Whitepaper: Bitcoin Naming System (BNS) — A Decentralized Identity Solution for Bitcoin
A revolutionary DID solution for Bitcoin, heralding a new era of decentralized identity management. Our platform offers superior security, scalability, and interoperability, providing users with unprecedented control over their digital identities. Starting with Merlin Chain, supported by Merlin Scan, we aim to expand to Bitlayer, B Square, BEVM, and beyond, creating a robust ecosystem for decentralized identity solutions on Bitcoin. Join us in shaping the future of digital identity.
Abstract
In the world of decentralized finance and digital assets, the need for robust and secure identity management solutions has never been greater. Bitcoin, the pioneer of blockchain technology, lacks a native identity system, presenting challenges for users seeking to establish their online presence securely. The Bitcoin Naming System (BNS) addresses this gap by introducing a decentralized identity solution tailored specifically for the Bitcoin ecosystem. This whitepaper outlines the BNS project, its technical architecture, key features, use cases, and roadmap for implementation.
1.Introduction
1.1 What is BNS
Bitcoin, as the world’s first cryptocurrency, has revolutionized the financial landscape, but its lack of a native identity system poses challenges for users and businesses. BNS aims to fill this gap by providing a decentralized naming system that enables users to create and manage their digital identities securely on the Bitcoin blockchain.
The Bitcoin Name Service (BNS) is a distributed, open, and extensible naming system based on the Bitcoin blockchain.
BNS converts user-friendly names such as ‘alice.btc’ into machine-interpretable identifiers like Bitcoin addresses, alternate cryptocurrency addresses, content hashes, metadata, and beyond. BNS also enables ‘reverse resolution,’ allowing the linking of metadata like primary names or interface descriptions with Bitcoin addresses.
Top-Level Domains (TLDs), like .btc and .test, are owned by smart contracts called registrars, which specify rules governing the allocation of their names. Enabling seamless interoperability with the DNS (Domain Name System).
1.1.1 BTC Registrar
The BTC Registrar is the registrar for the .btc TLD, it allows for trustless decentralized names to be issued as tokens on the Bitcoin Blockchain. Registration is done through smart-contracts, and name ownership is secured by the Bitcoin blockchain.
1.1.2 DNS + BNS
BNS has similar goals to DNS, the existing Internet’s Domain Name Service, and aims to extend its capability. BNS also supports importing DNS names through the use of DNSSEC. Allowing you to take your .com, .xyz, or .art (and more) into the BNS ecosystem.
.com .xyz .nl .net .org .shop .city .es .id .space .tools .wtf .uk .dev .day .fyi .cool .fr and any other BNSSEC-compatible domain…
1.1.3 Subnames
Because of the hierarchical nature of BNS, anyone who owns a domain at any level can take control of resolution. Users can create subdomains manually, or take matters into their own hands and write their own resolution logic.
For instance, if Alice owns ‘alice.btc’, she can create ‘pay.alice.btc’ and configure it as she wishes. Or, use a Custom Resolver, and programmatically issue subdomains, for example in an App, Community, or DAO.
1.2 Deployments
BNS is multichain and can be used in any application. In addition to being able to query many address formats and record types, data can be stored anywhere. However, resolution needs to start somewhere, so the entrypoint for resolution is Bitcoin Mainnet, alongside the most popular testnets.
The BNS Protocol can be used on/for any chain! This allows tools to access mainnet, and load BNS information!
1.3 Resolution
One of the major parts of the BNS protocol is the resolution process. The Resolution process at its core is the process of converting a human-readable name to a machine-readable address.
Though there is a lot of smart contract magic under the hood, the BNS system consists of two main paths: Forward Resolution, used to go from name to address (and load other extra data), and Reserve Resolution, used to go from address to name.
1.4 DNS on BNS
The Bitcoin Name Service is so much more than just .btc names. It is a general-purpose naming system that can be used for any kind of name. This includes DNS names.
1.4.1 Importing a DNS name
There are currently two ways of importing a DNS name into BNS. Both methods require you enable DNSSEC on your domain, and set up a TXT record. This record is then verified using smart-contracts on the Bitcoin blockchain.
