The global financial crisis of 2008 undermined trust in global banks and regulators. This crisis of trust gave birth to Bitcoin — the first digital means of transferring value on the internet, free from manipulation and regulation, using blockchain technology. A crucial aspect of this technology was the ability to conduct transactions anonymously and freely, outside the control of banks and beyond the influence of credit risks.
The control over financial transactions, which has been continuously tightened worldwide since the "war on terrorism" began on September 11, 2001, seems excessive to most financial service consumers and does not protect them from various kinds of abuse, including from the banks themselves (for instance, an interstate money transfer can take up to two weeks without explanation). Global banks have become so powerful that they have corrupted regulators and rating agencies. As a result, the common person is effectively held hostage. Formally, being ordinary creditors of banks, people holding their money in bank accounts find themselves in a situation where banks almost do them a favor by servicing them, arbitrarily setting compliance rules for them. At the same time, banks increasingly control people without providing an adequate level of financial security in return.
Paraphrasing George Washington's famous truth, those who allowed banks to gradually take away their freedom under the pretext of enhancing security eventually lost both. But there were others who resisted and designed Bitcoin.
The group that designed Bitcoin in the context of that time was looking for key points that would make blockchain transaction technology popular. One of the key points then became anonymity and the fundamental impossibility of reversing transactions. The practical implementation of these capabilities was a hyperreaction of financial service consumers to excessive control and the extraterritoriality of the financial legislation of individual countries and worked well for a long time.
However, anonymity and the irreversibility of transactions have a downside. The downside of not having authoritative third parties as transaction intermediaries was the complexity of applying the technologies and the high demands on personal responsibility for consumers. It is necessary to meet many conditions to ensure that a created wallet is used safely and that the funds received to it are under the control of the wallet creator. For many users of the widespread Web 2.0, the inability to restore access to their crypto wallet in case of a lost private key is a major fear.
The development of various DeFi technologies has further increased user requirements for understanding how the technologies work. Even experienced and thoughtful blockchain technology users fall prey to simple phishing attacks by substituting the website address or the digital contract address. This has led to a widespread and largely justified belief that there are no 100% guarantees of retaining control over a digital wallet. It is necessary to diversify risks by having several wallets. Some with small amounts should be kept active on the computer, while others with large sums should be kept “cold,” without physical access to private keys from the internet. Even in this case, sophisticated attacks on the wallet user can lead to losses.
Gradually, the blockchain technology world has come to resemble the lawless world of the Wild West. In Web 3.0 (the decentralized internet of digital entities), hackers, scammers, and fraudsters run rampant, while law-abiding users must master the understanding and skill of carefully working with blockchain technologies. Today, this is as necessary as being proficient with a revolver was in the Wild West.
The TNS team asked the question: how to change the situation, and how to convey the advantages of blockchain technologies to those law-abiding citizens who want security and order without infringing on their privacy rights? How to ensure that the next 100 million Web 3.0 users practically master the benefits of blockchain technologies and have a positive experience? How to make the technology close and understandable to ordinary users who do not want to delve into the specifics of blockchain services, thanks to a simple and friendly interface?
Initially, the TNS idea seemed simple from a technical implementation standpoint: attract users through a social graph (a referral system unique to blockchain projects); break through the network barrier; create a de facto identity standard and add value to this identity through reputation and the ability to counter fake information. The task was also to allow name owners to control the degree of disclosure of personal information. The basic TNS techniques were implemented on the Ethereum test network back in the summer of 2023.
Understanding our responsibility to future hundreds of millions and billions of users, it was decided to attract the best blockchain technology specialists in the world (without false modesty!). It is crucial that the standard be open, work flawlessly technically, and implement the principles of open architecture. Additionally, the requirements for the load of the TNS system were formulated, which should quickly and cost-effectively serve hundreds of millions of users, make their work as intuitive as possible, maximally protect them from the risks of losing their names, and minimize transaction costs.
As a result of the work, unique technical solutions and approaches emerged. Thus, in TNS, not only will crypto assets be stored on names, which is already a new milestone in the crypto industry, but a second wallet will also be stored on the name. The second wallet will allow signing documents, linking accounts to various social networks and other online resources, allowing daily use of the name without the risk of losing it and the resources stored on it.
It will be possible to use the accumulated network capital and the reputation associated with the social graph without fear of making a critical mistake, without the risk of falling into a sophisticated scam aimed at intercepting the name or digital assets on the name. This is achieved by linking the second wallet to the name. In fact, TNS will implement an analog of multi-factor authentication in Web 3.0 using exclusively Web 3.0 tools, without disclosing personal data and biometrics. Maximum security without third-party involvement, from whom there is always a risk of your personal data being stolen!
Moreover, this technology will enable the implementation of a multi-signature mechanism useful for corporate/collective users. Collectives can control name ownership through a multi-signature implemented as a digital contract managing the wallet, creating various corporate governance rules. For example, the ability to sign current messages and documents is assigned to a separate specialist who has access to the private key of the second wallet. At the same time, for users exploring online resources for their source, it remains possible to always understand when and by which wallet, from which name the information is signed, how and when accounts were linked to the name in social networks. Clear, transparent, honest.
It should be said that technically flawless implementation of the SideChain technology is a complex task. For example, the bridge (transfer node) for transferring TRUE tokens from the Ethereum network to the L2 TrueConnect network and back is implemented as a separate blockchain with distributed nodes. Such a time-tested solution protects against bridge hacks. In many high-profile bridge hacks recently, their creators made mistakes trying to use simpler solutions.
Creating a new identity standard on the internet is a difficult task, the path is thorny. The TNS team, understanding the scale and responsibility of the task, is confident in their abilities and can, within reasonable limits, shift the deadlines for the final release of some key technologies if the duration of the testing processes requires it to achieve technical perfection and flawless cybersecurity. A meticulous approach to technical implementation guarantees the long life of the project and the ability to attract new hundreds of millions of blockchain technology users. Some technical solutions, even at the early stages of TNS digital ecosystem development, will allow most users to use the advantages of TNS in the usual mode of working with Web 2.0 accounts. At the same time, qualified users will be provided with the opportunity for the highest level of protection of their names and digital assets.
We have adaptive technical solutions that will make using our services elementary and accessible to every retiree and housewife, just as bank cards are popular now. We will talk about this in the next articles a little later.
We believe that our approaches and solutions ensure the potential growth of TRUE capitalization to the current capitalization level of Ethereum and Bitcoin, and then beyond.
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