An Upgraded, Cost-effective Version of MultiSig Scheme
To solve the problems of cost and scalability in MultiSig scheme, Muon has implemented a Threshold Network using Threshold Signature Scheme.
In TSS, contrary to the common practice in the MultiSig approach, signatures are not produced individually by the signer and then collected and submitted to smart contracts in a transaction. Rather, signers collaborate off-chain to produce a single signature whose sending and on-chain verification have a low fee regardless of the number of signers. Having numerous signers at the cost of only one allows making use of more nodes in the Muon oracle network, which leads to higher security. TSS was deployed in Muon V0.2 in mid summer 2022.
When a user requests data, the dApp sends a data request to one of the nodes in the Threshold Network as the gateway node. The gateway node fetches the data from a source, forwards it to to the other nodes in the Threshold Network, and asks each node for its share of the signature. These check the received data at a source and return their shares of the Threshold signature. If a predefined majority of the nodes, for example 15 out of 20, sign the data and send it to the gateway node, it aggregates them and sends the data with the Threshold signature to the dApp client. If not, the gateway node returns a "failed" response.
The following sequence diagram illustrates the step-by-step procedure for the Threshold network. Click on it to get a higher resolution.
Requesting Data from Muon's Threshold Network
Threshold Signature Scheme is pioneering innovation which has made Muon a secure, decentralized and scalable oracle network. Although TSS is promisingly secure, it has a new and complex cryptographic algorithm and some may find this a concern. That is why Muon has devised two other security layers to guarantee the reliability of its responses. Read on to learn more about them.
To learn about how the Threshold Network can be randomly divided into Rotating Threshold Subnets, see here.