To import a name, simply visit the BNS Manager, type in your name, and click “Import DNS”. You will walk through setting up your BNS records.
2. Technical Architecture
BNS utilizes a smart contract-based system deployed on the Bitcoin blockchain, enabling users to register, transfer, and manage their BNs securely. The system employs cryptographic techniques such as Elliptic Curve Digital Signature Algorithm (ECDSA) for identity verification and Merkle trees for efficient data storage and retrieval. Additionally, BNS integrates with existing Bitcoin wallet software, making it accessible to a wide range of users.
2.1 Resolution
The process by which we load information about a name is called resolution. It’s a simple process, but it’s important to understand. Here is a diagram of some of the contracts involved when resolving a name.
The resolution process involves multiple parts. Most notably the Registry, multiple Registrars and the concept of a Resolver.
2.1.1 How to resolve
Each name is associated with a “resolver.” A resolver is merely a contract that adheres to the resolver specification and can be interrogated for details regarding a name.
Once you’ve identified the resolver associated with the relevant name, you can proceed to request specific information from it. There are various methods available for querying the resolver, including addr(), text(), contenthash(), abi(), and others.
If the resolver accommodates text records, you can utilize the text() function to retrieve the text record corresponding to the name. Further details on extracting information from a resolver can be accessed here.
2.2 Name Processing
When interacting with the BNS protocol smart-contracts directly it is important to note that names are not stored in their human readable format. In fact there are a few steps a name undergoes before it can be used by a smart-contract.
When building a dApp most of the time you don’t have to worry about name processing, as most libraries will handle this for you.
2.3 Name Normalization
Name normalization involves standardizing a name prior to applying it to the Namehash algorithm. It’s crucial to consistently normalize all input since even minor discrepancies, such as variations in capitalization, can result in vastly different namehash values.
2.4 Namehash
In order for us to interface with our nice readable names there needs to be a way we communicate them to smart-contracts. BNS stores names in a uint256 encoded format we call a “namehash”. This is done to optimize for gas, performance, and more.
3.Governamce
3.1 BNS DAO Constitution
The BNS constitution is a set of binding rules that determine what governance actions are legitimate for the DAO to take.
Each article has examples of permissible and non permissible actions. These examples are illustrative and should not be considered a binding part of the text of the constitution itself.
3.1.1 Name ownership shall not be infringed
BNS governance will not enact any change that infringes on the rights of BNS users to retain names they own, or unfairly discriminate against name owners’ ability to extend, transfer, or otherwise use their names.
Allowable: BNS governance has the authority to implement adjustments that impact the registration or extension expenses for all names, following transparent criteria like length, provided it aligns with objectives outlined in this constitution.
Prohibited: BNS governance is not permitted to introduce alterations that raise or lower the extension fees for a specific selection of existing BNS names, as this action would unjustly favor or penalize a chosen subset.
3.1.2 Fees are primarily an incentive mechanism
The main objective of registration fees is to serve as an incentive, deterring the excessive registration of names based on speculation. A secondary aim is to generate sufficient revenue for the DAO, supporting the continuous development and enhancement of BNS. BNS governance will refrain from implementing any fees beyond those designated for these purposes.
Permissible: BNS governance may increase the price of name registrations in order to address excessive speculative registrations induced by a price that is set too low, or because the current price is insufficient to fund ongoing BNS operations at a reasonable level.
Not Permissible: BNS governance must not enact a change imposing a fee for claiming DNS domains inside BNS, because such a fee would be purely an income generating measure and not an incentive mechanism.
3.1.3 Income funds BNS and other public goods
All revenue directed to the BNS treasury prioritizes the sustained viability of BNS and supports ongoing enhancements to the BNS system. Any surplus funds beyond these essential objectives may be allocated by BNS governance to support additional public goods within web3, as deemed appropriate.
BNS governance will only allocate funds to teams or individuals who commit to adhering to the principles outlined in this constitution regarding the utilization of allocated funds.
Permissible: BNS governance may offer grant funding for a public good unrelated to BNS or Ethereum, so long as doing so does not affect the long-term viability of bNS.
