# Cryptography and Blockchain Development - Processes Backlog

This document contains identified processes, methodologies, work patterns, flows, and practices for the Cryptography and Blockchain Development specialization. Each process can be implemented as a JavaScript file according to the Babysitter SDK patterns.

## Implementation Status

- [ ] = Not started
- [x] = Implemented

---

## Smart Contract Development & Security

### [ ] Smart Contract Development Lifecycle
**Description**: End-to-end process for developing secure smart contracts from requirements through deployment, including design, implementation, testing, auditing, and mainnet deployment with proper verification.

**References**:
- https://docs.soliditylang.org/
- https://consensys.github.io/smart-contract-best-practices/
- https://book.getfoundry.sh/

**Key Activities**:
- Requirements analysis and specification
- Contract architecture design
- Implementation with security patterns
- Comprehensive unit and integration testing
- Gas optimization
- Testnet deployment and verification
- Security audit coordination
- Mainnet deployment with monitoring

---

### [ ] Smart Contract Security Audit Process
**Description**: Systematic security review of smart contracts including manual code review, automated analysis, formal verification, and economic attack vector assessment to identify vulnerabilities before deployment.

**References**:
- https://github.com/crytic/slither
- https://github.com/Consensys/mythril
- https://swcregistry.io/

**Key Activities**:
- Initial codebase review and scoping
- Automated static analysis (Slither, Mythril)
- Manual line-by-line code review
- Access control and authorization verification
- Reentrancy and state consistency checks
- Economic attack vector analysis
- Finding severity classification
- Remediation verification

---

### [ ] Gas Optimization Process
**Description**: Systematic optimization of smart contract gas consumption through code refactoring, storage optimization, and algorithmic improvements while maintaining security properties.

**References**:
- https://www.evm.codes/
- https://book.getfoundry.sh/forge/gas-reports

**Key Activities**:
- Gas profiling and baseline measurement
- Storage variable packing optimization
- Calldata vs memory optimization
- Loop and batch operation optimization
- Custom error implementation
- Unchecked block usage for safe arithmetic
- Comparison with alternative implementations
- Regression testing for security

---

### [ ] Smart Contract Upgrade Process
**Description**: Safe upgrade process for proxy-based upgradeable contracts including storage layout verification, compatibility checks, governance approval, and rollback planning.

**References**:
- https://docs.openzeppelin.com/upgrades-plugins/
- https://eips.ethereum.org/EIPS/eip-1967

**Key Activities**:
- Storage layout compatibility verification
- New implementation security audit
- Testnet upgrade simulation
- Governance proposal creation
- Multi-sig execution coordination
- Post-upgrade verification
- Monitoring for anomalies
- Rollback procedure documentation

---

### [ ] Formal Verification of Smart Contracts
**Description**: Mathematical verification of smart contract properties using formal methods to prove correctness of critical functions and invariants.

**References**:
- https://docs.certora.com/
- https://github.com/runtimeverification/k

**Key Activities**:
- Identify critical properties to verify
- Write formal specifications
- Model contract behavior
- Run verification tools (Certora, K Framework)
- Analyze counterexamples
- Refine specifications and code
- Document proven properties
- Maintain specifications with code changes

---

## Token Development & Standards

### [ ] ERC-20 Token Implementation
**Description**: Development process for creating secure, standard-compliant ERC-20 fungible tokens with proper access controls, events, and optional extensions (permit, snapshots, pausable).

**References**:
- https://eips.ethereum.org/EIPS/eip-20
- https://docs.openzeppelin.com/contracts/4.x/erc20

**Key Activities**:
- Token specification definition
- Choose base implementation (OpenZeppelin)
- Implement required functions
- Add optional extensions (ERC-2612 permit)
- Implement access controls for minting/burning
- Comprehensive testing
- Security audit
- Deployment and verification

---

### [ ] ERC-721 NFT Collection Development
**Description**: End-to-end process for developing NFT collections including metadata design, minting mechanisms, royalty implementation, and marketplace integration.

