Polkadot introduces a robust feature known as Proxy Accounts. This functionality is not only instrumental in enhancing the security of user accounts but also in streamlining complex account management processes, particularly for corporate and high-stakes use cases.
What are Polkadot Proxy Accounts?
Proxy Accounts in the Polkadot ecosystem offer users the ability to delegate specific roles and tasks from a primary account to smaller, secondary accounts. These proxies can perform actions on behalf of the main account, reducing the need for the primary account to engage in frequent transactions, thereby minimizing the exposure of its private keys to potential threats.
Why Use Proxy Accounts?
Proxy Accounts serve multiple purposes, primarily revolving around security and efficiency:
- Increased Security: By delegating tasks to proxy accounts, the primary or stash account can remain in cold storage, reducing its exposure. This setup makes it more challenging for potential attackers to compromise the primary account, as the proxies handle day-to-day operations.
- Efficient Delegation: Proxies allow for the separation of roles and responsibilities, enabling more granular control over account actions. For instance, different proxies can be set up for staking, governance, or other specific tasks, ensuring that each proxy only performs its designated functions.
- Corporate Account Management: In a corporate setting, where multiple users may need to access and manage funds or participate in network governance, proxies provide a streamlined and secure method for delegating these responsibilities without compromising the main account’s security.
Types of Polkadot Proxy Accounts
Polkadot offers various types of proxy accounts, each tailored to specific use cases:
- Any: This type of proxy allows for any transaction, including balance transfers. However, due to the increased security risks, it is generally recommended to avoid using this type unless absolutely necessary.
- Non-transfer: These proxies can perform any transaction except for balance transfers, providing a balance between functionality and security.
- Governance: Designed for governance-related transactions, these proxies allow participation in the network’s decision-making processes without exposing the primary account.
- Nomination Pool: Specifically for transactions related to Nomination Pools, these proxies help manage staking activities within these pools.
- Staking: These proxies handle all staking-related transactions, such as setting session keys or nominating validators, allowing the primary account to remain secure in cold storage.
- Identity Judgement: Used by registrars to make judgments on an account’s identity, these proxies are crucial for maintaining the integrity of identity verification on the Polkadot network.
- Cancel: These proxies are tasked with rejecting and removing any time-delay proxy announcements, providing an additional layer of control and security.
- Auction: Designed for participating in parachain auctions and crowdloans, these proxies can manage auction-related transactions while keeping the primary account secure.
Proxy Deposits and Security
To create a proxy account, users must reserve a deposit in the native DOT token. This requirement exists to prevent Denial-of-Service (DoS) attacks, as creating and maintaining proxies consume storage space on the blockchain. The deposit amount is calculated based on the number of proxies associated with the primary account, ensuring that the network remains secure and resistant to potential abuses.
Polkadot Time-Delayed Proxies
A unique feature of Polkadot’s proxy system is the ability to add a delay time to proxies. This delay, measured in blocks, adds an additional layer of security by giving the account owner time to cancel any potentially malicious or unintended transactions before they are executed. This feature is particularly valuable in high-security environments, where immediate execution of transactions might expose the account to unnecessary risks.
Polkadot Pure Proxy Accounts
Polkadot also introduces Pure Proxy Accounts, a specialized type of proxy account that enhances security and simplifies account management. Unlike traditional proxies, pure proxies are keyless and non-deterministic, meaning they do not have a private key but can still act as proxies within the network.
Advantages of Pure Proxy Accounts:
- Enhanced Security: Pure proxies cannot be stolen because they lack private keys. They are controlled by other proxies (e.g., an “Any” proxy), and once the relationship between the pure proxy and its controller is severed, the pure proxy becomes inaccessible.
- Simplified Management: In corporate settings, pure proxies allow for the seamless management of multi-signature accounts, where changing signatories can be a common occurrence. Pure proxies enable the retention of the same multi-signature account even as signatories change, avoiding the need to create new accounts frequently.
- Multi-signature Efficiency: By integrating pure proxies with multi-signature accounts, organizations can maintain secure and flexible account structures without compromising on efficiency.
Conclusion
Polkadot’s Proxy Accounts provide a powerful tool for enhancing security and efficiency in the management of digital assets. Whether for individual users seeking to protect their primary accounts or for organizations managing complex account structures, proxies offer a customizable solution to meet various needs. As the Polkadot ecosystem continues to evolve, the strategic use of Proxy Accounts will undoubtedly play a crucial role in ensuring the security and scalability of decentralized operations.
- Related content: Bounties & Proxies Guide by Adam Steeber.
- Polkadot Wiki page about Proxies.
