Decentralization is a critical success factor for blockchain systems and applications. However, some parties may compromise this principle on Delegated Proof of Stake (DPoS) networks, such as Telos, in order to collect rewards through multiple block producer candidates. This is a Sybil attack colloquially known as a “sock puppet attack”. It is pursued by the same party attempting to simultaneously represent multiple parties on-chain, typically by falsifying information presented to the stakeholder community.

The Telos community places importance on proactive governance to prevent and avoid these attacks. Telos Block Producer Minimum Requirements, Section A.5. Block Producer Entity Ownership, states that:

Regardless of their level of participation, to participate in the TBN at any phase, Block Producer candidates are required to provide, and abide by the following:

A. Disclosures

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5. Block Producer Entity Ownership

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Disclosure of accepted third-party identification verification service and identification hash for each beneficial owner (* to be implemented).

Gyftie has developed technology (smart contracts and web application) to enable a decentralized, web-of-trust identification verification system to meet the needs of A. 5. b.

How it Works

Gyftie allows members to create a hash of their identifying information (e.g. Passport number, driver’s license number) and save that hash on chain. This establishes a cryptographic fingerprint of the identifying information in a public location without having to reveal the underlying information publicly.

Later, if a member suspects that another member is involved in a sock puppet attack or otherwise is misrepresenting their identity uniqueness, the member may challenge the other member. To challenge another member, the challenger must stake 10% of the balance of the challenged account’s TLOSGFT tokens. If the challenged account successfully verifies the hash, he or she, along with the verifier, collect the 10% bounty that was staked by the challenger. If the challenged account fails to verify, his or her entire TLOSGFT token balance is claimed by the challenger, verifier, and the community at large.

The Gyftie Identity framework aligns incentives for the network to identify, uncover, challenge, and re-verify identity uniqueness.

Securing the Network

We believe that block producer candidates that enroll with the Gyftie Identity framework meet the needs of section A. 5. b. of the Block Producer Minimum Requirements.

Cyber is the latest frontier of warfare and includes a number of attack vectors, including doxxing, swatting, phishing, and a number of other identity-related attacks. The Gyftie Identity framework protects the privacy of its members because the identifying information of members is only subject to collection and review by trusted network verifiers. Eliminating these attack vectors while also protecting against sock puppets establishes optimal security for the Telos network.

Self-Sovereign Ecosystem

Since Gyftie introduces a solution to Sybil attacks and sock puppets, we have a unique opportunity to innovate with “one account one vote” governance models. The Gyftie smart contracts are not controlled by any individual or any traditional multi-signature controls seen in other EOSIO applications. The smart contracts have (or will shortly) their native EOSIO permissions removed, and upgrades can only occur based on a voting model known as nested consensus.

Nested consensus requires that three conditions be met in order to upgrade the contract, change policies, or otherwise authorize any administrative-style transactions. These conditions are:

• Proposal must be actively reviewable and votable for 72 hours
• Sixty (60%) of all Rank Zero Signatories must approve
• Eighty (80%) of all voting Gyftie members must approve

These conditions, including any changes to the conditions themselves, are enforced through the smart contract.

Join Gyftie

Gyftie members believe that engaged collective intelligence produces the best decisions and outcomes. We encourage feedback, constructive criticism, and engagement in our Gyftie Telos Community telegram group located at https://t.me/GyftieTelosCommunity and signup at https://telos.gyftie.org.