Taproot is a #bitcoin upgrade which will occur at block #709632, ie. in Nov 2021
It brings several new innovations and features but one of them is especially interesting: Schnorr Signatures.
Let me tell you the brief history of asymetric cryptography 🧵
Asymmetric cryptography is a process that uses a pair of keys: public / private key.
Its most interesting application is *Digital signature*. It's a process where you can prove you know your private key without revealing it while anyone with your public key can verify your proof
This is exactly what we do, when we "send" #bitcoin
Asymmetric cryptography has been publicly discovered by the famous Diffie, Hellman, and then Merkle in the 70s. Then, in the late 70s, Rivest Shamir and Adleman invented the famous RSA cryptosystem which is still widely used.
In the 80s, Elliptic Curve Cryptography was discovered by Koblitz and Miller.
ECC has many advantages over RSA. Computations, data transfers are more efficient for a same level of security.
ECC, contrary to RSA is full of variations: basis field, curves, signature algorithms...
Let's focus on Signature algorithm. Schnorr signature was invented by Claus-Peter Schnorr in the 80s.
His signature algorithm is much simpler than any other, gives better security property and is linear (offering multisig almost for free).
But he did the worst thing that can happen to human knowledge (this, and claiming the break of RSA without any proof): He PATENTED his invention.
Thus, Schnorr signatures weren't used and ECDSA was specifically designed to bypass the patent.
When you look at ECDSA equations, it looks like a hack around Schnorr's equation.
In 2008, more than 20 years after the invention, the patent has expired. In 2008, Satoshi was finishing the design of #bitcoin. But because of the patent, Schnorr signature wasn't standardized.
Thus ECDSA was chosen for #bitcoin as a standardized and widely used algorithm.
In the meantime, Ed25519 was invented (2011), and can be seen as a variation of Schnorr Signatures.
(It's used in Polkadot, Cardano and Stellar).
30 years after this patent, Schnorr Signatures will be used in one of the largest scale application: #Bitcoin
It's a great news, but we lost 30 years because of a silly patent.
/fin
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👉 Your Ledger Nano S still works, and the Ledger Nano S Plus remains fully supported.
The Nano S had an incredible run, it was officially retired in 2022. Since then, we’ve been gradually phasing out its full support. 🧵
Launched in 2016, the Ledger Nano S helped define self-custody when BTC was just for HODLing. But nearly a decade later, as crypto and its use cases evolve, so must the hardware that secures it, so we’ve updated our products to meet today’s needs.
Why the transition? Memory is its primary constraint. Initially robust, the rapid growth of blockchains means the Ledger Nano S can't support new applications, feature submissions, or app updates. The LedgerOS, Bitcoin, Ethereum, and Exchange apps alone nearly fill its 320kb memory, leaving very little room for anything else.
It introduces increased blob throughput, validator tweaks allowing to autocompound and stake up to 2048 ETH on one validator, and a big leap in account abstraction via EIP-7702.
Here's how Ledger is preparing to support it — securely. 🧵👇
Our North Star remains the same: security first.
To minimize risk, initial support for EIP-7702 will only allow interactions with well-vetted smart contracts. We'll expand this list cautiously as the ecosystem matures.
Good news. Everything continues to work smoothly for Ledger users — as you'd expect.
🔸 Regular ETH transfers
🔸 Smartcontract Interactions
With clear signing when the contract is supported and with transaction checks
At @Ledger, you might know that we have the @DonjonLedger, our dedicated team constantly conducting open security research.
We recently worked with Trezor, revealing that their Trezor Safe 3 was susceptible to physical supply chain attacks. Here's a thread on our findings:🧵
Our Ledger Donjon security research revealed that if a Trezor Safe3 device was stolen, an attacker could theoretically tamper with the device and modify the software running on it, endangering its user’s funds, even if this device uses a Secure Element.
Secure Elements - a technology Ledger has pioneered for securing digital assets - are chips specifically designed to withstand physical attacks, providing a robust safeguard for users' secrets. Trezor's new Safe line of products incorporates this technology, marking a substantial security improvement.
For me, the biggest takeaway from the ByBit hack is this: Corporations and financial institutions must use enterprise-grade custody solutions
Storing $1.4B in a Safe{Wallet} free smart contract with a group of signers designed for retail users should be a relic of the past🧵
That said, I’ve been asked multiple times why Safe transactions aren’t Clear-Signed on Ledgers.
First, Clear Signing means displaying all relevant transaction details on the device, so the user fully understands what they’re signing. What you see is what you sign. When sending or receiving ETH, this works seamlessly across all Ledger devices.
However, things get trickier when you start interacting with smart contracts.
Ledger devices aren’t connected to the Internet—they receive a binary payload with raw transaction data. Since Ethereum Virtual Machines (EVMs) can execute arbitrary code, smart contracts (and their methods/parameters) can be arbitrarily complex.
In cryptography, there are three main families of algorithms:
- Hashes: One-way functions crucial for integrity. Blockchain security heavily depends on these.
- Encryption: Functions ensuring confidentiality. Most blockchains rarely use these.
- Signatures: Functions ensuring authentication and non-repudiation. These are critical for proving ownership of coins and validating blocks in PoS systems. These primitives rely on asymmetric cryptography, which is also used for encryption and key agreement.
If either hash functions or digital signatures were compromised, blockchain security, and much of our digital infrastructure, would collapse.
Quantum computing has explored quantum algorithms since long before quantum computers were feasible. Two key algorithms emerged:
- Grover’s Algorithm (1996): Accelerates the search for a specific item in an unsorted list, operating quadratically faster than classical algorithms. Instead of testing items sequentially, it tests many simultaneously, like magic! en.wikipedia.org/wiki/Grover%27…
- Shor’s Algorithm (1994): Efficiently factors large numbers and solves the discrete logarithm problem, making it a threat to RSA encryption and elliptic curve-based cryptosystems. en.wikipedia.org/wiki/Shor%27s_…
(If you don’t like drama, just hodl your Bitcoin in your ledger, and you’ll be fine)
Everything unfolded in less than a month. Below are the key milestones of the story 👇