Extreme Investor Network: Unveiling Sui’s Enhanced Security and Efficiency with Shared Custody Model for DeFi
In the ever-evolving world of decentralized finance (DeFi), blockchain platform Sui has made waves with its innovative approach to enhancing security and efficiency. By introducing a shared custody model within its object-centric data framework, Sui is revolutionizing the way DeFi applications operate.
What is Shared Custody?
Shared custody is a concept where multiple parties have access to and can interact with on-chain states within DeFi applications. Traditionally, this sharing of access is achieved through account-centric models. However, Sui’s object-centric framework presents unique challenges and opportunities in this regard.
Implementing Shared Custody on Sui
Sui’s shared custody model leverages its object-ownership structure, allowing multiple entities to interact with a single object. While this approach offers increased accessibility, it also comes with potential risks such as unrestricted access and misuse. To address these challenges, Sui has introduced a custom object called an ‘Order’ that encapsulates rules and restrictions on fund access and management.
Challenges and Solutions
While the shared custody model improves accessibility, it also introduces complexities related to gas fees and network congestion. To mitigate these issues, Sui has proposed the use of multi-signature (multisig) transactions. This approach maintains the benefits of owned objects while allowing multiple parties permissioned access, reducing gas fees and network congestion. The use of multisig transactions enhances security and efficiency by ensuring only authorized parties can interact with the object.
Security and User Experience Focus
Sui places a strong emphasis on user security and transparency. The shared custody model enforces strict on-chain access controls to protect users’ funds. By leveraging multisig transactions, programmable transaction blocks, and sponsored transactions, Sui offers a robust framework for secure and efficient DeFi operations.
Future Prospects with Sui’s Shared Custody Model
With its groundbreaking implementation of the shared custody model, Sui is setting a new standard for security and efficiency in decentralized finance. This model not only enhances user security and efficiency but also provides a transparent user experience. Sui has ambitious plans to expand this shared custody model to other domains, pushing the boundaries of Web3 applications.
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