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HIP-0011 : The Meta Account Key

Number:  HIP-0011
Title:   The Meta Account Key
Type:    Standards
Status:  Draft
Authors: Matthew Zipkin <[email protected]>
Created: 2022-03-25
Requires: HIP-0008

Abstract

There are some wallet operations that do not require addresses for receiving HNS on chain. However, BIP32 recoverability is still desired for metadata that may be involved in these operations. For these operations, we define a constant account index of 0xffffffff as "The Meta Account". Derivation paths from this account key should be specified in this document to track future standard uses for The Meta Account Key.

Motivation

Hardware Wallets

Hardware wallets like Ledger Nano S and Nano X support multiple coin types. The Ledger wallet in particular has "apps" for each coin and the BIP32 paths are partially locked. This means that wallet software can only request data from the hardware in the account, branch, and index ranges.

Account Key Leakage

One example of recoverable wallet metadata usage is in the generateNonce() function used by hsd when creating BID outputs. In hsd versions up to and including 3.0.1 (as of this writing) the wallet incorporates a pseudo-random factor to the blind that is partially derived from the current spending account's xpub (Extended Public Key).

This means that if a user's xpub is leaked or given to a third party for any reason (e.g. an accountant tracking wallet activity or other watch-only wallet service) that party can "guess" the value of that user's blinded bids and will be able to verify if they guessed correctly by regenerating the nonce used in the BID. Since the lockup defines the upper limit of possible bid values, the brute-force space is actually quite limited and easily accessible.

For example, if an attacker knows a user's xpub and they see that user has placed a bid with a lockup of 10 HNS, they can use that xpub and the auction nameHash to generate nonces for all values 0 - 10,000,000 until one nonce matches the blind. The attacker then knows the secret bid value.

For this reason, The Meta Account Key is proposed as a REQUIRED feature of HIP-0008

Features

The meta-account key has the following properties:

  • It can be restored from the wallet seed.

  • It can remain private forever, there is never any need to share it.

  • Users can share their xpub for accounting reasons but still keep their bid values secret.

  • Watch-only wallets like those that construct transactions for hardware-singing devices can request the metaxpub from the device and store it in a database. No private key or password will ever be needed.

  • Private keys from the metaxpub path are never used, so decrypting the master private key is only needed to derive it once. Wallets that manage private keys can choose not to store the metaxpub and derive it from the master private key on the fly when users enter their password.

Specification

  1. Private keys from this account should NEVER be used

  2. Child branches of The Meta Account Key therefore must always be non-hardened

Example:

const meta = wallet.master.key.deriveAccount(
  44,           // Purpose (BIP-44)
  5353,         // Coin Type (BIP-44)
  0xffffffff    // Meta Account
);

// Standardized purpose for HIP-8
const HIP8_master = meta.derive(0x00000008);

// Derive local spending wallet account for HIP-8
const HIP8_account = HIP8_master.derive(account_index);

// Continue using HIP-8, incorporating nameHash and auction height
const publicKey = metaxpub.derive(0x00000000)
                          .derive(0x11111111)
                          .derive(0x22222222)
                          .derive(0x33333333)
                          .derive(0x44444444)
                          .derive(0x55555555)
                          .derive(0x66666666)
                          .derive(0x77777777)
                          .derive(0x00002710); // height

const hash = Blake2b(bidAddress.hash || publicKey);

// Used to XOR secret bid amount into nulldata output
const key = hash.slice(0, 8);

Meta "Purpose" Definitions

In this chart, the root of all paths is labeled meta' and refers to the xpub derived from wallet account 0xffffffff.

Path Purpose Notes
meta'/0x00000008 HIP8 bid value encryption for on-chain metadata Derive meta'/0x00000008/<account> with bidding wallet account index before computing the HIP-8 XOR key.

Implementation

https://github.com/pinheadmz/hsd/commit/6f3122108bc7a9561dced9e26cf15702f7e48f6f