Introduction

Hello guys! Welcome to the second development update on my journey as an Ethereum Protocol Fellow. In this update, I will provide insights into the progress I've made on two significant projects: Improving bip32 hdkey (Nested Key Generation) and my exploration of the FHE-DKSAP (Fully Homomorphic Encryption - Dual Key Stealth Address Protocol) to enhance transaction anonymity. Additionally, I will touch upon my personal interest in learning Nim and my hobbyist exploration of the verkle tree during my fellowship.

Part 1: Improving Bip32 HDKey (Nested Key Generation)

1.1 Understanding the Fundamentals

I learnt the fundamentals of BIP32, which explains how master keys and master chain code are created from a BIP39 seed. Here is a rough image of my note showing a diagram of BIP32 Child Key Derivation (CKD)

1.2 Notes and Documentation

I have maintained detailed notes throughout this research process, and these notes will be summarized and uploaded later in the week to the notes directory within the cohort-four repository.

1.3 Specification for Implementation

The next phase for me will be working on crafting a specification for the implementation of the proposed bip32 hd key improvements. This specification will include a technical approach, methodologies, and expected outcomes.

Part 2: Exploring FHE-DKSAP for Enhanced Transaction Anonymity

2.1 In-depth Research on FHE-DKSAP

I also read the work of some other fellow (Mason) on Stealth Addresses. His project is titled FHE-DKSAP (Fully Homomorphic Encryption - Dual Key Stealth Address). I understand some of the schemes discussed but I am new to Fully Homomorphic Encryption (FHE). There are lot of keys exposed in this proposal that I am not comfortable with, so I am going to read more on FHE to understand the underlying technology and be certain that it is not compromised. I also believe there is a lot to explore within this project and it's definitely something I would be contributing to.

Part 3: Identifying Contribution Areas

While the Ethereum fellowship offers numerous exciting projects to contribute to, I acknowledge the significance of maintaining focused efforts. For the time being, I intend to concentrate on key aspects of both bip32 hd key improvements and FHE-DKSAP, ensuring meaningful and impactful contributions to both projects.

3.1 Learning Nim and Exploring Verkle tree

Although my primary focus remains on the 2 projects stated above, I would be learning Nim and exploring Verkle trees more as an hobby. This will help satisfy my curiosity and expand my knowledge.

Conclusion

My dedication lies in making significant contributions to the improvement of bip32 hd key and FHE-DKSAP.