Sutterized Hongbao DApp

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Overview

The Shutterized Hongbao DApp is a decentralized application for secure cryptocurrency gifting on the Gnosis Chain. The DApp leverages Shutter encryption for time-locked transfers and offers features like password protection and a non-custodial, in-browser passkey wallet for enhanced security and user control.

A hongbao is a traditional red envelope commonly used in Chinese culture to gift money during special occasions like Lunar New Year, symbolizing good luck and prosperity.

Important: This is extremely early alpha software using a centralized version of Shutter. Use at your own risk—assume potential loss of all connected funds.

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Features

1. Secure Gifting: Send cryptocurrency with a time-locked mechanism.
2. Shutter Encryption: Ensures private keys remain protected until the specified unlock time.
3. Password Protection: Optionally secure Hongbao with an additional password for recipient decryption.
4. Non-Custodial Passkey Wallet: Fully in-browser wallet without custodial dependency.
5. One-Time Private Keys: Each Hongbao is tied to a unique private key.
6. User-Friendly Interface: Simple workflows for both senders and recipients.

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New Features

Password Protection

• You can now protect the Hongbao with a password, adding another layer of security.
• The recipient must enter the password to decrypt the private key before claiming funds.

Non-Custodial In-Browser Passkey Wallet

• A fully non-custodial wallet created in-browser for secure fund management.
• Operates independently of MetaMask or other external wallets.
• Funds are swept directly into this wallet if selected during redemption.

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How It Works

Sending a Hongbao

1. Create a One-Time Private Key:

   • Generate a unique Ethereum account with a private key.
   • Encrypt the private key using Shutter's service, locking it until a specified timestamp.

2. Encrypt the Private Key:

   • Use Shutter encryption for time-locking.
   • Optionally, encrypt the result with a user-defined password.

3. Fund the Hongbao:

   • Transfer xDai to the newly generated account.

4. Generate a Redemption Link:

   • Share a link containing the encrypted private key, timestamp, and amount with the recipient.

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Redeeming a Hongbao

1. Verify the Hongbao:

   • Open the redemption link and check Hongbao status.
   • If password-protected, enter the password to decrypt the key.

2. Request Decryption:

   • After the unlock time, request the final decryption key from Shutter.

3. Sweep Funds:

   • Use MetaMask or the in-browser passkey wallet to sweep funds to the recipient's wallet.

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Non-Custodial In-Browser Passkey Wallet

Key Features

• Decentralized: Fully non-custodial and managed directly in the browser.
• Secure: Private keys are only accessible locally, within the user's browser session.
• Independent: Operates without reliance on MetaMask or other external wallets.

Workflow

• Recipients can use the passkey wallet to redeem Hongbao and sweep funds securely into their locally stored wallet.
• The wallet is ephemeral—created and managed entirely in-browser, enhancing privacy.

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Password Protection

How It Works

• When creating a Hongbao, senders can set an optional password.
• Recipients must provide this password during redemption to decrypt the intermediate private key before requesting the final decryption from Shutter.

Benefits

• Enhances security by ensuring only intended recipients can access the private key.
• Combines with time-lock encryption for double-layer protection.

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Technical Flow

Sending a Hongbao

1. Generate Private Key: A one-time-use private key is generated.
2. Encrypt with Shutter: The key is encrypted for time-lock protection.
3. Optionally Encrypt with Password: The Shutter-encrypted key is wrapped with an additional password encryption.
4. Fund and Share: Funds are transferred, and a redemption link is generated.

Redeeming a Hongbao

1. Decrypt with Password (if applicable): The recipient decrypts the key with the password.
2. Decrypt with Shutter: The final key is retrieved from Shutter after the unlock time.
3. Sweep Funds: Use the fully decrypted key to transfer funds to a MetaMask account or passkey wallet.

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Usage Instructions

Sending a Hongbao

1. Choose Wallet:

   • Use MetaMask or the passkey wallet for funding.

2. Set Amount and Lock Time:

   • Specify the amount and unlock timestamp.

3. Add Password (Optional):

   • Enhance security with password protection.

4. Create and Share:

   • Generate the Hongbao and share the link with the recipient.

Redeeming a Hongbao

1. Verify Details:

   • Open the Hongbao link and check its status.

2. Provide Password (if required):

   • Enter the password to decrypt the key.

3. Sweep Funds:

   • Use MetaMask or the passkey wallet to claim funds.

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FAQ

What happens if the Hongbao is redeemed early?

Funds cannot be accessed before the unlock time.

What if I lose my password?

If password-protected, losing the password makes decryption impossible.

What happens if I lose my redemption link?

The link contains critical information. Losing it means the Hongbao cannot be redeemed.

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Technical Dependencies

• Web3.js: Blockchain interactions.
• Ethers.js: Ethereum wallet integration for the passkey wallet.
• CryptoJS & Web Crypto API: Encryption and decryption utilities.
• Shutter Network: Encryption and decryption services.