Not Permissible: BNS governance must not use the funds to support projects that conflict with the goals of BNS.
3.1.4 BNS Integrates with the global namespace
To promote the creation of the most universally accessible naming system, BNS strives to integrate with the traditional DNS naming system as extensively as feasible while maintaining the decentralization of bNS. ENS governance will refrain from implementing modifications that jeopardize BNS’s capacity to achieve this objective.
Allowed: BNS governance is authorized to transfer control of a top-level domain to its owner in the DNS system upon request.
Prohibited: BNS governance is prohibited from establishing new top-level domains unless those domains have been officially granted to BNS by a DNS authority.
3.1.5 Amendments to this constitution by majority vote
Any change may be made to this constitution only by two-thirds majority and at least 1% of all tokens participating.
3.2 The BNS Foundation
3.2.1 Why have a legal entity?
Having a legal entity representing the DAO in the tangible world holds significance for several reasons:
1)It offers limited liability protection to DAO participants concerning the actions of the DAO. Absence of a legal entity may result in individual liability for participants regarding the collective actions of the DAO.
2)It enables compliance with taxation regulations. Without a legal entity, DAO participants might bear liability for a share of the DAO’s income, even if they lack access to these funds.
3)It enables the execution of contracts with other entities in the tangible world and facilitates asset ownership, including intellectual property rights, among other capabilities.
3.2.2 What is The BNS Foundation?
The BNS Foundation operates as a Foundation Company Limited By Guarantee, registered in the Cayman Islands. Foundation companies, being nonprofits, do not have shareholders, and therefore cannot distribute dividends to their directors or members.
The BNS Foundation is overseen by a single supervisor, whose role is administrative. The supervisor’s responsibility is to ensure that the directors fulfill their duties in compliance with Cayman Islands legislation.
The DAO holds the authority to:
- Appoint or dismiss a director, member, or supervisor.
2.Prohibit the admission of any future members.
3.Direct the directors to conclude the foundation’s affairs, specifying the recipient charity or foundation for the assets.
Although not explicitly outlined in the Articles, the DAO possesses the capability to instruct the directors to act on behalf of the Foundation. This may include activities such as entering contracts, securing services required by the DAO from external companies, or delegating certain directorial powers to a working group within the DAO.
4. Key Features
4.1Decentralized Identity Management
Decentralized Identity Management revolutionizes how users interact with digital platforms by granting them complete autonomy over their identities. With traditional centralized systems, users often relinquish control to intermediaries, exposing their personal data to potential vulnerabilities and privacy breaches. However, with decentralized identity management, users retain sovereignty over their digital identities, eliminating the reliance on centralized entities. This paradigm shift not only enhances security and privacy but also empowers users to manage their online presence autonomously. Through decentralized identity solutions, such as blockchain-based platforms, users can securely authenticate themselves across various services without the need for intermediaries. Additionally, this approach fosters a more inclusive digital ecosystem, allowing individuals to access and control their identities regardless of geographical or socioeconomic barriers. Ultimately, decentralized identity management paves the way for a more secure, private, and user-centric digital future.
4.2 Secure Authentication
BNS serves as a cornerstone for enhancing authentication within decentralized applications (DApps) and communication channels, ushering in a new era of security and trust in the digital landscape. By leveraging BNS, DApps can implement robust authentication mechanisms that prioritize user privacy and data integrity. Through the use of cryptographic keys tied to BNS identities, users can securely authenticate themselves across various decentralized platforms, eliminating the risks associated with centralized authentication systems. Furthermore, BNS integration ensures seamless interoperability between different decentralized services, facilitating frictionless user experiences while maintaining high levels of security. In communication channels, BNS authentication adds an extra layer of trust, enabling secure and verifiable interactions between parties without relying on centralized authorities. This not only enhances privacy but also mitigates the risk of identity theft and unauthorized access. Overall, BNS-driven authentication empowers users with greater control over their digital identities while fostering a safer and more resilient decentralized ecosystem.
