Adding token protocols and flexible minting features to wallets opens a new world of programmable mertech and other real world use cases. While certainly prone to abuse, the real world utility spans from ticketing to licensing and many more.  

Wallet Tokenization

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Non-custodial wallets rely on the user to store their mnemonics. While often overseen, that step is essential to maintain your user funds long term since systems are programmed defensively to rather loose funds access then to loose user funds. 

Mnemonics are a 12 word seed phrase that resolve your HD Privatekey. From that HD Privatekey, we can derive more than a billion private keys that each generate you a different address (for privacy purposes. 

Since we have so many paths, how do we keep track of them? We do it with a peer to peer payment architecture, where each payment gets added to a UTXO array that involves the path descriptor. As long as we have the mnemonic, path and utxo we can always trigger a transaction (often from many paths and privatekeys at the same time). 

How is that better than classical transactions

With the peer to peer model, we dont need to scan the whole blockchain for each wallet address (that can be tens of thousands that need to be checked against each transaction going through the chain). Instead we keep the data communication direct between sender and receiver (via paymail). Since we still support classical transactions for the foreseeable future, we are actually scanning the whole blockchain for transactions, but definitely will have trade offs in terms of speed and cost for our own infrastructure. 

Wallet Mnemonics and Paths

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Relysia is one of the first full blockchain architectures in the space that can be used without crypto assets. We think it is a first transformational step in the blockchain industry towards a blockchain as a service real world adoption paradigm.

Similar to early home computer adoption, the general use of a technology is often hidden till a critical threshold of adoption is reached. For those adoptions, catalysts such an Apple 2 are required that significantly reduce the difficulty of joining the space, with the necessary robustness and user friendliness to keep the interest and adoption sustainable. Within the blockchain ecosystem, we see similar tendencies: Cryptocurrencies are nowadays mostly seen as speculative assets or potentially fintech solutions, but rarely as database alike core infrastructure, even though the widespread commitment to the Ethereum Enterprise Alliance would suggest otherwise. The first step of the equation is a blockchain protocol that facilitates competitive mining prices, which we see in Bitcoin SV. The second step is, to reduce the low transaction fees that represent friction of any adoption and reduce it to effectively 0 as part of our infrastructure offering.  The combination allows us to offer GCloud or AWS alike competitive SAAS offerings, but moreover a seamless blockchain technology adoption of a broader market.   

The release of Relysia is for us only a first step in the creation of a broad number of SAAS services. It is the heart infrastructure of our internal applications, such as MetaShard, Satolearn, Apiandme, Raspora & co and moreover integral part of our client consulting offerings. The efficiency created by reusing a single infrastructure allows us to offer ultra-competitive market offerings, but also create internal incentives to keep the Relysia wallet infrastructure at the highest standards at all times. We see a increasing complexity of regulatory compliance and transaction handling on the horizon. We made it thus our mission to offer developers and clients of the ecosystem a professional and rounded infrastructure product that can be integrated at low cost. In the following month we will make plenty of announcement related to KYC, Compliance and Token solutions in our continued effort to create best in space blockchain solutions. 

Why Infrastructure Matters

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In the blockchain space there is the well known tradeoff between custodial security and utility. While traditional non-custodial wallets were rather classic key holders, modern non-custodial wallets can offer a variety of services while still keeping the user in control.

A standard requirement for wallets to not become money transmitters is to let purely the owner of the keys compose and transact transactions. While a good implementation significantly reduces the chance of attacker based fund losses, it also increases the chance of user losing funds (due to password or mnemonic key losses). Even though the reputation of non-custodial wallets is to be limited in functionality, most functionalities can be replicated even dissolving the concept. 

