DUSK NETWORK Review
Dusk Network is a privacy-oriented blockchain protocol featuring Segregated Byzantine Agreement to provide privacy, programmability, and contract auditability.
KEY FEATURES & HIGHLIGHTS
- Private-Proof-of-Stake implementation (Proof of Blind Bid)
- Consensus in three phases: Block Generation, Block Reduction and Block Agreement.
- ZeroCaf for fast, efficient and Bulletproof-friendly Elliptic Curve operations. ZeroCaf is an Elliptic Curve developed on the Ristretto scalar field.
- Implementation of Poseidon, a Zero Knowledge friendly hashing algorithm.
- Browser Nodes for Zero Knowledge verification.
- Zero Knowledge Virtual Machine architecture
- Instant Transaction Finality: Due to the properties of the Dusk Network consensus protocol transactions are final immediately after the completion of a block, aside from a negligible probability of a fork.
- Private Proof-of-Stake: Dusk Network’s consensus protocol, Segregated Byzantine Agreement ("SBA"), is powered by Proof of Blind Bid that enables Block Generators to stake anonymously.
- Decentralisation: By disincentivizing resource centralization from staking pools, smaller participants are encouraged to partake in the consensus.
- Replaceability: Consensus participants are chosen pseudo-randomly and independent of earlier outcomes.
WHAT IS DUSK?
Dusk is built by a team of entrepreneurs, engineers and researchers with technical experience at Amazon, TomTom, Mozilla, Reaktor, and blockchain backgrounds (Zcash, City of Zion, NEO Research, etc).
Dusk Network is currently in testnet phase and aims to be a blockchain protocol designed for easy deployment of programmable Zero Knowledge dApps, thus becoming the backbone of an open, permissionless and global privacy-oriented dApp ecosystem.
The Project aims to remove technical barriers that have hindered mainstream issuance and trading of products such as security tokens. Compliance, auditability and privacy are built into the open, permissionless Confidential Security Token Standard (“XSC”).
By allowing Dusk to be openly accessible, the Project's mission is to become the privacy infrastructure of choice for an entire ecosystem of solutions, whether in finance, governance, cybersecurity, or something completely new.
With a combination of privacy and compliance, Dusk is designed for the financial industry use, and as such, Dusk’s adoption strategy focuses on the security token market, which is in need of a purpose-built blockchain.
Project Value Proposisiton
- Privacy: Dusk Network provides speed and full user privacy, while enabling decentralized application issuers and third-parties to create meaningful Zero Knowledge proofs to fulfill checks and balances, and audit & reporting requirements.
- Permissionless: Anybody can join the network as a consensus participant without a need for approval from a central entity.
- Public: Users do not need approval of a trusted authority to use the Dusk Network blockchain. The Dusk Network blockchain also requires minimal processing power and modest IT resources to join. All users who possess the DUSK token can participate in the consensus.
- Compliance: Through Zero Knowledge proofs, companies and projects are able to create real world applications that can adhere to strict compliance requirements whilst still offering data privacy. This increases the ability to perform business processes on-chain, leading to significant cost reduction.
Token Supply Distribution:
- Private Sale (including BEP2 issuance) comprise 50% of total supply.
- Partnerships tokens comprise 11.81% of total supply.
- Technical Development Fund comprise 18.06% of total supply.
- Marketing & Events tokens comprise 7.29% of total supply.
- Team tokens comprise 6.42% of total supply.
- Advisors tokens comprise 6.42% of total supply.
Token Governance & Use of Funds
As of July 2019, Dusk Network has used approximately 17.6% of TGE funds according to the allocations below:
- 56% R&D
- 6% Operational
- 11% Marketing & PR
- 18% Business Development
- 9% Legal & Audit
DUSK Token Overview & Use Cases
- The DUSK token is used to stake and participate in the consensus.
- In addition, the DUSK token is used to pay for transactions, deploying dApps, and as gas. The token also serves as rewards for the consensus participants.
- DUSK can be traded for XSC-based tokens, both one-way and through atomic swaps.
