MatterFi in Davos 2022 with Mehow

Summary

Mikhail Posbiazolski, CEO of Matter Phi, introduces a revolutionary digital asset management tool with over a hundred chain integrations and fast transaction speeds. The system emphasizes client and server-side security, eliminating usernames and passwords, and features a unique off-chain system with cryptographic proofs. Key innovations include secure access applications, a universal wallet supporting multiple currencies, and a multisig node architecture for enhanced custody solutions. The system aims to simplify user onboarding and provide autonomy, allowing users to prove their balances even if the server disappears.

Takeaways

• 😀 The CEO of Matter Phi, Mikhail Posbiazolski, demonstrated a digital asset management tool developed for the Casper Association, highlighting its ease of customization and support for over a hundred different blockchains.
• 🔐 The tool emphasizes client security by using private keys for all transactions, eliminating the need for usernames and passwords, thus reducing the risk of phishing, spoofing, and man-in-the-middle attacks.
• 💼 Server-side security is enhanced as the system prevents insider theft, with smart contracts controlling assets and only acting on behalf of the user when their signature is recognized.
• 🔒 The system is designed to be resistant to both external hacker attacks and insider or founder attacks, providing a high level of security.
• 📝 Users have autonomy as they receive cryptographically signed receipts for all transactions, allowing them to restore their account state at any time.
• 🚀 The system offers high transaction speed and reliability, with real-time processing and no mining required, making it efficient and secure.
• 💡 A unique feature of the wallet is the use of 'payment codes', which allow for anonymous and traceable transactions, enhancing privacy and providing proof of funds for regulatory compliance.
• 📱 The wallet supports multi-currency transactions with a single payment code and can be linked to human-readable addresses, such as gamer tags, for easy and secure transfers.
• 🛡️ The system includes a multisig node architecture for custody solutions, which is more secure than traditional single-key systems and allows for hybrid on-chain and off-chain smart contract operations.
• 🌐 The wallet is designed to be a 'universal wallet', capable of supporting a wide range of currencies and tokens, making it versatile for various user ecosystems.

Q & A

What is the primary function of the digital asset management tool developed by Matter Phi?

The digital asset management tool developed by Matter Phi is designed for ease of customization and supports the integration of over a hundred different blockchains, offering off-chain and on-chain capabilities with super fast transaction speeds.

How does the use of private keys in the Matter Phi system enhance security?

Using private keys for all transactions in the Matter Phi system eliminates the need for usernames and passwords, reducing the risk of phishing, spoofing, and man-in-the-middle attacks. It also provides server-side security, making it nearly impossible for external hackers to execute attacks and difficult for insiders to steal funds.

What is the significance of the cryptographic proof of off-chain funds in the Matter Phi system?

The cryptographic proof of off-chain funds allows end users to have proof of their assets, which is valuable for compliance with KYC/AML regulations. It also provides autonomy, as users can restore their own state at the bank by showing their receipt stream.

How does the Matter Phi system ensure fast transaction speeds without mining?

The Matter Phi system has eliminated mining from its protocol while maintaining security, which contributes to its fast transaction speeds. All operations run in real-time, enhancing speed and reliability.

What is a 'Payment Code' in the context of the Matter Phi wallet?

A 'Payment Code' in the Matter Phi wallet is an innovative feature that allows users to receive any cryptocurrency worldwide without revealing the amount sent. It also provides cryptographic proof of funds for compliance purposes.

How does the Matter Phi wallet's multi-currency support work?

The Matter Phi wallet supports multiple currencies through a single payment code, enabling users to receive various cryptocurrencies like Casper, Ethereum, and Bitcoin with a single identifier, which can also be tied to a human-readable address for ease of use.

What is the role of 'C Filters' in the Matter Phi wallet's Bitcoin client?

C Filters, or 'Casper Filters,' are summaries of the blockchain used in the Matter Phi wallet's Bitcoin client. They prevent privacy leakage by ensuring all wallets receive identical filter sets, allowing for quick syncing of large blockchains like Bitcoin.

Can the Matter Phi system be used for institutional as well as retail purposes?

Yes, the Matter Phi system is designed to be versatile, catering to both institutional and retail users. It can create a network of instant transfers for various use cases and is adaptable to different business requirements.

How does the multi-sig feature work in the Matter Phi system for institutional use?

