. This approach involves using the received non-SNR currency to purchase SNR tokens from the open market. This mechanism serves two primary purposes: it supports the demand and market value of SNR tokens and ensures a consistent influx of SNR into the system, reinforcing its utility and circulation within the ecosystem.

  2. Contribution to SNR Fee Pool: The SNR tokens acquired through the buyback process are contributed to the SNR fee pool. This pool plays a pivotal role in the ecosystem, as it is utilized for various operational purposes, including network transaction fees, rewards for validators, and other ecosystem incentives. This continuous replenishment of the fee pool ensures the smooth operation and sustainability of the network's economic activities.

  3. Allocation to the Treasury: Half of the unvested tokens, representing 50% of the total, are allocated to the Sonr treasury. This treasury acts as a strategic reserve, supporting the long-term objectives of the Sonr ecosystem. Funds from the treasury can be utilized for various purposes, including development initiatives, marketing efforts, community growth, and other activities that align with Sonr’s strategic goals and contribute to the overall growth and success of the platform.

  4. Scaling Inflation Rewards with User Base Growth: To ensure the equitable distribution of incentives and maintain a balanced economic model, Sonr has implemented a system where inflation rewards scale relative to the authentic growth of its user base. This approach means that as the number of genuine users on the platform increases, so do the inflation rewards. This scaling mechanism aligns the incentives with actual platform usage, fostering an environment where growth in the user base directly contributes to the overall health and stability of the token economy.

10 Privacy, Anonymity, and Security

  • Discussion on role-based access to user personally identifiable information (PII).

  • Overview of developer-provided authentication requirements for controllers.

11 Technical and Performance Analysis

  • Comparative analysis of DID Authentication versus ZK Auth.

  • Evaluation of DPoS Throughput and Carbon Efficiency in the Sonr network.

12 Conclusion

  • Summarizing Sonr’s vision, achievements, and future outlook.

References