**References**:
- https://eips.ethereum.org/EIPS/eip-721
- https://docs.opensea.io/docs/metadata-standards
- https://eips.ethereum.org/EIPS/eip-2981

**Key Activities**:
- Collection design and metadata schema
- Implement ERC-721 with extensions
- Design minting mechanism (lazy, allowlist, public)
- Implement ERC-2981 royalties
- Set up IPFS/Arweave for metadata
- Build reveal mechanism if needed
- Marketplace integration testing
- Security audit and deployment

---

### [ ] ERC-1155 Multi-Token Implementation
**Description**: Development of multi-token contracts supporting both fungible and non-fungible tokens with efficient batch operations.

**References**:
- https://eips.ethereum.org/EIPS/eip-1155
- https://docs.openzeppelin.com/contracts/4.x/erc1155

**Key Activities**:
- Token type design (fungible vs NFT)
- Implement batch transfer functions
- Design URI scheme for metadata
- Implement supply management
- Access control for minting
- Marketplace compatibility testing
- Gas optimization for batches
- Security review and deployment

---

### [ ] ERC-4626 Tokenized Vault Development
**Description**: Implementation of yield-bearing vault tokens following the ERC-4626 standard for DeFi composability.

**References**:
- https://eips.ethereum.org/EIPS/eip-4626
- https://docs.openzeppelin.com/contracts/4.x/api/token/erc20#ERC4626

**Key Activities**:
- Define underlying asset and yield strategy
- Implement deposit/withdraw functions
- Handle share calculation correctly
- Implement preview functions accurately
- Handle edge cases (first deposit, rounding)
- Integration testing with DeFi protocols
- Security audit for vault logic
- Performance and gas testing

---

## DeFi Protocol Development

### [ ] AMM Pool Development
**Description**: Implementation of automated market maker liquidity pools with constant product or custom curve formulas, fee mechanisms, and liquidity provider token management.

**References**:
- https://uniswap.org/whitepaper-v3.pdf
- https://curve.fi/whitepaper

**Key Activities**:
- Design bonding curve formula
- Implement swap function with slippage protection
- Build liquidity provision/removal
- Implement fee collection and distribution
- LP token minting and burning
- TWAP oracle implementation
- Flash swap functionality
- Multi-hop routing support

---

### [ ] Lending Protocol Implementation
**Description**: Development of over-collateralized lending and borrowing protocols with interest rate models, collateral management, and liquidation mechanisms.

**References**:
- https://compound.finance/documents/Compound.Whitepaper.pdf
- https://docs.aave.com/

**Key Activities**:
- Interest rate model design
- Collateral factor configuration
- Supply and borrow functionality
- Interest accrual mechanism
- Health factor calculation
- Liquidation mechanism
- Oracle integration for prices
- Flash loan functionality

---

### [ ] Staking Contract Development
**Description**: Implementation of token staking mechanisms with reward distribution, lockup periods, and delegation support.

**References**:
- https://docs.synthetix.io/contracts/source/contracts/stakingrewards/

**Key Activities**:
- Staking mechanism design
- Reward calculation (per-block or per-second)
- Reward distribution implementation
- Lockup and vesting logic
- Delegation functionality
- Emergency withdrawal mechanism
- Reward rate adjustment
- Historical rewards tracking

---

### [ ] Yield Aggregator Development
**Description**: Development of automated yield optimization protocols that allocate capital across DeFi strategies to maximize returns.

**References**:
- https://docs.yearn.finance/

**Key Activities**:
- Strategy interface design
- Vault architecture implementation
- Strategy allocation logic
- Harvest and compound functions
- Performance fee calculation
- Emergency withdrawal mechanisms
- Strategy migration process
- Risk parameter management

---

### [ ] Governance System Implementation
**Description**: On-chain governance implementation with proposal creation, voting mechanisms, timelock execution, and delegation.

