Delegated Authorization Network (DAN) is a programmable authorization network that allows AI agents to perform actions on behalf of users without requiring them to sign transactions.

 DAN does this by selectively allowing AI agents to access a user's "Delegated Auth" keys, which are stored on AVSs, to authorize transactions. However, DAN doesn't give AI agents complete control. 

TL;DR

  • Think of DAN as a secure assistant for your online accounts. You control what DAN can see (like your bank or email) and it acts on your behalf, following your instructions.

  • DAN helps you use advanced features in web3 applications without needing to manage passwords or permissions yourself.

  • DAN uses secure storage, user-defined permissions, and clear transaction tracking to keep your accounts safe.

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Think  DAN as a permission manager in the digital environment. You give specific permission to DAN to be able to view specific sections of your profile such as your bank or your e-mail. DAN then becomes your virtual personal assistant and takes full control of your permissions and what is displayed to you and what is hidden.

In this manner, the features of Web3 applications can be utilized without the need to type passwords or set up various permissions on your own. DAN does it all for you, it is safe and secure way of interfacing with the internet.

💡 Security Measures in DAN 

DAN incorporates security measures to ensure safe interaction between AI agents and blockchain applications. 

  • EigenLayer Actively Validated Service (AVS): DAN stores delegated authorization keys on a secure EigenLayer AVS. This eliminates the risk of AI agents accessing your private keys directly.

  • User-Defined Permissions: Users have granular control over the permissions granted to DAN. This ensures AI agents can only perform actions that you've explicitly authorized.

  • Transparent Transactions: All transactions executed by DAN are traceable and verifiable by the user. This allows you to monitor activity and maintain control over your accounts.

🔼 How DAN Making AI Powered Web3

  • Delegate to AI: DAN It enables AI agents to perform actions on user’s behalf without requiring them to sign any transaction. It enables this by selectively allowing AI agents to have access to user’s ‘Delegated Auth’ keys stored on AVSs to authorise these transactions. But it doesn’t give complete control to the AI agents.

  • Programmable Authorisation: DAN also enforces that the AI agents operate under the guidance and constraints of user-defined rules and permissions. These permissions can be programmed to offer a wide range of constraints - limit the access to specific assets, define the maximum value, whitelist only specific contract addresses, limit the time duration and so on.

  • Secured by AVS: DAN decentralises the cryptographically secure storage of users’ keys & permissions, mitigating any risk of compromise. This ensures delegation is secured by leveraging Ethereum’s economic security via EigenLayer AVS node operators.

⚡ How does it Work?

  • Delegated Auth Key Generation : The user interaction starts with the AI project generating a new ‘delegated auth key’ & setting the permission for the user.

  • Distributed Key Shares across network nodes :  The user’s Delegated Auth Key is split into Key Shards, and distributed across various nodes of the DAN network. This unique setup ensures that no single party has access to the entire key, substantially enhancing security.

  • Validation Request to node operators : When an AI agent recommends a batch of transactions on behalf of a user, each Network Node individually validates these requests against Scoped Permissions.

  • Distributed Signature Generation : Only once a threshold number of nodes verify that the transaction request is within permissions, DAN generates the signature required to sign these transactions.

  • EigenLayer Economic Security : To ensure that each node operates with integrity, DAN leverages the economic security features of EigenLayer Nodes stake their Ethereum holdings, which can be slashed in the event of malicious activities, thus ensuring a reliable and honest network operation.

🏵️ Benefits

  • Superfast Signature Generation : The Silent Shard, an integral part of the MPC network, employs the DKLs23 protocol, which uses Oblivious Transfer (OT) functions instead of traditional cryptographic methods like Paillier encryption. This results in significantly faster computation times.

    This means Biconomy DAN can generate signatures in the order of tens of milliseconds, ensuring rapid and efficient off-chain authorizations without compromising security.

  • No additional gas fees : As the authorisation happens off-chain, DAN does not introduce any additional network costs.  

🔬 Resources 

> Biconomy Blog @Biconomy

> Datawallet

> Blockbeats 

> Cointelegraph 

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Account Abstraction & Web3 automation is what Biconomy currently building they're one of pioneer in Account Abstraction ( AA) And now leading the wheels of Web3 Automation through DAN. 

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