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zeekayandHanzo Dev 70f6883235 Restore the regulated-markets papers; Lux holds the licences
A July commit removed eight papers on the premise "no license — DEX/non-custodial
only". That premise is wrong: Lux operates an ATS, a broker-dealer, a transfer
agent and a bank, and this material is resold at lux.financial. The merge that
brought main in preserved the removal because the commit stated a reason, which
is how a stale reason outlives the fact it rested on.

Back, at the versions main carried — main never received the removal, so its
copies are the later ones: the ATS architecture, the security-token standard,
smart order routing, institutional custody, MPC custody, post-quantum securities,
the SSB partnership and the CoinBridge brief. 83 files.

Co-authored-by: Hanzo Dev <[email protected]>
2026-08-30 15:58:05 -07:00

49 lines
2.1 KiB
TeX

\section{Key Rotation}
\label{sec:rotation}
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\begin{definition}[Proactive Resharing]
Given an existing $t$-of-$n$ sharing of key $x$ on polynomial $f$,
a reshare protocol produces a new $t'$-of-$n'$ sharing on a fresh
polynomial $g$ with $g(0) = f(0) = x$. The new shares are computed
by having each old signer contribute an additive share of zero
(a random polynomial $h_i$ with $h_i(0) = 0$). The new shares are
$g(j) = \sum_{i \in S} \lambda_i f(i) + \sum_{i \in S} h_i(j)$ for
each new party $j$.
\end{definition}
\begin{theorem}[Reshare Safety]
\label{thm:reshare}
Proactive resharing satisfies:
\begin{enumerate}[nosep]
\item \textbf{Public key preservation.} The aggregate public key
$X = x \cdot G$ is unchanged after reshare.
\item \textbf{Old share invalidation.} Old shares lie on polynomial
$f$; new shares lie on polynomial $g \neq f$. Old shares
cannot be combined with the new protocol state.
\item \textbf{No key reconstruction.} The secret $x$ is never
materialized during the reshare. Each party sees only its
own old share plus received shares-of-zero.
\end{enumerate}
\end{theorem}
\begin{proof}
(1) follows because $g(0) = f(0) = x$, so $x \cdot G$ is unchanged.
(2) follows because $g$ is a uniformly random polynomial conditioned on
$g(0) = x$, so the evaluations $g(j)$ are independent of $f(i)$ for
$j \neq i$. Mixing old and new shares produces interpolation over
inconsistent polynomials, which yields an incorrect secret.
(3) follows because each old signer generates their share-of-zero
locally (using fresh randomness), and the zero-secret polynomial
$h_i$ has $h_i(0) = 0$. The sum $\sum h_i(j)$ re-randomizes the
polynomial without any party knowing the full randomness.
\end{proof}
Key rotation is performed periodically (default: every 7 days) to
limit the exposure window. An attacker must compromise $t$ shares
within a single rotation epoch; shares from different epochs are
incompatible.
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