August Newsletter 2019

August Newsletter 2019

August was a month of debugging, testing, and hardening code. The security audit is now complete. The feedback was that the quality of the code was very high, well structured, and designed. Five vulnerabilities were identified of which only one was assessed as high and one as medium, though no issues were found that could cause a delay to the release of Tritium. Independent Security Evaluators (ISE) have also provided us advice about keyloggers which is discussed below. They will be conducting a final assessment to provide a seal of approval that the above issues are resolved, after which we will announce the release date of Tritium and the corresponding activation timestamp. For more information on the details of the audit, please watch our latest Zoom meeting.

Zoom Meeting 20th August

Upgrade Procedure 

We have officially decided to end support for all v2.5 versions of the Legacy Qt Wallet. Please move to the Tritium wallet as soon as possible. When Tritium activates on the main network, you will no longer be able to stake with a legacy wallet, you will have to stake using your Signature Chain. The upgrade procedure will be as simple as loading the new wallet. You will be able to migrate your trust to your new Signature Chain by using the command line API, or via a migration button in the Nexus Wallet.

Wallet Update

Version v1.2.2 was released to fix small issues with the transaction page refresh, time filter, and some adjustments to the overview page. This update also includes two high priority security updates. These have been made in conjunction with the security audit. Please download the new wallet here:

Nexus Wallet

Testnet

The new Tritium testnet number will be 13 which will go live on Monday, September 2nd. If you would like to join the testnet, add -testnet=13 to your config file or command line, and your node will automatically connect and sync to the test network. Please pull the latest code from the ‘merging’ branch when joining the testnet https://github.com/Nexusoft/LLL-TAO/tree/merging. We would also encourage you to join the #tritium-testnet channel in the community slack where you can post questions or provide feedback/bug reports. 

Network Attack

On Friday 9th August, the Nexus network was subject to an attack allowing the attacker to generate blocks with an arbitrary coinbase reward. At approximately 8am UTC, the team was made aware of reports that Tritium nodes on the network had dropped out of sync at block 2778365. We started our investigation and found that this was due to the error “block 2778366 ambassador signatures invalid”. This check makes sure that the ambassador rewards — which are included with each coinbase block — are paid to one of the 13 hard-coded ambassador keys. The error suggested that the block had simply been constructed with an invalid ambassador public key in the coinbase, but upon investigation of the data, this was not the case — the ambassador key in block 2778366 appeared to be valid. For more information please read the article below. 

9th August Network Attack

Keyloggers 

We protect against viruses that read your wallet’s memory by encrypting your Signature Chain in memory. Even though this technique is useful, the threat of keylogging still exists if a virus is monitoring keystrokes. Due to this, we have been looking at solutions to protect your wallet against keylogger attacks. After a discussion with the security team at ISE, we were informed of different techniques that could be used to protect Signature Chain credentials. We have requested that this information be compiled into an easily digestible report to aid us employ some of these methods to further secure Signature Chains against keyloggers beyond the use of password managers. 

Signature Chains 

Below is new content published to the website about ‘Signature Chains’ which are used to create a decentralized blockchain account, accessible through a username, password, and pin. They are the foundation of a Digital Identity for managing assets, while maintaining pseudo-anonymity for privacy. In our opinion, Signature Chains are an important step for mainstream adoption of blockchain, given that users will no longer have the burden of storing private keys.

Signature Chains 

Digital Rights Management 

With Tritium, any type of digital asset can be registered on the Nexus Blockchain. Our new technology includes, digital licensing, Signature Chains, digital watermarking, tokenization, a Decentralized Exchange (DEX), and automatic royalty payments.