**References**:
- https://docs.openzeppelin.com/contracts/4.x/governance
- https://compound.finance/docs/governance

**Key Activities**:
- Voting token design (ERC20Votes)
- Proposal lifecycle implementation
- Quorum and threshold configuration
- Voting power delegation
- Timelock controller setup
- Proposal execution mechanism
- Governance attack mitigation
- Off-chain voting integration (Snapshot)

---

## Cryptographic Implementation

### [ ] Cryptographic Protocol Implementation
**Description**: Secure implementation of cryptographic protocols including signature schemes, encryption, and key derivation following best practices and standards.

**References**:
- https://csrc.nist.gov/projects/cryptographic-standards-and-guidelines
- https://datatracker.ietf.org/doc/html/rfc6979

**Key Activities**:
- Protocol specification review
- Select appropriate libraries
- Implement with constant-time operations
- Handle edge cases and error conditions
- Implement key generation securely
- Add serialization/deserialization
- Comprehensive test vectors
- Security review for side channels

---

### [ ] HD Wallet Implementation (BIP-32/39/44)
**Description**: Implementation of hierarchical deterministic wallets with mnemonic phrases and standard derivation paths for multi-coin support.

**References**:
- https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki
- https://github.com/bitcoin/bips/blob/master/bip-0039.mediawiki
- https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki

**Key Activities**:
- Mnemonic generation from entropy
- Seed derivation from mnemonic
- Master key generation
- Child key derivation (hardened/normal)
- Standard path implementation
- Multi-chain support
- Secure memory handling
- Recovery and backup procedures

---

### [ ] Multi-Signature Wallet Development
**Description**: Development of multi-signature wallets requiring M-of-N approvals for transaction execution with proper signature verification.

**References**:
- https://github.com/safe-global/safe-contracts

**Key Activities**:
- Signature collection mechanism
- Threshold configuration
- Owner management
- Transaction queue implementation
- Signature verification (ECDSA/EIP-712)
- Nonce management
- Delegate call support
- Module system for extensions

---

### [ ] Threshold Signature Scheme Implementation
**Description**: Implementation of threshold cryptography for distributed key generation and signing without reconstructing full private keys.

**References**:
- https://eprint.iacr.org/2020/540.pdf

**Key Activities**:
- Distributed key generation protocol
- Share distribution mechanism
- Threshold signing protocol
- Share refresh procedures
- Proactive security measures
- Recovery mechanisms
- Performance optimization
- Integration with existing systems

---

## Zero-Knowledge Proof Development

### [ ] ZK Circuit Development Process
**Description**: End-to-end development of zero-knowledge proof circuits from specification through optimization and integration with on-chain verifiers.

**References**:
- https://docs.circom.io/
- https://noir-lang.org/docs
- https://www.poseidon-hash.info/

**Key Activities**:
- Circuit specification and design
- Select proof system (Groth16, PLONK, STARK)
- Implement circuit logic
- Optimize constraint count
- Generate proving and verification keys
- Implement proof generation
- Deploy on-chain verifier
- Integration testing

---

### [ ] ZK-SNARK Application Development
**Description**: Development of privacy-preserving applications using ZK-SNARKs for selective disclosure, private transactions, or verifiable computation.

**References**:
- https://eprint.iacr.org/2016/260.pdf
- https://zips.z.cash/protocol/protocol.pdf

**Key Activities**:
- Define public/private inputs
- Design commitment scheme
- Implement Merkle tree for membership
- Build circuit for computation
- Trusted setup ceremony (if required)
- Client-side proof generation
- On-chain verification
- Performance optimization

---

### [ ] ZK Rollup Development
**Description**: Development of ZK rollup infrastructure including sequencer, prover, data availability, and L1 smart contracts.

**References**:
- https://docs.zksync.io/
- https://docs.starknet.io/

**Key Activities**:
- State transition circuit design
- Batch processing logic
- Sequencer implementation
- Prover service development
- L1 contract for verification
- Data availability solution
- Forced inclusion mechanism
- Escape hatch implementation

---

### [ ] Privacy Token Implementation
**Description**: Implementation of privacy-preserving tokens using ZK proofs to hide transaction amounts and/or participants.

