Future Of Decentralized Wallets For Bitcoin Is Here With Storm
Table of Content
Understanding The Storm System
Storm is an interesting project that seeks to revolutionize the development of a decentralized storage platform. The idea here is to facilitate the creation of decentralized wallets for networks like the Lightning Network and Bitcoin. Storm has arrived in the crypto world with a motto to facilitate the development of safe, decentralized applications.
With its arrival, now LN and BTC can provide more compatible and integrated decentralized storage options. However, the vision that Storm carries is not limited. Its goal is to create an organized and integrated ecosystem of decentralized storage options in the long term. Furthermore, it aims to create an ecosystem capable of optimizing the use of protocols while deploying smart contracts. This is the true intention of Storm depicting its capabilities.
In simple terms, Storm is a distributed storage and effective messaging protocol. For both Lightning Network and Bitcoin, it functions as a Layer 2 or even Layer 3. With an operating system created by Storm, nodes can share information within the system, similar to the existing structure of BitTorrent. However, Storm comes with an additional economic element that is crucial to sustaining the complete network.
It was on 16th August 2019 when this idea was first coined. Dr. Maim Orlovsky presented his idea and the efforts he made towards creating the RGB protocol. Operators are thought to store a small amount of the network’s data, and the entire collection can be made available to all. On top of it, this entire system is protected by Lightning Network or Bitcoin. Additionally, Storm operators have to run full nodes in these networks to be a part of the Storm protocol.
Working Of Storm
To understand the working of the Storm network, P2P encryption and data storage are the basis of its operation. The data is encrypted on the fly and stored on the operating system. It also came with a message-passing aspect, which allows for communication across nodes. To achieve better working efficiency, Storm optimizes the following technologies:
· Advance concept of Payment channels
· Testable & Probabilistic tests with better accuracy
· PSBT (Partially signed Bitcoin transactions)
· HTML contracts
· Transactions blocked by CVS
· Asymmetric key pairs with better data encryption
On top of this, there is a broadcasting process wherein packets are sent out to all nodes in the network. Networking requires a distributed storage mechanism in which P2P encrypted data can be stored and retrieved. In the Storm network that Dr. Maim Orlovsky designed, this task is accomplished using P2P encryption to store data locally or in a centralized location. Also, operators need to pay for their space and their access to the application to be able to use it.
Breaking Down The Working Of Storm
Storm has a relatively simple and secure working process that ensures a better experience for users. The P2P scheme of Storm is designed to avoid any sort of possible pitfalls. For this, certain provisions and requirements need to be fulfilled before making any transaction with it. When someone makes a payment with this system, Storm processes every transaction in different phases instead of processing it immediately.
This helps to ensure better compliance with some specific conditions. First of all, every transaction has to be signed by the sender and confirmed by the receiver. This ensures that no data is lost during transactions, and transactions are processed in specific phases. Secondly, the payment channel must be safely created with both parties putting their signature on it.
After that, each party can make multiple payments to the other until it reaches a final balance. Hence, any type of dispute between users could be avoided in this manner. It also involves configuring payments for different transaction services using HTLC and CSV to ensure deadlines are met. The best part, these transactions can be done in both BTC and LN networks.
Using PSBT and HTLC makes it easy for operators to avoid any type of unnecessary pitfalls, such as disregarding the offered data. In case such a thing happens, the operator can implement a PSBT scheme that forces to end the entire deal. This way, any type of bad faith for claiming the reward can simply be avoided in the first place.
Integrity And Security At Basic Data Level
Complete data security and absolute integrity is the base for Storm. Dr. Maxim Orlovsky achieved this by using some well-known testable probabilistic tests and working with them. In turn, these tests account for the security and integrity of the data shared through the system.
These proofs are derivatives of Zero-Knowledge Proofs (ZKP), commonly implemented in cryptos such as ZCash and Monero. For example, suppose any user wishes to know if their data is really on the Storm network. Then, they can request cryptographic proof from the operator. Consequently, operators can share this data without knowing what users have left in their network.
This is achieved by dividing the data into blocks of equal size before sharing it with the network. After choosing blocks in any random number, the system reads a double Merkle tree-building process, which includes:
- 1. First, the Merkle root is created by taking random, unencrypted data blocks.
- 2. These newly created blocks are then encrypted before creating another Merkle root from this encrypted data.
After completing the creation of different Merkel roots, they are joined for creating cryptographic markers. This marker is shared as proof of storage without much information about the network. This method is almost identical to the working of some popular networks like Filecoin and Sia. These platforms work with the same level of security and protection in their working model.
Also Read : How To Spend Bitcoin?
What’s The Future?
Technology under development with lots of potentials to show new horizons for the usefulness of Bitcoin is what Storm is all about. Like RGB protocol, Storm is also here to ensure good health and the rate of development of Bitcoin. Since Storm’s payment platforms (mainnet and LN) are working perfectly now, better results are expected from this in the future.
While the Bitcoin network focuses on the other development aspects, Storm is creating a better standard of decentralized wallets for the network. Integrating Storm with subjects like Blockstream and RSK, further expectations are made from LN and Bitcoin in the long race.