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Welcome to safehaven's wiki page, the place to discover how we make assets inheritable


Executive Summary

This document aims to simplify the understanding of what SafeHaven.io is all about. This document is a technical whitepaper setting out the current and future developments of the Safe Haven project. This paper is for information purposes only and is not a statement of future intent. Unless expressly specified otherwise, the products and innovations set out in this paper are currently under development and are not currently in deployment. We make no warranties or representations as to the successful development or implementation of such technologies and innovations, or achievement of any other activities noted in the paper, and disclaims any warranties implied by law or otherwise, to the extent permitted by law. No person is entitled to rely on the contents of this paper or any inferences drawn from it, including in relation to any interactions with Safe Haven or the technologies mentioned in this paper. Safe Haven disclaims all liability for any loss or damage of whatsoever kind (whether foreseeable or not) which may arise from any person acting on any information and opinions relating to Safe Haven, the Safe Haven Platform or the Safe Haven Ecosystem contained in this paper or any information which is made available in connection with any further enquiries, notwithstanding any negligence, default or lack of care.


Introduction

Few people know, but crypto currencies emerged as a side product of another invention. Satoshi Nakamoto, the unknown inventor of Bitcoin, the first and still most important crypto currency, never intended to invent a currency. In his announcement of Bitcoin in late 2008, Satoshi said he developed “A Peer-to-Peer Electronic Cash System. “ His goal was to invent something; many people failed to create before digital cash. The single most important part of Satoshi‘s invention was that he found a way to build a decentralized digital cash system. In the nineties, there have been many attempts to create digital money, but they all failed. After seeing all the centralized attempts fail, Satoshi tried to build a digital cash system without a central entity. Like a Peer-to-Peer Network for file sharing. This decision became the birth of crypto currency. They are the missing piece Satoshi found to realize digital cash. The reason why is a bit technical and complex, but if you get it, you‘ll know more about crypto currencies than most people do. So, let‘s try to make it as easy as possible: To realize digital cash you need a payment network with accounts, balances, and transaction. That‘s easy to understand. One major problem every payment network has to solve is to prevent the so-called double spending: to prevent that one entity spends the same amount twice. Usually, this is done by a central server who keeps record about the balances. In a decentralized network, you don‘t have this server. So you need every single entity of the network to do this job. Every peer in the network needs to have a list with all transactions to check if future transactions are valid or an attempt to double spend. But how can these entities keep a consensus about this records? If the peers of the network disagree about only one single, minor balance, everything is broken. They need an absolute consensus. Usually, you take, again, a central authority to declare the correct state of balances. But how can you achieve consensus without a central authority? Nobody did know until Satoshi emerged out of nowhere. In fact, nobody believed it was even possible. Satoshi proved it was. His major innovation was to achieve consensus without a central authority. Crypto currencies are a part of this solution – the part that made the solution thrilling, fascinating and helped it to roll over the world. Since you are reading our whitepaper, you invested or are about to invest in this challenging market.

Concerns

Have you ever thought about the day something could happen to you or have you already thought about the day you passed away? Have you ever thought about the day your family has to face life without you? What about your crypto currency investments? What about those difficult markets with hundreds private keys, exchanges and wallets? Will they ever be able to recover that investment without you? Could they trust anyone who would help them without the fear something goes wrong? Yes they can! Safe Haven provides the solution! We are building a platform / Eco-System on the most popular and secure block chains, so that you can stop worrying about your legacy.

Solution

In order to protect your digital assets, we at Safe Haven give you the opportunity to do so without locking yourself out, thanks to our TFC Share Distribution Key Escrow Protocol and the Trust Alliance program, seeds/private-keys/passphrases can be shared amongst stake holders or children in a transparent and secure manner. Our protocol distributes the shares in such a way, that the initiator keeps at all cost the power over his assets. The unfortunate day that he/she should pass away, a registered member of the Trust Alliance Platform (notary) can retrieve his remaining share on the blockchain in order to pass his legacy towards his children / stakeholders. We make your assets inheritable! How do we accomplish that? Check out the step-by-step guide, which includes only 3 steps, and the used techniques described further in this document.

Step-by-Step

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Step 1

The user decides to protect his legacy (crypto assets) and plans to distribute his seeds/private keys or passphrases using safe havens secure and transparent blockchain solution amongst his 3 children. The initiator of the process goes to a registered member of our Trust Alliance program, this is a group of legal entities that have a trustful relationship with Safe Haven in order to process the necessary validation steps.