**References**:
- https://docs.tornado.ws/general/readme (educational)
- https://docs.aztec.network/

**Key Activities**:
- Design note structure
- Implement commitment scheme
- Build nullifier mechanism
- Create deposit circuit
- Create withdrawal circuit
- Merkle tree management
- Relayer integration
- Compliance considerations

---

## Blockchain Infrastructure

### [ ] Blockchain Node Setup and Management
**Description**: Process for deploying, configuring, and maintaining blockchain full nodes or validator nodes with proper security and monitoring.

**References**:
- https://geth.ethereum.org/docs/
- https://docs.solana.com/running-validator

**Key Activities**:
- Hardware/cloud infrastructure setup
- Node software installation
- Network configuration
- Peer discovery setup
- State sync or snapshot restore
- Monitoring and alerting setup
- Security hardening
- Backup and disaster recovery

---

### [ ] Validator Node Operation
**Description**: Operating blockchain validator nodes including key management, staking operations, and uptime maintenance.

**References**:
- https://ethereum.org/en/staking/
- https://docs.cosmos.network/main/run-node/run-node

**Key Activities**:
- Validator key generation and security
- Staking deposit/delegation
- Monitor attestation performance
- Slashing risk mitigation
- Client diversity management
- Upgrade coordination
- MEV configuration (MEV-Boost)
- Emergency procedures

---

### [ ] Blockchain Indexer Development
**Description**: Building blockchain indexing solutions for efficient querying of on-chain data including events, state changes, and transactions.

**References**:
- https://thegraph.com/docs/
- https://docs.ponder.sh/

**Key Activities**:
- Define data schema
- Implement event handlers
- Build entity relationships
- Handle chain reorganizations
- Optimize query performance
- Implement caching layer
- Deploy indexer infrastructure
- Monitor sync status

---

### [ ] Cross-Chain Bridge Implementation
**Description**: Development of cross-chain bridges for asset transfers and message passing between different blockchain networks.

**References**:
- https://docs.connext.network/
- https://layerzero.gitbook.io/docs/

**Key Activities**:
- Bridge architecture design
- Lock/mint or liquidity model
- Validator/relayer network
- Message verification mechanism
- Emergency pause functionality
- Rate limiting and caps
- Security audit
- Monitoring and incident response

---

## Testing and Quality Assurance

### [ ] Smart Contract Fuzzing Process
**Description**: Property-based testing and fuzzing of smart contracts to discover edge cases and vulnerabilities through automated input generation.

**References**:
- https://github.com/crytic/echidna
- https://book.getfoundry.sh/forge/fuzz-testing

**Key Activities**:
- Define invariants and properties
- Configure fuzzing parameters
- Write property tests
- Run extended fuzzing campaigns
- Analyze coverage reports
- Investigate failed assertions
- Fix discovered issues
- Maintain property test suite

---

### [ ] Invariant Testing Process
**Description**: Stateful testing of smart contracts to verify protocol invariants hold across sequences of operations.

**References**:
- https://book.getfoundry.sh/forge/invariant-testing

**Key Activities**:
- Identify protocol invariants
- Define actor contracts
- Implement state handlers
- Configure call sequences
- Run invariant test campaigns
- Analyze failure sequences
- Minimize failing cases
- Document and fix issues

---

### [ ] Economic Simulation and Modeling
**Description**: Simulation of protocol economics and mechanism design to validate tokenomics and identify potential attack vectors.

**References**:
- https://cadcad.org/
- https://gauntlet.network/

**Key Activities**:
- Model protocol mechanics
- Define agent behaviors
- Simulate market conditions
- Stress test edge cases
- Analyze economic attacks
- Validate incentive alignment
- Parameter sensitivity analysis
- Document findings and recommendations

---

## Web3 Frontend Development

### [ ] dApp Frontend Development Process
**Description**: End-to-end development of decentralized application frontends with wallet integration, transaction management, and real-time blockchain data.

**References**:
- https://wagmi.sh/
- https://viem.sh/
- https://rainbowkit.com/docs

**Key Activities**:
- Wallet connection implementation
- Contract interaction hooks
- Transaction state management
- Error handling and recovery
- Gas estimation and management
- Real-time data subscriptions
- Multi-chain support
- Mobile responsiveness

---

### [ ] Subgraph Development Process
**Description**: Development of The Graph subgraphs for efficient on-chain data indexing and querying.

