Full webinar here: https://www.brighttalk.com/webcast/17700/369764?utm_source=Unbound+Tech&utm_medium=brighttalk&utm_campaign=369764

1. High Speed and Secure:
The Future of
Cryptocurrency
Exchanges
Gin Chao, Chief Strategy Officer (CSO), Binance
Professor Yehuda Lindell, Co-founder and CEO,
Unbound Tech

2. 2
Yehuda Lindell is the CEO and co-founder of Unbound
Tech. Yehuda is also a professor of Computer Science
at Bar-Ilan University in Israel, and a cryptographer with
expertise in secure multiparty computation (MPC) that
forms the technological core of Unbound’s solutions. He
has published over 100 scientific articles, and authored
one of the most widely used textbooks on modern
cryptography. Yehuda served as the Chief Scientist of
Unbound from its inception until February 2019, when
he took over the role as CEO.
Gin Chao currently serves as Chief Strategy Officer for
Binance, where he leads the corporate development
and legal departments. He previously spent 10 years in
Asia working for NBA and Dell in senior corporate
development roles. Prior to that, he worked for 15 years
in the US at Sovereign Investment Company leading
acquisitions, Deutsche Bank’s investment banking
group raising over $2 billion for Web 1.0 companies,
and Price Waterhouse’s management consulting
division.
Prof. Yehuda Lindell
Co-Founder and CEO| Unbound Tech
Gin Chao
Chief Strategy Officer| Binance

3. exchange the world
The Future of Cryptocurrency Exchanges
Gin Chao
Strategy Officer

9. FREEDOM.
Our vision is to increase the freedom of money globally.
We believe that by spreading this freedom, we can significantly
improve lives around the world.
Binance’s Vision

10. BUILD.
Our mission is to provide core infrastructure services
for organizing the world’s crypto.
Binance’s Mission

11. What We Value
➢ Mission, over Money
➢ Leaders, not Managers
➢ Freedom, with Accountability
➢ Transparency & Authenticity
➢ Communication & Engagement

12. 1,400,000 Tx/s
No. 1 Volume @ <1% load
Best Security & Performance

13. acceptance rate on projects applying to list
Quality Project Selection
Less than 3%

14. satisfaction rate
Leading Customer Support
95%
of tickets solved in 24 hours80%

15. Binance is GLOBAL
Countries &
regions
Users from
180+
Countries &
regions
Team members from
40+
Languages
Interface in
15+

16. Trading Volume
Rankings
From 0 to #1 in 5 months
No.5Day 42 Day 92 Day 156 Day 165
No.10 No. 3
World
No.

17. Community Comes First
Followers on
Social Media
More than
1.4m
Users on
Telegram
More than
200k
Language
Groups on
Telegram
More than
30

18. 50%market volume on majority of listings
Liquidity
More than
$2 bndaily trading volume on average
Approximately

19. The Binance
Ecosystem
Binance
Exchange
Charity
Launchpad
Trust
Wallet
Academy
FuturesResearch
Labs
Info
Fiat Gateways:
⬩ Uganda
⬩ Jersey
⬩ Singapore
⬩ Australia
⬩ US (soon!)
DEX & Chain
UGX
GBP/EUR
SGD
AUD
USD
X

20. Modern and Secure Blockchain
with Instant Transaction Finality
Binance Chain, a blockchain software system developed
by Binance and the community, is a community-driven
project with developers and contributors from all over the
world.
Binance DEX is the decentralized exchange feature
developed on top of the Binance Chain blockchain:
https://www.binance.org/
1” Block time & instant finality
1000+ TPS

21. Binance Coin (BNB)
Binance Coin (BNB) is the native asset on Binance Chain, a
blockchain software system developed by Binance and the
community. The coin has multiple forms of utility and powers the
Binance Ecosystem as its underlying gas.
With a $3.5 billion market cap, BNB is the seventh largest
cryptocurrency and one of the best performing cryptocurrencies
of 2018 and 2019.

23. Jul 14
Fiat launch
Acquisition/Investment
Sep 11 Oct 30 Nov 6
Feb 5 Mar 23
Jan 16 Jan 23 Jan 24 Jan 28
201720182019
Jul 31 Aug 14 Aug 22 Sep 20 Oct 4 Oct 17 Nov 9 Dec 6
The Story So Far
The journey of the Binance ecosystem
Mar 20 Apr 23
Ecosystem launch
Major upgrade
Oct 26
Jun 18Jun 13May 30 Aug 19 Sep 02 Sep 05

24. Indicative Industry Metrics
➢ Ownership: before boom < 0.1%, currently ~1% (60-80M), 10%
tipping point
➢ Spending: ~$2B merchant spend vs ~$10T US & China retail sales
➢ Trading: <5% owners daily => $35B daily trading volume
➢ Daily Liquidity:
○ Crypto: ~25% trade vol/mkt cap (reported)
○ USD: ~12% forex vol/M2 supply
○ NYSE/NASDAQ: ~2% trade vol/mkt cap