Step 2

The legal entity, which is in safe havens protocol the validator, divides the data to protect and distributes (see TFC shares distribution Protocol) the obtained shares to the children by using the safe havens application specially developed for that use. The software used for this will not keep any data in memory nor in local nor in centralized databases. Only the validators share (see the validators share process.) will be send to the blockchain. The security algorithm to encrypt and decrypt the share before getting deployed trough a smart contract will not be revealed for obvious security reasons. Safe haven will only have a sort of mapping in place to identify the validators ID and the Smart contract, the mapping will be deployed on a decentralized blockchain database. This will also be the case for the backup validators (see Multiple Validators Possibility & TFC Fail-Safe Share(s)).

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Step 3

The shares distributed to the children are tempered by the notary in the form of a legal certificate. The share to protect, coming from the parent/initiator, will be encrypted by the Safe Haven Application (only accessible by members of the Trust Alliance) and send to the blockchain in the form of a Smart contract.

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The child shares can be shared trough the creation of a certificate and/or trough the integration of a hardware ledger in our protocol. We are currently working out the details in order to achieve this, based on our own hardware ledgers. Details are not made public yet as we are still in the ICO phase of our project.

Step 4

In the case of a sudden death or in the case that the initiator is not able anymore to handle his assets on his own, the children or stake holders can obtain the missing share by introducing the necessary legal documents to his notary. He will than, once verified by Safe Haven, be able to retrieve the missing share from the blockchain. Our Protocol handles fail-safe share and the possibility to have a backup validator, for further details check out our TFC Fail-Safe Share(s) & Multiple Validators Possibility sections described further in this document.

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Basic Principals

Blockchain

The Blockchain is a software innovation for establishing digital trust between users Facilitating transactions of value, over a network. The blockchain enables trust to be distributed throughout a network, without the need for a central intermediary to track, verify and approve the digital exchange of value. The notion of authorizing trust from a central intermediary currently underpins both private and government institutional structures, however this is proving to be costly, slow, and also vulnerable to attack. The blockchain overcomes these issues by operating as a decentralized distributed database, maintaining a continuously growing list of records called blocks.

Smart contract

On-chain computer code or smart contracts are computer protocols that facilitate, verify, or enforce the performance of a contract making a contractual clause unnecessary. Smart contracts often emulate the logic of contractual clauses. Smart contracts can exchange money, property, shares or anything of value in a transparent, conflict-free way, while avoiding the services of a middleman. Ordinarily, a process would require payment to a middleman, government agency, bank, lawyer or a notary, and then a processing time before the receipt of goods or services. However, with smart contract technology it can all be automated. Smart contract technology can be compared to that of an automated vending machine. With a vending machine, money is deposited into the vending machine and the desired item drops for collection, provided that the correct amount is deposited. Comparable to that, with a smart contract, the money is deposited into escrow on the block chain for receipt of a transfer of a token (e.g. a digital certificate of title for a house), which is instantaneously transferred into a counterparty’s control once conditions are met. Smart contracts not only define the terms and conditions around an agreement in the same way that a traditional contract does, but also provide enforcement of those obligations.

Techniques & Conceptual mathematics

Polynomial interpolation

Polynomials can be used to approximate complicated curves, for example, the shapes of letters in typography given a few points. A relevant application is the evaluation of the natural logarithm and trigonometric functions: pick a few known data points, create a lookup table, and interpolate between those data points. This results in significantly faster computations.

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Key escrow

We are not eternal and it would be a pity that with us disappear access to a digital heritage.

The sudden loss of a shareholder could be a problem in order to reestablish the complete passphrase, in this document we will continue to use the example of a family circle or friends in order to highlight the different case scenarios. One answer to this problem is what is called the key escrow, which allows a third party "under certain conditions" to access these shares. But what third, under what conditions, and how to give it our moral but also technical confidence? The escrow authority must be able to securely guarantee the confidentiality of the escrow keys. First of all we should encrypt the data to protect, this can be a private key or a seed with a secure encryption algorithm like SHA265-512 and by using a passphrase. This passphrase could then be divided into shares and distributed by our TFC SD Protocol.

