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README.md
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README.md
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@ -73,13 +73,48 @@ find each other, a true p2p connection is established and there is no flow of in
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server, only between the peers.
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webRTC uses DTLS to secure communications between the peers, and each peer use a self-signed
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certificate. On top of that, *Copay* peers authenticate theyself by 2 factors: An identity key
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and a network key. The identity key is a ECDSA public key derived from the
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certificate.
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Security model
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--------------
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On top of webRTC, *Copay* peers authenticate as part of the "wallet ring"(WR) by 2 factors: An identity
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key and a network key.
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The *identity key* is a ECDSA public key derived from their extended public
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key using a specific BIP32 branch. This special public key is never used for Bitcoin address creation, and
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should only be know by members of the WR.
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In *Copay* this special public key is named *copayerId*. To register into the peerjs server, while not
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reveling its copayerId to an entity outside the WR, each peer hash the copayerId and pass a SIN
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to the server. peer discovery is then entirely done using peer's SINs. Note that all copayers in the WR
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know the complete copayerIDs of the peers.
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The *network key* is a random key generated when the wallet is created an shared in the initial
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'secret string' that peers distribute while the wallet is been created. The network key is then stored
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by each peer on the wallet configuration. The network key is used for establishing a CCM/AES
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authenticated encrypted channel between all peers, on top of webRTC. The main reason of implementing
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the *network key* is to prevent man-in-the-middle attacks from a compromised peerjs server.
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Secret String
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-------------
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When a wallet is created, a secret string is provided to invite new peers to the new wallet. This string
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has the following format:
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- CopayerId of the peer generating the string. This is a 33 bytes ECDSA public key, as explained above.
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This allow the receiving peer to locate the generating peer.
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- Network Key. A 8 byte string to encrypt and sign the peers communication.
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The string is encoded using bitcoin's Base8Check encoding, to prevent transmision errors.
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Peer authentication
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-------------------
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It is important to note that all data in the wallet is shared between *all peers*, with the exception of each
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peer's private key, with are never transmited throught the network. There is not private messages or, in general,
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information that belongs to a subset of the WR.
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wallet is created, the pubkey of the creator and a random 'network key' is created. This two parameters
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need to be securely shared between the peers, when setting up the wallet.
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