Testnet Release: DHEBP

The DERO Homomorphic Encryption Blockchain Protocol (DHEBP) Testnet has Arrived!

The DERO team is pleased to announce the release of a unique homomorphic encryption scheme (DERO-HE) and the complete blockchain protocol (DHEBP) for public testing. DERO will migrate from the existing CryptoNote protocol to its own DERO Homomorphic Encryption Blockchain Protocol (DHEBP).

What Is Homomorphic Encryption?

Homomorphic encryption is a form of encryption allowing one to perform calculations on encrypted data without decrypting it first. The result of the computation is in an encrypted form, when decrypted the output is the same as if the operations had been performed on the unencrypted data.

Homomorphic encryption can be used for privacy-preserving outsourced storage and computation. This allows data to be encrypted and out-sourced to commercial cloud environments for processing, all while encrypted. In highly regulated industries, such as health care, homomorphic encryption can be used to enable new services by removing privacy barriers inhibiting data sharing. For example, predictive analytics in health care can be hard to apply via a third party service provider due to medical data privacy concerns, but if the predictive analytics service provider can operate on encrypted data instead, these privacy concerns are diminished.

About DERO Project

The DERO Project is aiming to create a platform for developers to deploy secure, open, scalable, and privacy-preserving decentralized applications. DERO is unique because we value security and privacy above all else; as a result, users are able to transact privately over our network without fear of common protocol-level and network attacks. Additionally, our technology preserves transparency where required and scales with network load, which provides an ideal environment for business-class applications.
The project is an industry leader with many cutting-edge advancements never before seen in a blockchain ecosystem:

  • First to implement Bulletproofs
  • TLS-encrypted network
  • Proof-of-Work DAG based Blockchain
  • Fully anonymous transactions based on Homomorphic Encryption
  • Secure against majority hashrate attacks
  • Homomorphic Encryption blockchain protocol with native and base-layer Smart Contracts
  • Competitive CPU mining based on the DERO AstroBWT algorithm

Public Testing

As with our previous releases, the full source code will be available for anyone wishing to build their own binaries. The public testnet will consist of two phases:

Phase 1: DHEBP

The initial testing phase will introduce the base layer protocol, DERO-HE, and many new features new to the blockchain space. Our aim is to extensively test the following:

  • Homomorphic account based model, a first for privacy-focused blockchains.
  • Instant account balances (only 66 bytes of data need to be read from the blockchain).
  • No more chain scanning or wallet scanning to detect funds, or the need for key images, etc.
  • Truly light-weight and efficient wallets.
  • Massive scalability improvements (fixed account cost of 66 bytes in the blockchain).
  • Perfectly anonymous transactions with Many-out-of-Many Proofs (Bulletproofs and Sigma Protocol) to support deniability.
  • Fixed transaction sizes of ~2.5KB (ring size 8) or ~3.4 KB (ring size 16) based on chosen anonymity group size (in powers of 2), which have logarithmic growth.
  • Allows chain pruning on daemons to control data retention, while remaining secure using Merkle Proofs.

An example of disk requirements of 1 billion accounts (assuming one does not want to keep history of transactions, but retain all proofs to prove that the node is in sync with all other nodes).

Requirement of 1 account = 66 bytes
Assuming storage overhead per account of 128 bytes (constant)
Total requirements = (66 + 128) GB ~200 GB (assuming we are off by factor of 4 = 800GB)

Note: Even after 1 trillion transactions, 1 billion accounts will consume only 800 GB, and if history is not maintained, everything will be in proved state using Merkle Roots. As a result, even a Raspberry Pi can host the entire chain.

  • Transaction generation takes less than 25 ms.
  • Transaction verification takes less than 25 ms.
  • No trusted setup, no hidden parameters.
  • Senders can prove to receiver what amount they have sent (without revealing themselves).
  • The entire chain is rsyncable while in operation.

Phase 2: Stargate RC2

The next phase will include the DERO Virtual Machine (DVM) and Smart Contracts execution.

  • Allows homomorphic assets (programmable Smart Contracts with fixed overhead per asset), which will remain open, but any data within is encrypted (internal testing/implementation not included in this current testnet branch).

Testnet Participation

In order to participate in this public release, please find all necessary information below:

Download the binaries: https://github.com/deroproject/derohe/releases
Source Code: https://github.com/deroproject/derohe
Testnet Explorer: https://testnetexplorer.dero.io/

Note: This testnet will only support CPU solo mining (use the included dero-miner), but third-party mining software should only require minor modifications for mainnet compatibility.

Testnet Ports

P2P Default Port: 40401
RPC Default Port: 40402
Wallet RPC Default Port: 40403

Happy testing!


Please register your account first using option 4 before mining/receiving/sending transaction.