These collectively support agreements between a digital asset owner (licensor) and a purchaser (licensee). This true peer-to-peer exchange will provide a more efficient, accurate and secure way for exchanging value in the creative industry, and could possibly result in higher revenues to creators. Read more in the article below:

Digital Rights Management ~ Royalties & Licensing of Digital Assets

Fees

Discussions have taken place regarding the fee structure for Tritium. The below fees are close to being finalized, so please submit your input or requests for changes in the economics working group before the final Public Testnet (September 2nd, 2019). The suggested fees are as follows: 

Creating an unnamed account = FREE

Creating a named account = 1 NXS

Creating an asset/item (any object register storing user defined data) = 1 NXS

Creating a token:

The fee for creating a token is based on the number of divisible token units in the token supply. The token fee is still undecided, below we present two models. The first model is exponential, the second is linear. 

The exponential approach is 1.5 NXS per figures cubed:

Token Units

100 = 12 NXS

1000 = 40 NXS

10000000 = 514 NXS

100000000000 = 1996 NXS

1000000000000000 = 5062 NXS

10000000000000000000 = 10288 NXS

Fee = log10(nSupply)^3 * 1.5 NXS

The linear approach would charge 100 NXS for each significant figure above 100:

Token Units

100 = 0 NXS

1000 = 100 NXS

1000000 = 400 NXS

10000000000 = 800 NXS

100000000000000 = 1200 NXS

1000000000000000000 = 1600 NXS

10000000000000000000 = 1700 NXS

Fee = log10(nSupply) * 100 NXS

The above term ‘token units’ is defined as the number of figures used, meaning that the registration of a token with max supply of one whole token that is divisible to two decimal places would translate to 100 token units. 

Registering a local name (including when creating a named account or any named object) = 1 NXS

Registering a namespace = 1000 NXS

Registering a global name = 2000 NXS

Debit/Credit transactions = FREE

Transfer/Claim transactions = FREE

Object Register Update transactions = FREE

Q&A With Alex El-Nemer

Alex El-Nemer, director of the U.K. Embassy is holding a Q&A session in Slack at 1pm PST, Friday August 30th, 2019. He will be answering questions about how the Business Development team is progressing, so please make sure to drop in Slack if you’d like to speak to him!

Twitter Giveaway 

The winners of the Twitter giveaway were yugioh, cryptolegend10, ladjjn & cryptoBison. Thank you for your brilliant tweets, and a big thank you to mikecasey for funding the prizes, and jayden for his support.

We all appreciate your continued support and encouragement, 

The Nexus Team.

Digital Rights Management ~ Royalties & Licensing for Digital Assets

Digital Rights Management ~ Royalties & Licensing for Digital Assets

With the release of the much anticipated Tritium network upgrade, any type of digital asset can be registered on the Nexus Blockchain. Our new technology includes, digital licensing, Signature Chains, digital watermarking, tokenization, a Decentralized Exchange (DEX), and automatic royalty payments.

These collectively support agreements between a digital asset owner (licensor) and a purchaser (licensee). This true peer-to-peer exchange will provide a more efficient, accurate and secure way for exchanging value in the creative industry, and could possibly result in higher revenues to creators.

Digital assets include, but are not limited to:

  1. Music , Audio Books, E-books
  2. Graphics & Photography 
  3. Film, TV shows
  4. Games, Software and Apps

Digital Licences

When a digital asset is recorded on Nexus it is witnessed by a distributed consensus on the Nexus Blockchain. This makes the proving of asset ownership easy, and introduces the added functionality of digital licensing. The benefits of licensing on Nexus are threefold: Digital assets can be watermarked and traced for authenticity, license agreements can be executed in a genuine peer to peer interaction, and payments can be tokenized to distribute revenue between asset owners. All of these are facilitated through the interaction of three key architectural components: Signature Chains, Registers, and Conditions.


Signature Chains

A Signature Chain is a decentralized blockchain account that is accessible through a username, password, and pin. This identity layer is important for the managing of assets and digital licenses, whilst maintaining pseudo-anonymity for privacy. 

In our opinion, Signature Chains are an important step for mainstream adoption of blockchain technology, given that users will no longer have the burden of storing private keys. Please see Signature Chains for more information.