**References**:
- https://thegraph.com/docs/

**Key Activities**:
- Define schema entities
- Write event handlers
- Implement data transformations
- Handle derived fields
- Test locally with Graph Node
- Deploy to hosted/decentralized service
- Monitor indexing performance
- Handle schema migrations

---

## Security Operations

### [ ] Bug Bounty Program Management
**Description**: Establishing and managing bug bounty programs for smart contracts and blockchain protocols to incentivize responsible disclosure.

**References**:
- https://immunefi.com/
- https://www.hackerone.com/

**Key Activities**:
- Define scope and exclusions
- Set severity and reward tiers
- Create submission guidelines
- Triage incoming reports
- Validate and classify findings
- Coordinate fixes
- Process rewards
- Publish security advisories

---

### [ ] Incident Response for Smart Contract Exploits
**Description**: Structured response process for smart contract security incidents including detection, containment, and recovery.

**References**:
- https://csrc.nist.gov/publications/detail/sp/800-61/rev-2/final

**Key Activities**:
- Detect exploit through monitoring
- Pause affected contracts (if possible)
- Analyze attack vectors
- Assess fund loss
- Implement fix or mitigation
- White hat rescue operations
- Post-mortem analysis
- Communication and disclosure

---

## Process Categories Summary

1. **Smart Contract Development & Security** (5 processes)
   - Development lifecycle, security audit, gas optimization, upgrades, formal verification

2. **Token Development & Standards** (4 processes)
   - ERC-20, ERC-721, ERC-1155, ERC-4626 implementations

3. **DeFi Protocol Development** (5 processes)
   - AMM pools, lending, staking, yield aggregators, governance

4. **Cryptographic Implementation** (4 processes)
   - Protocol implementation, HD wallets, multi-sig, threshold signatures

5. **Zero-Knowledge Proof Development** (4 processes)
   - Circuit development, ZK-SNARK applications, ZK rollups, privacy tokens

6. **Blockchain Infrastructure** (4 processes)
   - Node setup, validator operation, indexer development, cross-chain bridges

7. **Testing and Quality Assurance** (3 processes)
   - Fuzzing, invariant testing, economic simulation

8. **Web3 Frontend Development** (2 processes)
   - dApp frontend, subgraph development

9. **Security Operations** (2 processes)
   - Bug bounty programs, incident response

---

## Implementation Priority

### High Priority (Immediate Value)
1. Smart Contract Development Lifecycle
2. Smart Contract Security Audit Process
3. ERC-20 Token Implementation
4. ZK Circuit Development Process
5. dApp Frontend Development Process

### Medium Priority (Strategic Value)
6. AMM Pool Development
7. Formal Verification of Smart Contracts
8. Lending Protocol Implementation
9. Smart Contract Fuzzing Process
10. Blockchain Node Setup and Management

### Lower Priority (Specialized Value)
11. ERC-721 NFT Collection Development
12. ERC-4626 Tokenized Vault Development
13. HD Wallet Implementation
14. Multi-Signature Wallet Development
15. ZK-SNARK Application Development
16. Staking Contract Development
17. Governance System Implementation
18. Subgraph Development Process
19. Invariant Testing Process
20. Cross-Chain Bridge Implementation
21. ZK Rollup Development
22. Privacy Token Implementation
23. Validator Node Operation
24. Cryptographic Protocol Implementation
25. Threshold Signature Scheme Implementation
26. Economic Simulation and Modeling
27. Gas Optimization Process
28. Smart Contract Upgrade Process
29. Bug Bounty Program Management
30. Incident Response for Smart Contract Exploits

---

## Next Steps

1. Review and prioritize processes based on organizational needs
2. For each process, create a JavaScript implementation following Babysitter SDK patterns
3. Define clear inputs, outputs, and breakpoints
4. Include task definitions and parallel execution where appropriate
5. Add examples and documentation
6. Test each process thoroughly
7. Integrate with existing tooling and workflows
