CARROT: Cryptonote Address on Rerandomizable-RingCT-Output Transactions

Status: In Development

Salvium is currently migrating to the CARROT addressing protocol. This feature is under active development and not yet fully implemented in the current release.

Overview

CARROT is an addressing protocol designed to enhance privacy and usability in Cryptonote-based cryptocurrencies. The acronym stands for Cryptonote Address on Rerandomizable-RingCT-Output Transactions. Originally proposed for Monero, CARROT introduces significant improvements to address structure, wallet functionality, and transaction privacy that Salvium is implementing as a foundation for its SPARC protocol.

Key Features

Full View-Only Wallets

Traditional Limitation: In standard Cryptonote systems, view-only wallets can only detect incoming transactions, resulting in inaccurate balance displays
CARROT Solution: Enables view-only wallets to monitor both incoming and outgoing transactions without compromising security
Implementation: Uses a view-balance key that can track all wallet activity without the ability to spend

Forward Secrecy

Privacy Protection: Ensures that even if encryption is broken in the future, past transaction details remain confidential
Key Rotation: Implements key rotation mechanisms to limit the impact of key compromise
Long-term Security: Provides protection for historical transaction data against future cryptographic advances

Enhanced Security Against Known Attacks

CARROT mitigates specific vulnerabilities in traditional Cryptonote systems:

Janus Attack: Prevents attackers from linking multiple addresses to the same owner by enabling recipients to recognize malicious outputs
Burning Bug: Eliminates a vulnerability where users could inadvertently lose funds when spending from duplicate outputs
Duplicate Output Issues: Provides mechanisms to safely handle duplicate outputs in the blockchain

Rerandomizable RingCT Transactions

Enhanced Anonymity Set: Works with Full-Chain Membership Proofs to allow all transaction outputs on the blockchain to serve as potential decoys
Improved Privacy: Significantly enhances anonymity compared to traditional ring signatures by enabling larger, more effective anonymity sets
Unlinkability: Makes transactions more resistant to chain analysis and statistical attacks

Technical Architecture

Addressing System

CARROT implements a sophisticated addressing system with:

Advanced Key Hierarchy: Multiple key types for different functional needs
Wallet Key Tiers: Separation of keys by capability (viewing, spending, address generation)
Address Format: Computationally indistinguishable from legacy addresses for privacy and compatibility

Key Components

View-Balance Key: Private key that can view all incoming and outgoing funds
Find-Received Key: Capability to identify incoming transactions
Generate-Address Key: Ability to create new addresses without full wallet access
Master Key: Root key that enables all wallet functions including spending

Wallet Operations

CARROT enables advanced wallet operations:

Tiered Access Control: Different keys for different levels of wallet access
Subaddress Management: Improved management of multiple addresses without look-ahead limitations
Address Recognition: Enhanced methods for identifying owned transactions on the blockchain

Integration with Salvium

Salvium is implementing CARROT by:

Implementing Core Addressing: Using the CARROT addressing scheme as a foundation
Planning Extension with SPARC: Adding spend proofs and anonymized returns capabilities
Optimizing for Compliance: Adapting CARROT to work within regulatory frameworks while maintaining privacy features

Migration Considerations

Note

Salvium is currently evaluating the migration process to CARROT. Users will need to create new wallets to access CARROT features when implemented.

The migration to CARROT will involve:

New wallet generation for users who want to use CARROT features
Transferring funds from legacy to new CARROT-enabled wallets
Updated wallet software supporting the new addressing scheme
Backward compatibility for a transition period, allowing existing wallets to continue functioning

Quantum Resistance Considerations

CARROT includes design elements with future security in mind:

Key Derivation: Methods designed with long-term security considerations
Forward Secrecy: Protection of historical data even if future keys are compromised
Address Construction: Approaches that aim to maintain privacy over the long term

Benefits for Users

Improved Privacy: Enhanced protection against various forms of transaction analysis
Better User Experience: More accurate balance information in all wallet types
Future-Proofing: Design considerations for emerging threats
Seamless Upgrades: Backward compatibility with existing addresses

Relationship to Monero

CARROT was originally proposed for implementation in Monero but has not yet been integrated into the Monero codebase. Salvium is adapting and implementing this protocol to serve as the foundation for its privacy and compliance features.

Technical Documentation

For detailed technical specifications, including cryptographic constructions and security proofs, please refer to the Salvium White Paper in our documentation repository.

FAQ

Q: When will CARROT be fully implemented in Salvium?
A: CARROT is currently in development. Check the roadmap for the latest implementation timeline.

Q: Will I need to create a new wallet when CARROT is implemented?
A: It's likely that users will need to create new wallets. The Salvium team is evaluating this requirement and will provide guidance before implementation.

Q: Is CARROT backward compatible with existing Salvium addresses?
A: While the network will maintain compatibility with existing addresses during a transition period, users will need to create new wallets to access and use CARROT features. Existing wallets will continue to work but won't benefit from the enhanced privacy and functionality of CARROT.

Q: How does CARROT improve on traditional Cryptonote addressing?
A: CARROT adds full view-only wallet capabilities, forward secrecy, protection against various attacks, and support for rerandomizable transactions.

Q: Does CARROT require changes to the consensus protocol?
A: CARROT primarily affects address formats and wallet operations rather than consensus rules, making it relatively easy to integrate.

Q: How does CARROT relate to SPARC?
A: CARROT provides the addressing foundation that SPARC will extend with spend proofs and anonymized returns capabilities.

Q: Is CARROT exclusive to Salvium?
A: No, CARROT is an open protocol originally proposed for Monero. Salvium is implementing it for its specific requirements.