ENS Offchain Resolver

An ENS Offchain Resolver represents a crucial part of Fluidkey's UX, facilitating the generation of privacy-preserving addresses while keeping a great UX and compatibility. Unlike traditional resolvers that require each transaction to be recorded on the blockchain, Fluidkey's solution operates offchain. This approach significantly reduces transaction fees and processing times, and it's the only way to maintain privacy. Other ENS systems like Coinbase's cb.id and Uniswap's uni.eth also use offchain resolvers, Fluidkey is however the only system that also provides enhanced privacy through an offchain resolver.

Detailed Privacy Implications

Inside Fluidkey, each user has a viewing and a spending key associated to his own account. By differentiating between viewing and spending keys, Fluidkey ensures that it can generate new addresses by accessing the viewing key, while not able to control these addresses, keeping the solution fully self-custodial.

In implementing the ENS Offchain Resolver, Fluidkey achieves a critical balance between functionality and privacy. Having access to generated addresses is crucial for operational purposes, such as indexing, which enables Fluidkey to effectively support user queries and interactions within the network, improving the UX by showing the total balance across addresses, or computing the most privacy preserving path to execute a transaction.

While the generation of Stealth Addresses is based on an open source kit, it's important to emphasize that this setup gives Fluidkey view access to the user's addresses, but doesn't enable Fluidkey to control any of the assets within these addresses.

Embracing Decentralization

Fluidkey's roadmap includes transitioning to a fully decentralized ENS Offchain Resolver. This ambitious goal is not straightforward and requires further research to get to a production-ready solution.