quick explainer of spark statechain that WoS uses (h/t yah-noosh)
a statechain is a 2-2 multisig:
- alice deposits into statechain. she has custody. operator cannot steal
- alice sends her private key to bob. statechain entity now has a keyshares with alice and bob. statechain can collude with alice and double spend bob.
- to not do this, statechain must delete keyshare held with alice. if statechain does, bob has immediate custody of the funds
- bob can never know if the statechain was actually honest. they can really only know once they withdraw funds from the statechain or when they get rugged
when receiving funds, you have custody in the event that the operator set is honest. you can trust that they are honest, but you can never be sure.
in terms of trust-minimized-ness:
- spark = trusted, but you have immediate custody if operators are honest
