👀Subwallet security
General information about the workflow
Once a user who wants to vote on a dapp proposal it is required to pay 50 dollars in BTC for the mimimum yes vote. The no vote is free thus no subwallet will be needed in this case. You could say a secret wallet exists for a user who intented to vote on a (dapp) proposal. Each user has its own secret wallet which holds the money until dapp proposal succesfully clears all parameters and the proposal is approved and confirmed.
The developer or team is rewarded with the money and the BTC funding address receives the bitcoin. The user / wallet money are secured in their secret wallet to keep everything safe. it is stored with encryption in backend and consumed securely via decryption on backend without exploiting visibility. Also a backup program is running 24/7 to secure all the encrypted users subwallets.
Security information about the subwallet's
The main wallet of the user does only connect to the UTXO dapp and the dapp only reads the coin and tokens balance within this wallet. The UTXO dapp does not use smart-contracts and can never get or store your privat keys (of your main connected Bitcoin wallet). On the other hand, if you create a proposal or vote on a dapp proposal yes and donate 50+ dollars in BTC. You will need to create 1 or 2 subwallet, this depends on if you want to create a proposal or vote on a dapp proposal. In this case, the donatin & collateral subwallet is created. The subwallet holds your BTC untill the end of the proposal and if the proposal is approved. The BTC within the users subwallet will be send to the BTC funding wallet of the proposal. If the proposal is rejected the user could withdrawal the BTC out of the subwallet of the user could use this funds on another proposal.
If the user preform a certain action that would require a subwallet, an encrypted privat key will be generated and tied to the main connected BTC wallet. The privat key of the subwallet is saved on the back-end server with a 24/7 backup tool running and nobody will be able to understand and read the privat key of the subwallet. Untill it is properly decoded with the correct key of the specific BTC wallet address that is tied to this specific subwallet.
Note: Only the specific wallet could get acces to the collateral subwallet or donation subwallet due to the fact that this wallet is the only wallet that could decrypt the encrypted keys for these subwallet.
Note: The privat key of the subwallet is stored with encryption in backend with a 24/7 backup tool running and consumed securely via decryption on the backend without exploiting visibility.
Note: Quick summary, the subwallet's privat key and the connected main BTC of the user are always safe!
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