Thread by @TheeeeOA

So...What is DERO?

I hope to have created something we can all use. I try to draw as much context as I reasonably can

Lets get it

We on our way fam 😉

$DERO #DERO
#privacy #encryption

1/49...eesh

What is DERO?

DERO is a general purpose platform for building unstoppable decentralised applications and securely transferring value. It has been built from scratch.

It is the goal of DERO to create a sound monetary framework that will globally safeguard the privacy of all users and empower free markets to thrive, while maintaining complete auditability.

The platform is called DERO Homomorphic Encryption Blockchain Protocol (DHEBP) and leverage's the cutting edge technology called Homomorphic Encryption for all transfers.

This means that all wallet balances are in a permanently encrypted state even when being transferred from one wallet to another. Data is changed without being decrypted.

There is no actual need for Obfuscation or Zero Knowledge Proofs to keep transactions private as the platform is always encrypted.

If you would like to learn more about the cryptographic techniques used in Privacy coins today, including obfuscation and zero knowledge proofs, please see here: documentingdero.medium.com

To give some context, in crypto we have 2 major types of blockchain. We have standard protocols like Bitcoin/Monero which allow you to transfer an asset from A to B.

We also have these same blockchains which allow asset transfer, but also have a Virtual Machine on top of the base protocol which allows developers to make self executing automated code we call Smart Contracts, like Ethereum.

DERO is both, DERO Virtual Machine (DVM) is on DHEBP. Together these create the ultimate platform for creating almost anything one can imagine.

With encrypted privacy by default, this creates whole new use cases that the world has never seen before and use cases we haven’t thought about yet.

If the base layer 1 is encrypted by default, logic dictates that privacy can move up the layers. Privacy cannot move backwards, if you have layer 2 privacy it can never offer privacy on layer 1. Layer 1 privacy can always offer privacy to anything built on it.

DERO offers the phenomenal option of truly private smart contracts.

So here we can see not only is DERO pushing into the space of Ethereum and smart contracts, but due to DHEBP it actually offers an optimal store of value and the only homomorphically encrypted transfer of that value in existence.

Platform Points of Interest --->

Homomorphic Encryption (HE)

Everything is based upon HE. This keeps all wallet balances and transaction data in a permanently encrypted state. Never being decrypted by anyone but the account owner.

Ring CT

Even though HE means we do not require any obfuscation techniques to maintain privacy, using Ring CT to obfuscate the encrypted transactions adds a layer of deniability on top of permanent encryption.

Rocket Bulletproofs

NIZK range-proofs for secure validation of HE transactions. DERO ultrafast bulletproofs optimization techniques in the form used here did not exist anywhere in publicly available cryptography literature at the time of implementation.

10x faster than standard implementations and transaction structures are not compatible with other implementations.

Smart Contracts

DERO allows Smart Contracts to be built on the only permanently encrypted blockchain.

DVM is an interpretor based system to avoid security vulnerabilities, issues and compiler backdoors. This also allows easy audits of Smart Contracts for quality,bug-testing and security assurances. DVM supports a new language DVM-BASIC.

DVM-BASIC is a contract-oriented, high-level language for implementing smart contracts. It is influenced by GW-BASIC, Visual Basic and C and is designed to target the DERO Virtual Machine (DVM). It is very easy to program and very readable.

For more information please see: git.dero.io/DeroProject/dv… https://t.co/fPwbQma9g9

Token Fungibility

Unlike the ERC-20 standard, tokens created by Smart Contracts are true fungible assets on DERO. Tokens inherit the freedom of DERO. When a token is emitted from a contract it is then not controllable by the contract but only by the asset owner.

Transfer logic comes from the wallet and does not require a call to the emitting contract when using the token. DERO gives maximum ownership and fungibility even for tokens. This is worth thinking on.

Encrypted P2P Services

DERO has a unique feature on it’s blockchain through which encrypted digital delivery of 128 bytes of data which can include urls, license-keys, messages and can completely support building of market-place, secure and safe voting-systems etc.