While the definition states that the users need to be in full control of their funds and in extended version, wallet service providers shall not be fiduciaries of the money, the definition is still wide open. While some wallet providers such as MoneyButton encrypt their Mnemonics with a password (which requires the user to never forget their password, the equivalent is the 

), others go with "keyless solutions", where the key is fragmented in multiple parts (owned by various providers, equivalent is the 

). The question in both solutions is rather to which degree it is impossible to intrude the users security, but certainly none of the solutions provide any bullet proof security. The question then is, do we define as non-custodial an application based on effort it would take to take custody? (cracking a short password or hacking the client side application/internal structure). One may argue above named steps are basic server security requirements (that face the same dilemma), not specific blockchain or crypto based standard measures.  It likely comes rather down to the base operational practices of a wallet infrastructure whether they access keys without permission or not. 

Even without a non-user triggered key usage, there is a wide variety of p2p inspired methods to make full usage of our newly discovered "programmable" money. Transaction bundles can be composed, but not submitted (equivalent to writing a cheque), and thus be used in auctioning mechanisms. Other methods including bitcoin script based atomic swaps to exchange goods (another pre-composed bundle, just in different shape), that are especially attractive in combination with tokenization contracts. We think that different types of non-custodial wallets with different security standards are best suited to offer each client group the best service for their needs. While some users prefer the ease of use, and password reset functionalities of standard wallets, others prefer the higher degree of security with password protected or even multi signature based wallets. 

The debate on methods related to creating non-custodian wallets will likely fade over time in the background of blockchain adoption, as regulations are not fine grained enough to create clear definitions. We thus take the user experience first, and let everyone pick the combination of utility and security they require for their individual applications. 

Non-Custodial: Security & Utility

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There are over 2500 blockchain protocols and tokens listed on Coinmarketcap. While that is at first sight a great variety of options to pick, less than a handful have the economic properties to be used as infrastructure backbones. 

While it seems that there is a sheer amount of different blockchain protocols with different advantages, a closer inspection reveals that most of them fall into specific groups of economic incentive and scalability properties that make them unremarkably similar.  

For the long term maintenance and functioning of a decentralized system, it is the incentive, not the narrative, that protects the system from collapse or takeover. Incentive system means, that when every player of the system acts in their own self interest, the system stays sustainable. 

While that is obvious, few blockchains actually care about long term incentives and rather aim for short term gains or popularity of narrative. 

Miners and infrastructure providers need to be incentivized to create better value to their costumers (the blockchain users) by scaling the network and lowering the fees of the network. Users, such as blockchain application developers need to have the guarantee of immutability, stability of the protocol and low transaction costs to ensure that they themselves can offer a valuable solution to their end costumers. 

When end costumers are satisfied by the additional benefits of the blockchain, usage increases, and transaction through put demand rises. If they then combined pay more fees to the miners, the miners get incentivized to invest more into their infrastructure to provide a faster network at lower network costs. 

If on the other hand miners don't get incentivized to improve the user experience, and only compete against each other - may it be with proof of work hashpower of proof of stake investment, the network has no intrinsic property to grow towards a global infrastructure. 

Bitcoin SV has a simple but battle proven incentive system. Blocks are not limited by protocol developers, but purely by miners that orient their own infrastructure investment (to increase server capacities and network throughput) based on reward expectations (which is the transactions * fee). If some miners process too big blogs for others to process, other miners will orphan those blocks and keep mining their own perceived honest branch. 

Users on the other hand can expect a decrease in fees and a constant increase in maximum transaction capabilities (based on moores law) and thus rely on the Bitcoin SV protocol as a long term infrastructure solution. It may sound simple, but its those simple insights that are often over seen but painfully critical once developing a system of scale. One cannot build a world spanning global network without getting the basics right, and at closer look very few seem to focus on real world adoption. 

To our Bitcoin SV choice

Why We Chose Bitcoin SV

What is the so called "satoshi vision"? Its a vision towards a self sustainable incentive system that scales to a global transaction system. Let us explore some details why it might work.


Relysia Blog

Wallet Tokenization

Wallet Mnemonics and Paths

Why Infrastructure Matters

Non-Custodial: Security & Utility

To our Bitcoin SV choice

Bitcoin SV: A Golden Vision