The multi-sig feature in the Matter Phi system allows for multiple hardware chips or servers to be part of a signature group, requiring a certain number of approvals to execute a transaction. This enhances security by preventing single points of failure and fraud.

What is the significance of the 'Triple Sign Receipts' in the Matter Phi system?

Triple Sign Receipts are a modified accounting method used in the Matter Phi system to prove the state of the system. They allow users to prove their balances even if the server disappears and can be used to restart the server with the last set of receipts.

Outlines

00:00

🔐 Introduction to Digital Asset Management and Casper Wallet

The speaker, Mikhail Posbiazolski, CEO of Matter Phi, introduces a digital asset management tool developed for the Casper Association. The tool is highlighted for its ease of customization, support for over a hundred different blockchains, and fast transaction speeds. The presentation aims to demonstrate the practical application of the technology, focusing on the Casper Wallet and its unique features that enhance security, compliance, and efficiency in digital asset management.

05:01

💼 Secure Access Applications and Casper Association Wallet

The speaker demonstrates the Casper Association Wallet, emphasizing its user-friendly interface and robust security features. The wallet is shown to be a part of a larger ecosystem of secure access applications (SAPs), which include a matching hardware wallet for easy transactions. The wallet's innovative payment codes are introduced, allowing for private and secure transactions, and the concept of a multi-currency wallet is explained, showcasing its ability to handle various cryptocurrencies with a single payment code. The presentation also touches on the wallet's advanced Bitcoin client, which uses custom-written technology to ensure privacy and quick synchronization.

10:02

🔗 Multisig Nodes and Hybrid Smart Contract Ecosystem

The final part of the presentation discusses the multisig nodes, which serve as a secure custody solution for digital assets. The speaker explains how these nodes work in conjunction with hardware chips and smart contracts to provide a secure and autonomous system. The system's ability to operate independently of a central server is highlighted, with users able to prove their balances even if the server disappears. The presentation concludes with a discussion on the system's potential for institutional use, its adaptability to various business needs, and the speaker's openness to various use cases, including the possibility of setting up multi-sig transactions within an institution.

Keywords

💡Digital Asset Management

Digital Asset Management refers to the process of organizing, storing, and tracking digital files and content. In the context of the video, this concept is central as the CEO of Matter Phi discusses their digital asset management tool, which is designed to be highly customizable and support integration across various blockchains. This tool is showcased as a solution for managing digital assets securely and efficiently.

💡Blockchain

Blockchain is a decentralized, distributed ledger technology that allows data to be stored across a network of computers in a secure and tamper-proof manner. The video mentions blockchain in relation to the digital asset management tool developed by Matter Phi, which supports over a hundred different blockchains, highlighting the tool's versatility and extensive applicability in the crypto space.

💡Casper Wallet

The Casper Wallet is a specific application of the digital asset management tool being demonstrated. It is designed for the Casper Association and is highlighted for its ease of use and security features. The wallet is part of the broader discussion on how digital assets can be managed and transferred securely, emphasizing the importance of user-friendly interfaces in the adoption of blockchain technology.

💡Private Key

A private key in cryptography is a secret number that allows users to prove ownership of a cryptocurrency or a digital asset without revealing the ownership to others. In the video, the presenter explains that all transactions in their system are signed with a private key, which enhances security by eliminating the need for traditional usernames and passwords. This is a fundamental concept in the video, as it underscores the system's focus on client security.

💡Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically execute transactions when the conditions in the agreement are met. The video discusses how smart contracts control addresses in their system, ensuring that assets are only moved when the correct private key signature is provided, which is a significant aspect of the security and autonomy features of the platform.

💡Off-Chain

Off-chain refers to transactions or computations that occur outside of the main blockchain. The video mentions the importance of an off-chain system based on cryptographic proofs for achieving the security and efficiency claimed by the digital asset management tool. This concept is crucial for understanding how the system can provide fast transaction speeds without compromising on security.

💡Payment Codes

Payment codes are a feature of the wallet that allows users to receive any cryptocurrency worldwide without revealing the amount being sent. This concept is introduced as an innovation that enhances both usability and privacy, as it allows for public sharing of a code while keeping transaction details private. It also has implications for Know Your Customer (KYC) and Anti-Money Laundering (AML) processes.