- The DUSK token will be used for on-chain governance within XSC once it is released.
- In Dusk Network, block rewards are paid through an emission of DUSK defined in the protocol. The majority of all newly issued DUSK will be rewarded to consensus participants, while a minor portion will go to a technical development fund, creating an autonomous funding mechanism for the long term research and development.
DUSK token is currently listed on Binance DEX, Bitfinex, Ethfinex, and Bittrex. Core crypto trading pairs include DUSK/BNB and DUSK/BTC; core fiat trading pair include DUSK/USD.
PRODUCT & METRICS
Dusk Network uses Zero Knowledge cryptography to allow network participants to prove the correct outcome of a wide range of operations (i.e. transacting a lawful amount of tokens, participate to a blind bidding auction, prove right-to-access to a service, etc) without revealing identities or any transaction details while provide proof of correct computation in a trustless manner. The browser nodes are used to provide these different types of verification.
Dusk nodes compete in the block selection process by anonymously committing (i.e. staking) an undisclosed amount of Dusk tokens and thus prove compliance to the process by generating a Zero Knowledge proof of such transaction. By delegating to the browser the workload of verifying (or even generate) Zero Knowledge proofs, they can leverage game theoretic principles to let the community help with the computation power required to verify Zero Knowledge proofs multiple times and bring Dusk Network one step closer to a fully browser based blockchain experience.
BLOCKCHAIN & NETWORK DATA
Segregated Byzantine Agreement
The roles in the protocol are split between two different node types: Block Generators and Provisioners. Block Generators compete in a recurring lottery for the right to submit block candidates, while Provisioners run consensus over the selection of the lottery winners and acceptance of their proposed block. In order to become Block Generators, full nodes submit a confidential transaction called Blind Bid. Provisioners, instead, are required to stake their DUSK publicly, while participating in the consensus.
During the Blind Bid phase, aspiring Block Generators stake an amount of DUSK for the right to participate in the block generation lottery. The stake transaction is called a Blind Bid, because the amount of DUSK staked and the identity of the Block Generator are kept confidential. The Blind Bid also carries a secret number 'k' chosen arbitrarily by the Block Generator. This way she can claim ownership of her own transaction at any time, despite its confidentiality and without disclosing her identity. All valid Blind Bids are kept in a Merkle Tree saved on the blockchain.
During each round, Block Generators use their Blind Bid to run a non-interactive lottery and obtain a score. The amount of DUSK in the Blind Bid positively affects this score. Thus, Block Generators anonymously transmit their proposed block to the Provisioners alongside the obtained score and the Zero Knowledge proof of Blind Bid; therefore proving knowledge of the embedded secret 'k' and the correctness of the score computation. Due to the reliance upon Zero Knowledge proof of correctness, proof of Blind Bid provides a significantly higher level of security if compared to public Proof-of-Stake systems while showing an equal resilience to Sybil attacks. A committee of Provisioners validates all submissions and select the candidate block with the highest score.
After the Selection phase, a small committee of Provisioners perform Block Reduction: a two step routine to gather Provisioners' signatures and assure convergence over a single block. If more signatures than a threshold of 75% of committee participants are collected, the candidate block is then established. The committee chosen for Block Reduction is always a small subset of the entire provisioner population, deterministically extracted through a non-interactive algorithm called "deterministic sortition". The non-interactive deterministic extraction algorithm additionally enables every node in the network to calculate who is in the committee from public parameters. This can be used to single out compromised participating Provisioners and decrease their reputation.
The Block Agreement is an additional phase designed to guarantee immediate finality to the selected block and provide protection against the "timeout fork" attack. During this phase, an additional committee gathers and verifies the signatures collected at the Reduction phase. This phase provides a statistical guarantee that at least one honest node has received a set of votes exceeding the minimum threshold required to successfully terminate the respective phase of the protocol.
If the candidate block does not reach sufficient signatures, or agreement votes, the candidate block is omitted from the pool of candidate blocks and the process loops back to the selection stage. This time another candidate block with the highest score is selected and the process repeats until a favorable outcome is reached.