25. Security and Speed in
Blockchain and
Cryptocurrencies
Prof. Yehuda Lindell, CEO and co-founder
September 2019

26. 26
Motivation

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Unique Security Issues
Lose the key  lose the
asset
Just one private key
operation stands between
the fraudster and the asset
The blockchain is
decentralized and
transactions are non-
reversible
Key = Asset Key Usage = Steal No Do-Overs

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Cryptocurrency Protection Scenarios
• Custody solutions (e.g., banks/financial institutions)
• Small turnover – complex transactions acceptable
• But need to get funds quickly if needed
• Very large amount of funds
• Offered to high-end customers
• Exchanges
• High turnover – need to speed up transactions
• Can take days today
• Separation of vaults (large, medium, small)
• Higher protection on larger vaults
• Wallets
• For end users, small amounts of funds

29. 29
Solution Platform Requirements
• High security
• Protection against key theft and fraudulent key usage
• Backup and disaster recovery
• Fast transaction speed
• For both exchanges and custody
• Flexibility
• Fine tune security vs usability (ease of transfer)
• Broad support
• Different coins/systems (all coins mentioned earlier)
• Different signing algorithms
• Standards (e.g., BIP032/BIP044)

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Existing Solutions
• Cold wallets/disconnected hardware
• Not flexible
• Poor usability and long transaction execution time
• Questionable security in some cases
• Standard HSMs (hardware security modules)
• Not flexible
• Don’t protect against fraudulent key usage (if connected)
• Typically don’t support many of standards
• Multi-sig
• Not supported by all ledgers
• Limited definition, even when supported (and expensive)
• Doesn’t support necessary operations (like employee replacement)

31. 31
Recent Major HSM Breach (June 2019)
• Hackers uploaded malicious firmware remotely and extracted all keys
• Compromised HSMs cannot be patched and this cannot be detected
• Customers have to hope that their HSMs weren’t compromised

32. 32
Secure Multiparty Computation (MPC)
• A well researched subfield of cryptography
• Research began in the late 1980s
• Thousands of research papers
• Research was purely theoretical until recently
• MPC is now a very active applied area of research
• The idea – compute on private data without revealing anything
• Security guarantees are mathematically proven

33. 33
Who pays
for lunch?
Secure Multiparty Computation – Toy Example
The dining cryptographer’s
problem:
A group of cryptographers want
the person with the highest
salary to buy lunch, without
revealing anyone’s salary!
Alice’s salary:
$120K
Bob’s salary:
$105K
Eve’s salary:
$65K
Alice pays
for lunch!

34. 34
Threshold Signing
• What is threshold signing?
• A special case of MPC
• Share a key amongst a set of parties
• Signing can only take place when an authorized subset of parties agree
• E.g., define that 3 out of the 7 parties must approve (called a quorum)
• Security guarantees
• No single point of breach and failure
• All parties in the quorum agree on the message to be signed
• This is enforced cryptographically
• Every new signature requires a quorum to agree and participate
• Security holds even if a subset are corrupted by attackers, etc.

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Important Features
• Fast transaction time
• Software-based authorization (cryptographically enforced) via mobile or
browser
• Asynchronous authorization by human participants
• No need to wait for everyone to be simultaneously online
• Secure backup (zero-knowledge proof of validity)
• Ensure no loss of funds
• Party administration
• Add/remove parties without changing keys
• Employee satisfaction
• No need for physical presence in the office to approve transaction

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Flexible Quorum Structures and Policies
• Can define flexible quorums:
• 2 out of the 3 parties at the service provider, AND
• 1 out of the 2 parties at the customer
• Quorum can be defined based on multiple sets
and arbitrary thresholds
• Quorum policy can be tailored to security needs
and risk
• Complex quorums with many parties for custody or
large wallets
• Smaller quorum with fewer parties for smaller wallets
• Automatic bot-approval quorums for very small
wallets
Sign crypto transaction
Service ProviderCustomer/trustee

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Flexible Quorum Structures and Policies
• Can define risk-based policies:
• Asset type
• Transaction day and time
• Transaction size
• Whitelists
• Enforce policy at all nodes
• Flexible quorum depending on risk-
based policy

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Summary
• Threshold signing and MPC provides a comprehensive platform for
cryptocurrency protection
• Distributed cryptography – no single point of compromise
• Key material is never in the clear
• Protection against fraudulent key usage
• Suitable for entire spectrum: wallet, exchange, custodian
• Supports any device and platform
• Ledger agnostic
• Asynchronous approval of transactions and sophisticated quorum definitions

39. 39
Q&A
Want more information?
Download more resources from the "attachments" tab:
• Our slide deck
• Unbound Tech’s best practices guide for crypto asset
protection
• Unbound Tech’s “Grow Your Trading Volume” guide
Email contact@unboundtech.com to receive:
• Case studies about our Crypto Asset Security Platform
(CASP)
• A personalized demo for your organization

40. Thank You