💡Multisig Nodes

Multisig nodes refer to a requirement for more than one signature or key to authorize a transaction. In the video, the presenter describes a custody solution involving multisig nodes, which adds an extra layer of security by requiring multiple approvals for transactions. This is an important aspect of the system's architecture, as it prevents single points of failure and enhances asset protection.

💡Cryptographic Proofs

Cryptographic proofs are methods used in cryptography to verify the authenticity and integrity of data. The video emphasizes the use of cryptographic proofs throughout the ecosystem to ensure the security and autonomy of transactions. This concept is integral to the system's design, as it allows for the verification of transactions and the protection of user assets without the need for a centralized authority.

💡C Filters

C filters, or Casper filters, are a custom implementation mentioned in the video that replace traditional Bloom filters in the Bitcoin client. They provide summaries of the blockchain to wallets, ensuring identical views across all clients and preventing privacy leaks. This innovation is part of the broader effort to enhance privacy and security within the digital asset management tool.

Highlights

Introduction of Matter Phi's digital asset management tool with support for over a hundred different chains.

Matter Phi's tool offers easy customization and integration for both on and off-chain transactions.

Super fast transaction speeds are a key feature of the tool.

Mikhail Posbiazolski presents a unique technology for the Casper Association's wallet.

The technology facilitates distributed disintermediation while ensuring regulatory compliance.

Matter Phi's system uses private keys for all transactions, enhancing security.

Elimination of usernames and passwords reduces the risk of phishing and spoofing.

Server-side security is enhanced, preventing insider theft of funds.

External hacker attacks are made extremely difficult due to the system's design.

Users have autonomy and can cryptographically prove their off-chain funds.

The system allows for high transaction speed and reliability without mining.

Matter Phi's technology is built on cryptographic proofs, differentiating it from traditional blockchain.

Secure Access Applications (SAPs) are introduced for client-side security.

Hardware access devices and secure applications are used for transaction execution.

Payment codes are introduced for easy and private crypto transactions.

The wallet supports multi-currency transactions with a single payment code.

Innovation in the Bitcoin client with custom-written C filters for privacy and speed.

Multisig nodes are used for a superior custody solution compared to traditional single key systems.

The system allows for hybrid on-chain and off-chain smart contract execution.

Users can prove their balances and restore their state even if the server disappears.

The system is designed to be adaptable to various use cases, from retail to institutional.

Matter Phi is open to various use cases and is currently raising funds for further development.

Multisig functionality allows for multiple tap cards or signatures for institutional transactions.

