ARPA Chain

ARPA Chain, now known as ARPA Network, was founded in 2018 as a privacy-preserving Multi-party Computation (MPC) network. Initially, it was designed to improve the fairness, security, and privacy of blockchains by providing a decentralized secure computation network. Over time, the project has evolved to focus on its threshold BLS signature network, which serves as the infrastructure for various applications such as verifiable Random Number Generator (RNG), secure wallets, cross-chain bridges, and decentralized custody across multiple blockchains.

ARPA Mainnet has completed over 224,000 computation tasks, demonstrating its experience in MPC and cryptography. This expertise has led to the development of innovative threshold BLS signature schemes (TSS-BLS) and the current ARPA Network.

ARPA Chain (ARPA) is a blockchain-agnostic layer-2 scaling solution designed to enhance the privacy and scalability of various blockchain networks. It operates as a decentralized computational network, enabling users to share their computational power and storage to earn rewards. Here's an overview of how it works:

ARPA Chain consists of two main layers: the protocol layer and the computational layer. The protocol layer is a permissionless public blockchain that allows anyone to join and participate. This layer is responsible for managing the network, tracking node activity, and rewarding or penalizing nodes based on their behavior.

The computational layer is where the actual computations take place. This layer is responsible for executing smart contracts and performing multi-party computations. Nodes on this layer must meet specific criteria to qualify and are rewarded or penalized based on their performance.

ARPA Chain leverages Secure Multi-Party Computation (SMPC) to ensure high-security, cryptographically verified data exchange between multiple parties. This technology allows for the separation of data utility from ownership, enabling multiple users to collaboratively analyze data without sharing sensitive information. SMPC is considered more advanced in terms of privacy protection compared to other technologies like homomorphic encryption, zk-SNARKs, and Zero-Knowledge Proofs.

ARPA Chain employs several unique consensus mechanisms to ensure the validity and security of the network. These include:

• Proof of Correctness: This mechanism replaces traditional Proof of Work (PoW) and is responsible for verifying the correctness of computations performed by nodes.
• Proof of Computation: This mechanism tracks the amount of computation performed by nodes and rewards them accordingly.
• Proof of Secureness: This mechanism verifies computations conducted off-chain in Trusted Execution Environments (TEEs) to ensure their integrity.

ARPA Chain supports various applications, including:

• Verifiable Random Number Generator (RNG): ARPA can generate decentralized, tamper-proof random numbers.
• Secure Wallet: ARPA's threshold BLS signature scheme can be used to create secure wallets.
• Cross-Chain Bridge: ARPA enables the creation of cross-chain bridges, facilitating interactions between different blockchain networks.
• Decentralized Asset Custody: ARPA can be used for decentralized asset custody, ensuring secure and transparent management of digital assets.

The ARPA token is the native cryptocurrency of the project and has several use cases:

• Computation Task Rewards: Node operators can earn ARPA tokens by completing computation tasks.
• Service Fees: Clients can pay for computation services using ARPA tokens.
• Collateral for Security Deposits: Node operators must stake a certain amount of ARPA tokens as security deposits to ensure network security.

Overall, ARPA Chain is designed to provide a scalable, secure, and private solution for various blockchain networks, enabling a wide range of applications and use cases.

The token ARPA Chain (ARPA) has several strengths that make it an attractive project:

1. Privacy-Preserving: ARPA Chain is designed to prioritize privacy through its Secure Multi-Party Computation (SMPC) and secret-sharing technology. This ensures that data remains private and secure while still allowing for efficient computation.

2. Scalability: ARPA Chain addresses scalability concerns by employing sharding, which allows for off-chain computations in Trusted Execution Environments (TEEs). This provides virtually unlimited data storage capacity and enhances transaction throughput.

3. Interoperability: As a blockchain-agnostic Layer-2 solution, ARPA Chain is compatible with multiple top-performing smart contract programmable networks, including Ethereum and EOS. This flexibility enables developers to choose the blockchain that best suits their needs while leveraging ARPA's privacy and scalability features.

4. Governance: ARPA token holders have a say in the network's future through a community governance protocol. This ensures that the average user is heard and that the network remains cohesive and responsive to its stakeholders.

5. Security: ARPA Chain's dual-tiered structure, comprising a protocol layer and a computation layer, ensures that nodes are incentivized to behave correctly. The network also employs a variety of consensus mechanisms, including Proof of Correctness, Proof of Computation, and Proof of Secureness, to maintain security and integrity.

6. Flexibility: ARPA Chain supports various applications utilizing threshold signature schemes due to its flexible network topology. This allows for customization of signature policies to cater to different use cases.

7. Decentralized: ARPA Network is designed to be decentralized, with multiple entities running individual nodes in different regions. This makes the network tamper-proof from a physical perspective and ensures that signatures are unlikely to be forged or manipulated.

These strengths position ARPA Chain as a robust and versatile solution for privacy-preserving computation and scalability in the blockchain ecosystem.

ARPA Chain (ARPA) carries several financial risks. One significant risk is the potential for incorrect data, which can occur when computations are done off-chain. This can lead to errors and inaccuracies in the data, which can have financial implications for users and developers relying on the network.

Another risk is the use of leverage, which can result in rapid losses of money. This is particularly important for users who engage in trading activities on exchanges where ARPA is listed, such as Kraken, KuCoin, and Binance.

Additionally, as a decentralized computational network, ARPA Chain is exposed to the risks associated with blockchain technology, including the potential for security breaches and the volatility of cryptocurrency markets. These risks can impact the value of ARPA tokens and the overall stability of the network.

Finally, the use of cryptographic private smart contracts and other privacy features may also introduce risks related to the complexity of these technologies. If not properly implemented or managed, these features can create vulnerabilities that can be exploited by malicious actors, leading to financial losses for users.

• Felix Xu: Co-Founder and CEO of ARPA Chain, who led the development of the Multi-Party Computation (MPC) protocol and has been instrumental in shaping the project's vision and direction.