This allows direct encrypted communication between two users through services.

Each transaction has an allocated space of 128 bytes. The information is encrypted from end to end and is not detectable/differentiable since this fixed space is in each transaction.

It just looks like a transaction, you can never know what is in it.Except sender and receiver wallet, no one can decrypt the exchanged messages/rpc-calls.

Unlike CryptoNote, when there is an incoming transaction, the account receiving the transaction has the ability to see the sender’s address. This feature allows Services to respond to a message without a third party.

TLS/SSL Encrypted Network Traffic

The P2P connections between network nodes is TLS/SSL encrypted. DERO uses Self-signed Certificate to avoid trust issues regarding third party certificate authority.

This is critical and prevents snooping of network traffic by ISP’s, network operators etc.

Account based model

DERO uses an account model as opposed to UTXO. This provides a preferable model for a smart contracts and other benefits such as instant balance syncing when connected to a node. So no more having to scan the whole blockchain just to receive your balance.

There are storage benefits as the state of the blockchain is smaller and so are transactions. All transactions are not inherently linked together like in UTXO helping create truly fungible unique assets.

Consensus

Proof of Work consensus with a GPU/ASIC resistant mining algorithm AstroBWT. This ensures one CPU one vote, fair and egalitarian mining that is inclusive for everyone. Read more about AstroBWT here:

github.com/deroproject/as…

Sigma Mining

This is the novel new mining method created to maximise decentralisation and resist majority hashrate attacks. Blocktime is 18 seconds and within every block there are 10 miniblocks that make it up. 1 miniblock is emitted approximately every 1.8 seconds.

These miniblocks allow on-chain storage of mining data which effectively turns the entire network into a large pool eliminating the need/benefit for mining pools. There are currently 48,000 rewards per day distributed among miners based upon work contributed...

thus creating a truly decentralized network and distribution of rewards. It also greatly improves handling of massive network traffic, where each daemon can support over 10,000 connected devices, acting as a way to pool all of your devices.

Node gets 1/10th of mining reward that is mined to that node, further incentivizing one to run their own node.

This is much to think about, currently in Proof of Work it is winner takes all for each block and this probability resets every block so whoever has most hashrate is always likely to mine the next block.

For comparison and context; Monero 720 block/rewards per day, Bitcoin 144 block/rewards per day

Furthermore to security, double spends are not possible. Only one transaction per block can be sent, but one transaction can be sent to multiple recipients. As the chain is settled every block (18 seconds) this ensures double spending is not possible at protocol.

Erasure Coded Blocks

Traditional Blockchains process blocks as single unit of computation(if a double-spend tx occurs within the block, entire block is rejected). As soon as a block is found, it is sent to all its peers. DERO processes each transaction as the unit of computation

So DERO blockchain can erasure code the block into 48 chunks, dispersing the chunks to peers randomly.Any peer receiving any 16 chunks( from 48 chunks) can regenerate the block and thus lower overheads and lower propagation time.

This may be the first time in the world a blockchain is using erasure coded blocks which is allowing the unbelievable 1.8 second miniblock propagation time while maintaining efficient node storage for even low power devices to participate.

Pruned Nodes

Ability to prune the memory tree of the DERO node. We can maintain the security and decentralisation of running full nodes but reducing the storage requirements and keeping them lightweight to run on any device.

This will allow faster sync speeds and lighter nodes heading into the future. Eventually the core will be pruned nodes.

I hope you can see DERO is a collection of all the latest cutting edge cryptography and technology known to Man. It has been precisely weaved together to create a platform that will see no competitors for the next 5 years, if there ever is one...

Every avenue has been researched with DERO, and the most effective, simple, secure, private, lightweight, scalable, decentralised, trustless platform possible to create has been created. DHEBP launched February 26 2022

Medium article for ease --> documentingdero.medium.com/what-is-dero-a…

$DERO

Shoutout to the amazing community who I learn lots from and to Captain Dero who has inspired me to learn more and more.

This is a lot so it might not be perfect but it's close.

Hey @sethforprivacy your for privacy right?