4.3 Interoperability
BNS is meticulously crafted to seamlessly integrate with the established Bitcoin infrastructure, facilitating effortless compatibility with wallets, exchanges, and decentralized applications (dApps). Its design ensures a smooth transition for users and developers, enabling them to leverage familiar tools and services within the Bitcoin ecosystem while harnessing the unique capabilities of BNS. This compatibility extends across various aspects, including wallet support for managing BNS-based assets, exchange integration for trading BNS tokens, and dApp interoperability for seamless interaction with decentralized services. By bridging the gap between Bitcoin and BNS, this integration not only simplifies user experiences but also expands the utility and reach of both platforms. Ultimately, BNS’s compatibility with existing Bitcoin infrastructure fosters innovation and adoption within the broader blockchain ecosystem, driving forward the evolution of decentralized technologies.
5. Use Cases
5.1 Personal Branding
Individuals have the opportunity to register BNS, thereby solidifying their online presence and identity within the Bitcoin community. This registration process empowers users to claim unique identifiers that represent them in the digital realm, fostering a sense of ownership and authenticity. By securing a BN, individuals can establish a recognizable and trustworthy persona, enabling them to participate more actively in various Bitcoin-related activities, such as transactions, interactions on social platforms, and contributions to decentralized applications. This not only enhances personal branding but also promotes community engagement and collaboration within the Bitcoin ecosystem. Additionally, BN registration serves as a means of protecting one’s online identity, mitigating the risk of impersonation and ensuring credibility in online interactions. Overall, registering a BN offers individuals a valuable opportunity to establish and maintain their presence within the vibrant and rapidly evolving Bitcoin community.
5.2 Secure Communication
BNS offers a versatile platform for encrypted messaging and secure communication channels, bolstering privacy and security in digital interactions. By leveraging BNS, users can engage in confidential conversations and exchanges without compromising sensitive information to potential eavesdroppers or unauthorized third parties. This encryption capability ensures that messages remain private and inaccessible to anyone other than the intended recipients, safeguarding sensitive data and preserving user confidentiality. Whether facilitating peer-to-peer communication, group chats, or encrypted file transfers, BNS provides a robust framework for protecting the integrity and confidentiality of digital communications. Additionally, the decentralized nature of BNs enhances security by reducing reliance on centralized servers or intermediaries, mitigating the risk of data breaches and unauthorized access. Overall, BNS empower individuals and organizations to communicate securely in the digital age, fostering trust and confidence in online interactions while upholding the principles of privacy and security.
5.3 Decentralized Applications
In the realm of decentralized applications (dApps), developers can harness the power of BNS for streamlined user authentication and authorization processes. By integrating BNS, developers enhance the security and usability of their applications, ensuring that users can securely access and interact with decentralized services. Leveraging BNS for authentication adds an extra layer of trust and integrity to dApps, enabling seamless verification of user identities while minimizing the risk of unauthorized access or data breaches. This integration not only enhances the overall security posture of dApps but also improves the user experience by simplifying login procedures and promoting a more user-centric approach to decentralized application development.
6. Roadmap
6.1 Phase 1
Phase 1 of the BNS project entails the development of the BNS protocol and associated smart contracts. During this phase, the foundational framework for the BNS ecosystem is established, encompassing the core protocol specifications and the implementation of smart contracts to facilitate various functionalities. This stage involves rigorous research, design, and testing to ensure the robustness, security, and efficiency of the BNS protocol and smart contracts. Additionally, Phase 1 marks the initial steps towards realizing the vision of BNS as a decentralized naming system, laying the groundwork for subsequent phases focused on deployment, adoption, and further development of the ecosystem.
6.2 Phase 2
In Phase 2 of the BNS project, the focus shifts to beta testing and deployment on the Bitcoin testnet. This crucial stage involves thorough testing of the BNS protocol and smart contracts in a simulated environment to identify and address any potential issues or vulnerabilities. Beta testing allows developers and users to provide feedback and suggestions for improvement, ensuring that the BNS ecosystem meets high standards of security, reliability, and usability. Deployment on the Bitcoin testnet enables real-world experimentation and validation of the BNS system’s functionality, paving the way for a smooth transition to mainnet deployment and widespread adoption in subsequent phases.
