Decentralized Trusted Party

HOME | Investors | White Paper | Tech Spec | Github

Decentralized Trusted Party(DTP), is a tool for secure and confidential transactions through a Confidence Coin blockchain. All transactions are required to be made via the DTP, as the encrypted details of the origin, destination, and transacting balance are kept confidential.

The process of using DTP involves a wallet declaring itself as a DTP through the Confidence Coin blockchain, after which users can entrust their wallets to the DTP through the same blockchain. Users can then conduct transactions with one another and with external entities through the DTP’s external monetary system. During an update transaction, the DTP has the capability to create new wallets and transfer the users’ coins to these wallets if necessary. The DTP performs an update transaction on the blockchain to synchronize the wallet balances with the balances recorded on the blockchain.

To ensure the integrity of the system, certain restrictions must be followed. The total number of coins in the system must remain unchanged both before and after a transaction, and the wallet balances outside of the DTP can only increase. Additionally, DTP must perform an update transaction every x days, as it declared in the blockchain, or risk losing the trust of all wallets. Also, wallets can revoke their trust from the DTP at any time through the blockchain.

A retail store example

For instance, let’s consider a scenario where a well-known retail store adopts DTP as a means of facilitating transactions with its customers. The store declares itself as a DTP and allows customers to entrust their wallets to the store’s DTP. On a daily basis, the store performs an update transaction to synchronize the balance of all customers with the balances recorded on the Confidence Coin blockchain.

The shop-DTP supports a range of transactions, including purchases from the store, returns and refunds, creation of new wallets, and extraction of coins from the shop to another wallet owned by the customer. Suppose the store handles thousands of internal transactions and hundreds of external transactions on a daily basis. During the update transaction, it may only update the balance of 1000 wallets, with 10% of those being external wallets.

From an external perspective, the movement of coins from wallet to wallet, as well as the origin of the coins, is kept confidential and cannot be traced. This demonstrates the secure and confidential nature of transactions facilitated through DTP.

DTP not only offers increased privacy and security, but also safety. This is due to the fact that DTP operates as a legal company, allowing the government to monitor and prevent fraudulent and illegal activities in cryptocurrency transactions. According to Chainalysis, the value of cryptocurrency sent from illicit addresses increased by 68.0% to nearly $23.8 billion in 2022. By utilizing DTP, users can rest assured that their transactions are protected from malicious actors and in compliance with legal regulations.