Dominic Williams, CTO of String Labs, presents at Stanford Computer Forum on applications of Verifiable Random Function (VRF).
= Abstract = We argue that a source of unmanipulable and unpredictable random values provides the most effective means to drive and organize decentralized networks and their higher-level applications.
We demonstrate this idea by introducing two ingenious systems. Firstly we review how a network can use a “Threshold Relay” system that applies unique deterministic threshold signature cryptography (Dan Boneh’s BLS signature scheme) as a VRF to produce such a sequence of random values, further exploring how a robust high performance blockchain can be built upon the framework.
Then we review how a network created using Threshold Relay can host “smart contract” software implementing an autonomous commercial banking system that applies generated randomness to give out loans algorithmically.
String Labs is currently incorporating both methodologies into the DFINITY and Phi projects.