Transcripts

perfect all right next up it's always

nice when you get to see some products

in action so we figured we'd uh give you

the joy of watching another product demo

so it's my

very very great pleasure to welcome

oh i hope i said that right he's the ceo

of matter now matter phi has developed a

digital asset management tool that's

easy to customize you support the

integration of i think over a hundred

different chains which is

quite the feat i would say you work on

and off chain and you have super fast

transaction speed so i think everyone's

excited to see it in action please

welcome mikhail posbiazolski thank you

so much it's a terrific intro

so what i'm going to show you today is

a little piece of tech that we're

developing for casper association namely

their the casper wallet

and then i'm going to show you some

additional pieces of technology that i

think anyone that's attending

wef would find really interesting

because they really

helped

with

distributed disintermediation at the

same time letting everybody comply

regulatory so we have a very unique

thing that does not exist anywhere else

and we're the inventors of it you know

me and my team so um

the the way i start this off always is i

make a very simple example which a lot

of you guys are going to be like oh man

that's really pedantic because you guys

in here know crypto but everybody else

outside watching may or may watch this

video in the future doesn't right so

the biggest and best way to explain

how our stuff is different than

everything else is like you know how in

bitcoin you got to whip out your private

key and sign a transaction right to do

anything so to move your funds in our

system everything that you do

is signed with a private key so what

this does means is that if you're for

example trying to transfer an account

balance from point a to point b in your

bank

you're going to do that with your

private key

right so everything happens with a

private key and why would you want to do

such a crazy thing well there's like

four huge advantages to doing this first

of all it's client security so

i'm a lifetime hacker i start hacking at

15 i've hacked everything legally from

from

airliners to uh electronic voting

machines you know

and uh and i've always wanted to make a

thing that i couldn't break and this

this was it right so four things that it

does generally that i think are really

really fascinating one is that there's

no user names and passwords so they

can't be fished spoofed stolen man in

the middle of any of that right it means

that even when you access like an app

that you're used to using there's no

username and password you're using a

private key in in everything that you do

right second thing is server side

security the way we work the custody

system in our implementation you you

can't as an insider say you're the admin

of an organization you can't steal the

money

right and that happened at mount gox it

happened at quadriga cx it's happened

like 15 other times right why because

you as a consumer are giving your

bitcoin your crypto your assets to some

address and ultimately somebody controls

that address in our system smart

contracts control that address and they

only act on your behalf when they see

your signature right so um in external

hacker attacks are nearly impossible in

our system extremely difficult to

execute

to the point where i wouldn't know how

to break it

i could give you a plan but i you

probably wouldn't be able to do it um

and then insider like founder attacks

are also extremely difficult it's really

obvious if something disappears

the end user and i'm gonna get to this

the end user has cryptographic proof of

the off chain funds that they had which

is really cool

because these days right this brings me

to autonomy which is the third point

these days

if your bank says you don't have the

money that you think you have you have

no recourse

right they're just like they have your

money

in our system when you do a withdrawal

you do deposit you get a

cryptographically signed receipt in fact

you can restore your own state at the

bank

by just showing your receipt stream so

our system is very different and i'm

gonna give you a quick couple examples

and the last thing that it does that's

really cool is the ability to have a lot

of speed a lot of uh um and a lot of

reliability okay and

uh because all our stuff runs in real

time there's no mining we've eliminated

mining from our protocol

and it's still secure so

it know why would you want to

if if you can make a thing that's this

cool why hasn't anybody done it yet

and the answer that question is to do it

you have to have an off chain system

based on cryptographic proofs on top of

all the stuff you're used to in

blockchain where everything is a

cryptographic proof the whole thing the

whole ecosystem has to be cryptographic

proofs

okay so i'm going to show you two

components to this i'm going to show you

the hardware access devices and the

secure application right now so mark if

you could roll the video in the back

that'd be awesome so we're going to

start off with the client side which is

the left side of this diagram right so

we call them secure access applications

saps nothing to do with sap to company

because it's not just a wallet our first

customers are in fact wallet users so

keep on going this is the casper

association wallet in action here um so

stop right there

um

one of the things we do is we make it

also a matching hardware wallet that's

white label so this is our customer

space dogs they have a little wallet

card they've got like five different

ones they design and this still

stores the private keys so it means that

all you do is just tap on your phone to

execute anything that you want so as a

business you tell us here's what we want

to do and then we give you the tools to

be able to implement this to your end

users so keep going so this in this case

it's it's asking whether you want to

restore from a hardware wallet

um and then if you're not it is asking

you to restore from a seed phrase so so

you know this my developer is doing a

test here

and if not that

then it goes into

hey we're going to randomly generate a

seed phrase for you right which is

actually generated if you if you have

this option it's generated from

radioactive

random radio wave entropy off the chip

incredibly secure right um

we actually have diffie-hellman

encryption that we

this is all and this chip by the way is

patented um

between the software wall and the

hardware wallet

which is like i took it to def con and i

explained how it works and i showed a

protocol log and no one wanted to break

it

they were like okay well it's not going

to happen so um keep going

mark

there we go all right so in a second

he's we're going to click on show pay

code so in here it's paused right there

cool um so this wallet has uh is casper

and a bunch of other assets so keep