Secret Sharing

In cryptography, a secret sharing scheme is a method for distributing a secret amongst a group of participants, each of which is allocated a share of the secret. The secret can only be reconstructed when the shares are combined together; individual shares are of no use on their own. More formally, in a secret sharing scheme there is one dealer and more players. The dealer gives a secret to the players, but only when specific conditions are fulfilled. The dealer accomplishes this by giving each player a share in such a way that any group of t (for threshold) or more players can together reconstruct the secret but no group of less than t players can. Such a system is called a (t, n)-threshold scheme. in a (t ,n) scheme one can prove that it makes no difference whether an attacker has t-1 valid shares at his disposal or none at all; as long as he has less than t shares, there is no better option than guessing to find out the secret. Some use cases of secret sharing: (See SHA Protection Plans ) • Good passwords are hard to memorize. A clever user could use a secret sharing scheme to generate a set of shares for a given password and store one share in his address book, one in his bank deposit safe, leave one share with a friend, etc. If one day he forgets his password, he can reconstruct it easily. Of course, writing passwords directly into the address book would pose a security risk, as it could be stolen by an "enemy". If a secret sharing scheme is used, the attacker has to steal many shares from different places. A typical application of this scenario is the secure implementation of an encrypted backup system. Assuming that data recoveries are needed rarely, backup data can be public key encrypted -- this can be done automatically and without user interaction -- while the private recovery key is protected via secret sharing. • "A dealer could send t shares, all of which are necessary to recover the original secret, to a single recipient, using t different channels. An attacker would have to intercept all t shares to recover the secret, a task which may be more difficult than intercepting a single message". • The director of a bank could generate shares for the bank's vault unlocking code and hand them out to his employees. Even if the director is not available, the vault can be opened, but only, when a certain number of employees do it together. Here secret sharing schemes allow the employment of not fully trusted people.

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Two men’s rule

This rule (two-man rule) is used in sensitive areas such as command to send nuclear missiles to prevent accidental or malicious skidding. In cryptography, Americans use the phrase "two-person integrity" (TPI) when it comes to preventing a single person from having access to cryptographic keys for secure communications (COMSEC).

So here is an interesting concept that would help us to resolve these issues of trust and security with the escrow authority. By requiring that two individuals collaborate to reveal the data in escrow, we shelter ourselves from an isolated malicious act. Let's divide the pass phrase of the escrow key and give the pieces to a group of trusted people that we call the family circle (TFC) How to break up this pass phrase? Simply distributing N pieces between the N members of the TFC forces them to meet together to use the private key escrow, but if one of them is unavailable or is precisely the missing shareholder of the TFC whose sesames we want to recover. Two points are enough to define a line, three to define a parabola, four for a cubic, and so on. If now we want to share a secret, say the value 1234, between six individuals and three of them are needed to find the secret, we will randomly choose a parabola among those passing through the point (0, 1234) and we will give the coordinates of six of his points to these six individuals (see Figure9).

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If only two of them, nos. 2 and 4, came to share their coordinates, they could not find the original parabola and therefore the value of the secret point in x = 0 (see Figure10).

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It is therefore necessary that a third individual agrees to share his / her coordinates in order to define one and only one parable and to reveal the secret value 1234 (see Figure11).

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TFC shares distribution Protocol

The family circle is for safe haven a context of members belonging to a group, this group can include family members, a company’s group of stake holders of trust or simply a circle of friends. The TFC SDP is a protocol developed by Safe Haven in order to establish a circle of trust in our eco-system. If we consider our above described techniques, we have a dealer (the person that wants to protect his legacy) and n players (his children and the validator [notaries]). The dealer gives a secret to the players, but only when specific conditions are fulfilled. The dealer accomplishes this by giving each player a share in such a way that any group of t (for threshold) or more players can together reconstruct the secret but no group of less than t players can. Such a system is called a (t,n)-threshold scheme.

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TFC SD Protocol base rules: • The secure secret to split in shares can be maximum 1024 bit. • If you want to protect a secret larger than 1024 bits, a hybrid technique has to be applied, the secret has to be encrypted with a block cipher and then we apply only the secret sharing to the key (openssl and gpg are valid tools). • The secret security level can imply an upper bound for the length as short secrets/seeds/keys will be padded with some salt bits. • We can use hexadecimal digits in place of ASCII characters for I/O, so binary data can be protected/split into shares, also. • While splitting or combining the shared secret, the Protocol locks its virtual address space into RAM or privacy reasons. • The number of distributed share entities is technical spoken limited to 99, we limit this even further to 15, while each entity can have more than 15 but < 99. • The validator y has always -1 share less than the n (players/children). • We need at the least 1 player n and 1 validator y in order to establish a complete network of trust in safe havens eco-system. • Multiple validators can be added.

