Files
papers/lux-sovereign-keys/sections/04-mpc-for-threshold-control.tex
zeekay 0cb5a945ca chore: scrub white-label tenant company name from papers
Genericize every reference to the white-label tenant tenant to 'a
regulated exchange partner' / 'regulated-partner' across the ZAP-wire
migration paper (workspace + service counts + ownership), the avalanche-diff
translation wallet/stack lists, the sovereign-keys regulated-model tables,
the block-STM workload label, and the 4.0-launch resale/deployment lines.
Hard brand strings (the tenant, the tenant, tenant EVM/DEX) were already
absent on origin/main; this removes the lingering company name. Legitimate
DeFi 'liquidity' terms and the Lux Liquidity Protocol (LP-310) are untouched.
2026-06-26 05:08:31 +00:00

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2.3 KiB
TeX

\section{MPC for Threshold Control}
\label{sec:mpc}
\subsection{Same Primitives, Different Trust}
The sovereign model uses the same threshold signing protocols as the
regulated model (CGGMP21 for ECDSA, FROST for EdDSA). The difference
is who controls the signers:
\begin{table}[h]
\centering
\small
\begin{tabular}{@{}lll@{}}
\toprule
\textbf{Property} & \textbf{Regulated (exchange partner)} & \textbf{Sovereign (Lux)} \\
\midrule
Shard holders & Operator + HSM + cold & User + trusted parties \\
Threshold & 2-of-3 (operator is 1) & User-defined $t$-of-$n$ \\
Operator shards & 1 (below threshold) & 0 \\
Recovery & Operator cold storage & Social recovery \\
Key generation & Operator-initiated DKG & User-initiated DKG \\
\bottomrule
\end{tabular}
\caption{MPC trust model comparison.}
\label{tab:mpc-comparison}
\end{table}
\subsection{User-Controlled Signers}
In the sovereign model, the user initiates distributed key generation (DKG)
and designates the signer set. Typical configurations:
\begin{itemize}[nosep]
\item \textbf{Personal}: 2-of-3 with user device, backup device, and a
recovery share held by a trusted contact.
\item \textbf{Organization}: 3-of-5 with board members as shard holders.
\item \textbf{DAO}: $m$-of-$n$ with on-chain governance controlling
signer rotation.
\end{itemize}
The provider holds zero shards. The provider cannot sign, cannot veto,
and cannot participate in signing.
\subsection{Social Recovery}
If the user loses their device, recovery uses threshold shares distributed
to trusted parties at vault creation time. The recovery protocol:
\begin{enumerate}[nosep]
\item User contacts $t$ of their $n$ designated recovery parties.
\item Each party authenticates the user (out-of-band: video call, in-person,
pre-shared secret).
\item Each party submits their recovery share to the new device.
\item The new device reconstructs the root key from $t$ shares.
\item The root key decrypts the vault DEK; all data is accessible.
\end{enumerate}
No operator involvement. No ``forgot password'' flow that bypasses
encryption. If the user cannot reach $t$ recovery parties, the data is
permanently inaccessible. This is the intended behavior: data sovereignty
means the user bears the responsibility.
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