Registers

Registers are a data storage system that maintains an immutable record and history of all its current and previous states. Registers can act as assets, accounts, tokens, or any other object that requires a persistent state to be maintained. An asset is in essence a register with specific data formats. E.g:

Image ID: 108629084398374

License Type: Enhanced 

Image title: Arizona Sunset 

The above example displays a simple meta-data format for a photographic asset that is stored in a programmable object register. This format can be augmented with mutable and immutable type specifiers, meaning that a field such as ‘Image Title’ in the example above, could be mutable and able to be modified, while the other fields would remain immutable.


Conditions

Conditions are statements that are at the heart of a contract. Conditions generally disclose an agreement between the two pseudo-anonymous parties via Signature Chains, and outline a set of conditions that must be met for a transaction to be executed. This provides the building blocks of Nexus contracts, which stipulate the requirements for the contract to be fulfilled.


Digital Watermarking

With traditional methods of copyrighting, once a digital asset has been licensed, it is difficult to track infringement or misuse. Post-purchase, any digital asset (audio, film, text, software) can be registered to the blockchain, and contain an embedded watermark pertaining to a digital license. Watermarks can then be linked to a contract on the Nexus Blockchain, providing a way for purchasers to prove that the use of a digital asset is within the terms of their license agreement. With the use of a digital watermark reader, this technology can provide evidence of license violation. 

Though watermarked digital content is not a new innovation, linking said watermarks to licenses recorded on a blockchain is. This is a major step towards improving the overall security of watermarked content. In order for this technology to be of benefit to content creators, compatible media players, photo viewers and websites will need to be capable of verifying these watermarks. 

In the case of applications that do not support watermark verification, the watermark does not interfere with the quality of the original digital media, maintaining backwards compatibility with all existing media applications. Likewise, a reduction in quality or security will not be experienced by watermark enabled media players.

If you would like to view a demonstration application for watermarks, you can find it here on our source code repository:

Github-Watermarks

The intention of this technology is to provide independent creators and responsible consumers the tools to self-regulate, and ultimately rely less on third parties.


Legal Recognition

To see widespread use for blockchain enabled digital licensing, these assets and their ownership will require legal or common law recognition. Fortunately, the future looks promising, given that in some US states such as Arizona [Coindesk], a digital signature on the blockchain is already legally recognized.

Royalties 

Until now, tokens have mostly been used to raise capital in the form of Initial Coin Offerings (ICOs). Conversely, Nexus Tokens can either represent a store of value such as NXS, or enforce partial ownership in order to facilitate the payment of shared revenues for any asset. 

In the case of the creative industry, this tokenization model enables the automatic distribution of royalties to multiple owners of a digital asset. Examples of token holders include: musicians, models, actors, editors, producers, directors, scriptwriters, songwriters, writers, charities, graphics artists, seed investors, or anyone who had a share in the creation of the digital asset.

This will improve the process of distributing revenue to the relevant token holders, in a direct peer-to-peer manner, enforced by mathematics. This is in direct contrast to centralized intermediaries, whom often add both costs and time to facilitate transactions.

Please see Contracts and Tokens for more information.

Empowering Creators

Our new aforementioned innovations enable true peer-to-peer exchange by replacing traditional distribution channels. Our hope is that consumers will be provided with greater levels of transparency and flexibility, and that creators will have a greater say as to how their work is used, and be fairly rewarded.

A Vision of the Future

We see the future of digital licensing containing apps that allow anyone to look up an image (using technology like Google’s advanced image search), or an audio file (using technology such as Shazam), to find the available licensing, and with the click of a button the license is paid and distributed to all content creators. This will improve not only the mechanism for these licenses to be paid, but also the accessibility and transparency for the everyday user. Our innovations will ultimately bring creators and consumers closer together.

Read more:

The Nexus Ecosystem

API 

Nexus Contracts