going for a second until he clicks the

show pay code mark

we go boom stop right there okay so this

is one of our first innovations the

whole point of making this work is we

got to make it easy to use and easy to

onboard right and that's actually very

difficult so we've solved all those

custody problems and usability problems

and this the first thing that we did in

usability was payment codes what are

payment codes if i have your payment

code i can send you any crypto worldwide

and no one else knows how much money i i

sent you so you can post it on your

instagram

and receive money

the payment code can also be used for

kycml i'm not going to go into right now

how to do that because i don't have the

time but you have cryptographic proof of

funds that you send on chain if you're

an institution that's incredibly

valuable

because right now kycml is just like hey

uh i hope i hope that receiving address

you gave us is actually you

but we don't know right um keep going

so in our system you have the ability oh

well this is a silly feature this is fun

you can change logos

groundbreaking i promised you

groundbreaking technology

i'm delivering

um so now he's going to show pause right

there mark and you can just leave it

right there we're not going to keep

rolling so it's a multi-currency wallet

so with a single payment code you can

get casper you can get ethereum you can

get all the ethereum tokens you get all

the casper tokens you get all the

bitcoin

and it's one single payment code which

we can also tie to a human readable

address so if like you're in the gaming

space and you've got a unique gamer tag

that can be tied to your payment code

and now the game company has a way to

transfer money super easily between its

users uh off chain all right so and the

last thing i want to talk about there is

an innovation in this wallet where we

completely redid the our bitcoin client

it's custom written we don't use bloom

filters we use our own implementation

called golem rice sets and we call them

c filters and what c filters are is

summaries of the blockchain so that

there's no accelerator server that's

revealing oh oh you want this block and

this block very very interesting the c

filters go out to all the wallets and

they're all identical

so the wall so there's no privacy

leakage at all and because the c-filters

are all identical we can catch them

which we patented this part of it and uh

means that we can sync a huge chain like

say bitcoin uh extremely quickly in a

matter of minutes

right so that's why our wallet is you

know me and metta uh from from casper

call the universal wallet because the

point is to get as many currencies as

are useful for each particular

customer's ecosystem all right i got two

minutes so go back to the slide and i'm

almost i think i'm gonna finish my time

this is amazing

okay so um we talked about the two left

components what's the thing in the

middle the multisig nodes right so this

is our custody solution so this is uh i

would say far superior in architecture

to say a fire blocks because in fire

blocks there is a key and then the key

gets reconstituted and there's all this

security around that single key or set

of single keys in our case we have a

payment code that's kycml that goes to a

multi-sig group of servers so to steal

the money off of off these off chain

servers you have to break into the

hardware chips

on say if you set it up as a pool of

7-eleven you have to break into 7 out of

11 hardware chips but these chips don't

just store private keys they're also

secure enclaves for your smart contracts

so now your business is always running

the same smart contract in fact this

multi-sig node pool can connect in a

hybrid manner to regular smart contracts

that run on chain so you can have an

ecosystem where hey you don't want to

pay all those ethereum mining fees you

don't have to you can run a portion of

your smart contract off-chain right so

that's so

bunch of really amazing properties to

this and the system runs off triple sign

receipts uh we modified the classic

extra accounting triple sign receipt

thing and then we wrote a white paper on

it got cited by a bunch of academics but

our system proves its state by the last

set of receipts so this is the autonomy

part of it like the server can literally

disappear and the users can prove their

balances on the server that disappeared

and the server can be restarted right

which is really cool because right now

if the blockchain goes away

you're screwed unless you've got you

know a huge backup maybe somewhere right

but uh in our case that's not that

that's not the case so you can execute

any functionality you want cryptography

secured servlets and so like one of the

things we're uh implementing is active

spec which is uh banking all right

that's

the presentation i finished it nine

minutes and 55 seconds

cool we've got time for a question yeah

yeah we have some time for questions the

the powers that be are

um saying we got questions

and mihawk heider at kevin o'brien

luxury capital how would you um

distill

what this actually means like for me

from a retail perspective it's almost

like cash app but it's also an

institutional product can you explain

how you teach this uh to the general

community probably the seven minute

pitch i just gave you is the closest

densest thing i could possibly do but

you just got it

what you said to me is it sounds like

it's a cache app but also sounds like

institutional it is exactly that like

you can create a network of instant

transfer it's like lightning network

except for every chain every token ever

but it doesn't just do payments it does

everything right so what the way we

engage is like we go to a client a

business and say okay what do you want

to do with the system and then we just

keep saying yes

and

and because there's so far i haven't

gotten a use case i can't handle you

know um

also we're doing a uh

a bridge round right now so if you wanna

you wanna if you wanna join let me know

cool any one more question yeah

is there a multi-sig angle to this as

well like can i have multiple

tap cards amongst my institution uh

amongst the partners of my institution

to sort of sign a multisig transaction

so so um

do you remember how i just said did i

say yes to everything absolutely yeah

yeah something but the answer is yes

like you can you can set up the custody

on your own however you want the

defaults the servers autonomously run

with with private keys and the founders

put the private keys in their safes like

say it's five out of seven and then no

one internally can steal the funds not

only do the clients know they have money

and they can prove it but the business

knows that it can't be defrauded through

some fault of i.t

right beautiful yeah thank you cool all

right thank you guys really appreciate

it thanks davos thanks casper and thank

you for the time

[Applause]