TFCSD Case 1: 1 child and 1 validator

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TFCSD Case 2: 3 children and 1 validator

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TFCSD Case 2: 3 children + fail-safe and 1 validator

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TFCSD Case 3: 3 children and 2 validators

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TFC Fail-Safe Share(s)

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TFC SD Fail-safe Protocol: • The remaining shares will be used a sort of fail-safe share • This can be useful in the case that of one of the n (players/children) lost his share, becomes unable to act rightful or dies. • Our protocol provides a separate “backup” smart contract on the blockchain with different conditions written in. • The fail-safe shares can’t be given at any circumstances to one of the n (players/children) as this would jeopardize the complete operation setup by the dealer (parent), as in use case 2 (3 children + 1 validator) the children can’t recompile the secret share without the validators share (trough blockchain Smart Contract query) but when you give the backup shares, they will be able to do so. • The only case where we don’t have a fail-save share is when we need a consensus of 100% of the stakeholder, for instance the use case 1 (1 child + 1 validator).

The validators share process

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• The validators share process consist of a pool of legal entity validators, which are members of our Alliance Program. • The validator does not stock , own or see anything of the shares meant to be send to the blockchain, there role is transparent in terms of secret shares deployment. • They distribute the shares to the n (players/children/stake holders) in a formal way by delivering a legal certificate to n and validate the transaction towards the blockchain in a transparent way. • The validators share is actually the share of the person that initiated the process to begin with, he safeguards it in the blockchain via a validator in order to keep full right of the complete secret share , and so his assets as long as he lives. • The validator(s) is/are the only one(s) that can retrieve the share previous send to the blockchain if the following conditions are met. o The total number of shares of the n (players/children/stake holders) has to be present, if not and if needed, the fail-safe share can be retrieved also by the validator if the backup Smart contract conditions are fulfilled. o In the case that the initiator (parent/dealer) dies the validator has to validate the rightful medical forms in order to initiate the retrieve process of the share stocked in the blockchain. • The initiator/ parents share is also transferable to another legitimate person when needed.

Multiple Validators Possibility

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TFC SD Multiple validator’s possibility: • No one is eternal, neither are the legal entities participating in our Alliance program. That’s why we provide the opportunity to establish a network of trust containing more than 1 validator. • When you chose to have several validators involved, we push a backup smart contract in the blockchain that holds the necessary shares, n (players/children) -1, that can be used by a second validator. • By doing this we offer an eco-system of trust which is completely redundant in terms of share distribution and validation.

SH-Alliance Program

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The Safe Havens Alliance Program is a group of legal entities which have been screened by safe haven in order to perform all the necessary steps to accomplish our goal, starting the future of trust by securing your assets and by doing that reassuring your relatives, stake holders and your legacy. In the case you are a legal entity whiling to join our Alliance, please send an inquiry to [email protected] and we will get in touch with you as soon as we worked out our legal platform. We will be launching a dedicated trust Alliance portal very soon in order to answer all the legal questions. As soon as our portal will be launched, legal entities, will be able to subtribe themselves, of course legal certification documents will be asked which will help the screening process. The members will be asked to pay an annual fee in order to obtain a subscription to our services.

SHA Protection Plans

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The Family Circle Plan (TFC)

The family circle plan is for those that want to reassure their relatives, that want’s, the day they pass away, there children can access the assets acquired by the Parent. The possibilities are almost endless, shares can be divided in flexible way, while safekeeping the secret in a secure and a transparent way. The fact we add validators in our process keep the process familiar for important matters like the ones that we want to help securing. We add the wonderful world of block chaining in our process which keeps the share decentralized. The decentralized database validator–smart contract mapping adds an extra security feature combined with a state of the art, still simplistic, secret sharing protocol.

The Business Continuity plan (BCP)

The Business Continuity plan is quite similar to the TFC, the main difference is that we speak about stake holders instead of children and that the validation process is different in terms of share unlocking. In a BCP the notary does not need medical rustication documents in order to obtain the missing share through our services, but rather notarial acts prepared by himself. This process plan is currently being developed internally and will come available for use from the moment the Trust Alliance portal is online. BCP can be useful for the distribution of shared secret of multi sig wallets, exchanges, or simple for safekeeping of import passwords/passphrases. Once again the possibilities are endless.


The Investment Circle

The Investment Circle is for those willing to create a fund amongst friends, family members or business stakeholders. Let’s say that 5 friends wants to invest in crypto, and buy each for 1000 $ worth of crypto currency. What are their options? Creating a multi-sig wallet (with all the flaws that were discovered lately) even when it’s completely secure, you will always need trust within the group... ok, How are we going to manage this? Simple! trough Safe Haven Share Distribution protocol. You encrypt the private key and we split the passphrase into shares, the stakeholders will receive equally the same amount of shares. If we consider the formula without a fail-safe mechanism, we have T=(y.n-1)+(X.n) , T = (2 -1) + (2.5) = 1 + 10 = 11 shares to distribute where 1 will be stocked on the blockchain via the validator (legal entity) The conditions, in order to liberate this share, can be anything from price thresholds to milestones to simply having a 100 % consensus to do so. Again the possibilities are endless.


