Technical

From a technical standpoint, Relinx Network leverages a range of cryptographic technologies, including Taproot, Multi-Party Computation (MPC), and Verifiable Assertions, to bolster the security of custody and efficiency of the Bitcoin network, ultimately establishing a global consensus layer. These cryptographic tools are strategically implemented for decentralized self-custody mechanisms, verifiable custody commitments, and dynamic custody allocation commitments.

Trustless Self-Custody

Trustless Self-Custody is constructed with Taproot to implement a new model of Bitcoin custody. In this model, the control of assets always remains with the user but the user cannot arbitrarily end custody. This approach allows the user who provides Bitcoin for custody and the demand side for Bitcoin custody to not have to trust each other or any third party. It is executed technically via a taproot output with two script paths. One of the script-paths is a 2/2 multi-signature. Neither party can use the output alone, thus fully ensuring the user's control. The other is the Fallback Timelock, controlled only by the user's public key.

This is just a rough description, the actual implementation is more complex. Let us explain briefly. We chose to use Taproot because it provides sufficient extensibility, and due to its lower transaction fee, it is more economical.

Let’s make it more clear. Taproot makes it easier to introduce complex commitments by incorporating the Merkleized Abstract Syntax Tree (MAST) structure. MAST allows the inclusion of multiple spending conditions within a transaction, without revealing any unnecessary information. Each condition is hashed and organized in a Merkle tree, and only the branch associated with the executed condition is revealed during the transaction. This way, complex commitments can be introduced without compromising transaction efficiency or bloating the blockchain.

Moreover, Taproot offers substantial privacy improvements. In a Taproot transaction, regardless of how complex the actual scripting might be, it appears on the blockchain as a single, standard transaction. This is possible because all potential spending paths are hashed into a single public key, which is what appears on-chain. This uniformity masks the complexity of transactions and makes them indistinguishable from regular transactions, significantly improving privacy.

Accountable Custody Commitments

Accountable Custody Commitments enhance security by incorporating accountability mechanisms. This feature allows for any malicious actions to be traced back to the party responsible, ensuring transparency and accountability. This provides businesses with a secure environment, where all actions are monitored and any misconduct can be identified and addressed effectively.

Accountable Custody Commitments incorporate the technology of Hashed TimeLock Contracts (HTLC) and accountable assertions, providing a high-performance solution while ensuring security. The HTLC allows secure, conditional transactions, creating an additional layer of protection and accountability. It enables parties to collaborate without having to trust each other, with the transaction being enforced by bitcoin scripts. Indeed, our implementation of Accountable Custody Commitments is achieved because the use of custody requires quick and multiple versions, which we refer to as "commitments". These commitments ensure the fast allocation of managed assets without jeopardizing security. This unique system enables the efficient operation of custody resources based on the specific needs and demands of users and projects. Accountable assertions further enhance the system's accountability by ensuring that any misbehavior will be punished, but good nodes will not lose any assets. This combination of HTLC and accountable assertions results in a system that is both efficient and secure.

Custody Allocation Commitments

The Dynamic Custody Allocation Protocol aims to offer a flexible method for managing the use of custody. This protocol includes Custody Allocation Commitments and Profit Allocation Commitments, providing an efficient and secure way to manage both custody and profits.

Custody Allocation Commitments are a part of the Dynamic Custody Allocation Protocol, aimed at offering a flexible way to manage the use of custody. These commitments utilize hash-locking and multi-party payment channel technology, allowing for efficient allocation of managed assets without compromising security. From a business perspective, this allows for real-time adjustment of custody allocation based on changing requirements, offering a dynamic and adaptable solution for managing resources. This ultimately leads to efficient operation of custody resources based on user and project demands, offering a highly flexible and efficient system for asset management.