Frequently Asked Questions
For terms definition, visit Glossary.
What is Self Chain?
Layer 1 Blockchain Designed for Trustless, Next Generation Private Key Recovery. The purpose of the chain is to store the encrypted client-side backups, as well as, the master decryption key in Keyless infrastructure.
What problems does the Self Chain solve?
The Self Chain solves three primary problems in crypto wallet infrastructure: unfriendly UI/UX, lack of privacy, and needed world-class security.
What are Keyless Wallets?
Keyless wallets replace the traditional private key or seed phrases with two independently created mathematical "secret shares." One share is stored on your mobile device and the other on the Self Chain as the state machine.
Why are Keyless Wallets more secure than private key or seed phrase wallets?
Keyless wallets work by slipping the traditional private keys or seed phrases into multiple pieces, and then distributing them in multiple places to ensure no one person has full access to the key. So that the private key is always used in a distributed manner, there is no single point of vulnerability. Even if an attacker tries to get access to one of the two shares, they can’t access all of the "secret shares" simultaneously, making your digital assets much safer than in the traditional private key architecture.
What is the $SLF token?
The $SLF is the Self Chain’s primary token and secures the chain and pays for the transaction fee.
What is $SLF Staking?
Staking is earning semi-passive income from your $SLF tokens while contributing to the Self Chain's operations. You delegate your tokens to one or more validators who have an important role in maintaining the integrity of the network. It is important to do due diligence on the validators you choose.
What is Self Chain Node?
Full nodes typically are computers that synchronize with a blockchain or Self Chain network in order to store a record of transactions or perform other functions.
On Self Chain, full nodes are primarily useful for those who want to prepare to become a validator node or wish to operate a fully trustless connection point to the network for account control or network monitoring, via the Core API.
What is a Validator Node?
A validator node is a special type of full node that participates in “consensus.” By participating in consensus, validator nodes become responsible for verifying, voting on, and maintaining a record of transactions. The Self Chain protocol only allows the top 125 validators to participate in consensus. These are selected based on the amount of stake $SLF token holders have delegated to them.
Validator nodes underpin the security of Self Chain network. That is why it is of vital importance to ensure that validator nodes remain both performant and trustworthy.
What is the wallet that supports Self Chain and the $SLF token?
Kelpr wallet is integrated with the $SLF Staking Application. You can use Kelpr to store $SLF, and manage staking positions with their wallet web extension.
How do I get started on Self Chain?
To get started, first, download the Keplr browser extension and create a wallet using this simple guide. Then, to pay for transaction fees and interact with apps on Self Chain, get some $SLF on exchanges (DEXs or CEXs).
What are the benefits of holding $SLF?
Holding and staking $SLF allows you to receive rewards, these rewards come from fees, and new $SLF that are unlocked during the creation of every block on the Self Chain. In addition, after staking your $SLF, you will also be able to vote on proposals to help determine the future of Self Chain.
What are the benefits of Keyless wallets?
There are several benefits of using MPC technology for wallets, namely not needing to trust third parties, increased data privacy, higher accuracy, removing single points of failure, MPC wallets are harder to hack, and MPC wallets rely less on cold storage.
Trusted third-party - data can be shared in a distributed manner without any third parties
Data privacy - data is encrypted at rest and in transit so no private information is revealed or compromised
High accuracy - MPC provides highly accurate results for different computations using cryptography
Removes single points of failure (SPOF) - private keys are not stored in one single place
Hackers need to work much harder - a hacker would need to attack multiple parties across systems and locations
Less reliance on cold storage - users can only hold their assets online and no longer need cold-storage devices
What Are Good Qualities in a Validator?
When perusing a list of validators it can be not easy to figure out exactly where you should be staking your coins. There are, however, some qualities that you should consider when picking a validator:
High Uptime
Although PoS blockchains don’t require upfront input of sophisticated hardware, validators still require technical know-how to set up a validator node with limited disruption. The staking process, after all, requires nodes with 100% uptime to ensure improved staking returns. Pretty much all validators need industrial-grade internet.
Reliable
A validator's reliability correlates with their level of SLF-bonded ratio. A reliable validator has a high ratio as it shows how much they stand to lose.
Frequent Updates
A good quality validator should also update their nodes to prevent any loopholes for an attack that could lead to a penalty on their stake. The best validators have a website or presence on social media to provide frequent updates to their delegators.
Low (But Not Zero) Fees
Finally, given that staking your tokens is all aimed at making gains, a validator who charges a high fee can limit the returns you receive as a delegator. Validators with low fees can help maximize returns.
One important caveat is that you should pick a validator with at least some fees. If you pick a validator with 0% fees then you are often ineligible for future airdrops. In addition, validators advertising 0% fees are sometimes scammers (they will increase their fees exponentially in what amounts to a bait-and-switch).
Last updated