6.3 Phase 3
In Phase 3, the BNS project transitions to its mainnet launch and integration with existing Bitcoin wallet software. This pivotal stage marks the official deployment of the BNS protocol onto the Bitcoin blockchain, enabling users to register, manage, and interact with BNS names in a live environment. Simultaneously, integration efforts focus on ensuring seamless compatibility with popular Bitcoin wallet software, allowing users to easily access BNS functionalities directly from their preferred wallets. This integration enhances user accessibility and adoption while expanding the utility of Bitcoin wallet software, fostering a more interconnected and user-friendly ecosystem for decentralized naming and identity management.
7.Partnership with BTC Layers
There are many strategic partnerships established by BNS with various Bitcoin layers, each playing a pivotal role in advancing and integrating decentralized naming solutions. Through these collaborations, BNS endeavors to enhance the interoperability, usability, and security of its decentralized naming protocol within the broader Bitcoin ecosystem. By leveraging the expertise and resources of these esteemed partners, BNS aims to accelerate the adoption of decentralized naming solutions, fostering a more robust and interconnected digital landscape. Through a comprehensive examination of these strategic alliances, this chapter sheds light on the collaborative efforts driving innovation and progress in decentralized naming technologies.
Beginning with Merlin Chain, we are excited to embark on this collaborative journey towards enhancing the Bitcoin ecosystem. Through these partnerships, BNS aims to expand its reach and impact, empowering users with innovative naming functionalities while seamlessly integrating with existing Bitcoin infrastructure. Together with Merlin Chain and other esteemed collaborators, BNS is committed to pioneering decentralized naming solutions that uphold the principles of security, privacy, and user empowerment within the Bitcoin community and beyond.
In the pursuit of its mission to revolutionize decentralized naming solutions within the Bitcoin ecosystem, BNS anticipates forging strategic partnerships with Bitlayer, B Square, and BEVM. These potential collaborations hold immense promise in furthering the integration and advancement of decentralized naming technologies. By aligning with industry-leading entities like Bitlayer, B Square, and BEVM, BNS aims to leverage their expertise and resources to enhance the scalability, security, and usability of its decentralized naming protocol. Through these anticipated partnerships, BNS is poised to pioneer innovative solutions that empower users and drive the evolution of decentralized identity management within the Bitcoin community and beyond.
8. Conclusion
In conclusion, the Bitcoin Naming System (BNS) emerges as a groundbreaking solution poised to redefine the landscape of the Bitcoin ecosystem. Through its provision of decentralized identity services, BNS marks a significant stride towards enhancing both the usability and security of the Bitcoin network.
BNS addresses a critical need within the Bitcoin community by offering users a robust mechanism to manage their digital identities in a decentralized manner. By leveraging blockchain technology, BNS enables users to assert control over their identities, eliminating the need for reliance on centralized intermediaries. This decentralization not only enhances user autonomy but also mitigates the risks associated with single points of failure and potential security breaches inherent in centralized systems.
Moreover, BNS plays a pivotal role in bolstering the security of the Bitcoin ecosystem. With its decentralized identity solution, BNS provides users with a trustless environment for interacting with the Bitcoin network. By utilizing cryptographic techniques and smart contracts, BNS ensures the integrity and authenticity of user identities, thereby reducing the likelihood of identity theft and fraudulent activities within the network.
Furthermore, BNS facilitates seamless integration with existing Bitcoin infrastructure, enhancing interoperability and usability for users and developers alike. Through strategic partnerships with key players in the Bitcoin space, such as Merlin Chain and other esteemed collaborators, BNS extends its reach and impact, fostering a more interconnected and robust ecosystem.
As we look towards the future, the potential of BNS to revolutionize decentralized identity management within the Bitcoin community and beyond is immense. With its commitment to principles of security, privacy, and user empowerment, BNS paves the way for a more inclusive, secure, and resilient Bitcoin ecosystem. By embracing the transformative power of decentralized identity solutions, we embark on a journey towards a future where individuals have full control over their digital identities, ushering in a new era of trust and transparency in the digital realm.