Safe Haven Vault

Good passwords are hard to memorize and can’t be transferred, not in a legal manner anyway, from you to your relatives. This password can be anything, from Facebook, Gmail or any other important account. If you want that ensure yourself that your digital legacy doesn’t die with you, that your relatives can access those accounts even when you are not there anymore, store them through Safe Haven on the blockchain using one of our Share distribution protocols.

Conclusion

Investing in Cryptocurrency and Bitcoin today takes a lot of time and is very challenging, on the other side it will bring massive profits over the years. Securing those assets and be able to protect them against any treat from the outside is something all traders and long term investors have been asking for since a very long time. We are all in this business for the same reason, be financial independent and build a safe and secure future for our relatives. That is why we will develop our decentralized platform and provide our solution worldwide. The Safe Haven Company will make a difference in securing and storing your digital keys or seeds. Building a solution like Safe Haven will bring piece in mind for the investor and relatives. We hope that you are convinced about our platform and different solutions and we can welcome you as one of our investors!

Market

Cryptocurrencies are digital assets that use cryptography, an encryption technique, for security. Cryptocurrencies are primarily used to buy and sell goods and services, though some newer cryptocurrencies also function to provide a set of rules or obligations for its holders. They possess no intrinsic value in that they are not redeemable for another commodity, such as gold. Unlike traditional currency, they are not issued by a central authority and are not considered legal tender. At this point, use of cryptocurrencies is largely limited to “early adopters.” For scale, there are around 10 million Bitcoin holders worldwide, with around half holding Bitcoin purely for investment purposes. Objectively, cryptocurrencies are not necessary because government-backed currencies function adequately. For most adopters, the advantages of cryptocurrencies are theoretical. Therefore, mainstream adoption will only come when there is a significant tangible benefit of using a cryptocurrency. So what are the advantages to using them? Cryptocurrency Exchanges Cryptocurrency exchanges are websites where individuals can buy, sell, or exchange cryptocurrencies for other digital currency or traditional currency. The exchanges can convert cryptocurrencies into major government-backed currencies, and can convert cryptocurrencies into other cryptocurrencies. Some of the largest exchanges include Poloniex, Bitfinex, Kraken, and GDAX, which can trade more than $100 million (equivalent) per day. Almost every exchange is subject to government anti-money laundering regulations, and customers are required to provide proof of identity when opening an account.

Instead of exchanges, people sometimes use peer-to-peer transactions via sites like LocalBitcoins, which allow traders to avoid disclosing personal information. In a peer-to-peer transaction, participants trade cryptocurrencies in transactions via software without the involvement of any other intermediary. Cryptocurrency Wallets Cryptocurrency wallets are necessary for users to send and receive digital currency and monitor their balance. Wallets can be either hardware or software, though hardware wallets are considered more secure. For example, the Ledger wallet looks like a USB thumb drive, and connects to a computer’s USB port. While the transactions and balances for a bitcoin account is recorded on the blockchain itself, the private key used to sign new transactions is saved inside the Ledger wallet. When you try to create a new transaction, your computer asks the wallet to sign it and then broadcasts it to the blockchain. Since the private key never leaves the hardware wallet, your bitcoins are safe, even if your computer is hacked. Still, unless backed up, losing the wallet would result in the loss of the holder’s assets. In contrast, a software wallet such as the Coin base wallet is virtual. This type of software device can place the holder’s funds online in the possession of the wallet provider, which has added risk. With more people and more money flowing into the cryptocurrencies market, more people have to open exchanges or wallets and get private keys. Safe Haven is building the perfect solution. Basically every person that opens a wallet, buys a cryptocurrency can be a Safe Haven client. Our potential to grow in this market is huge! We are confident that Safe Haven will make a difference.

Token

The SHAT-token is an ERC20 token built on top of Ethereum. ERC20 standard was introduced on the Ethereum blockchain in order to allow developers to design decentralized apps (Dapps) to work with tokens out of the box without the need to reinvent the wheel every time a new token system is introduced. Therefore, with ERC20, anyone with an idea can deploy a product on the blockchain without having to undergo the whole process of designing the platform. With ERC20, we are able to define a common set of rules for the Ethereum-based SHAT to adhere to. We are able to know in advance how the token will behave based on the standard. The SHAT token is developed to heal the broken market we described in this whitepaper. The first phase of development concerns the amount of tokens we are creating. The SHAT token will be used as a gas in the process. ==