3 min read

Introducing Shutter Hongbao: A Twist on a Timeless Tradition

Introducing Shutter Hongbao: A Twist on a Timeless Tradition

The Lunar New Year is a time for celebration, family, and the exchange of good wishes—often in the form of hongbao, traditional red envelopes containing money.

Shutter Hongbao is a playful experiment that blends this tradition with modern cryptographic technology. While still in its early stages and not yet fully secure, it offers a unique way to send digital, time-locked hongbao to anyone, even if they don’t already have a crypto wallet. Use it to explore how crypto gifting might work in the future, but approach it with caution and as a proof of concept.

Create one yourself here: https://hongbao.shutter.network/

🎁 Shutter Hongbao - 红包赠送应用
红包赠送应用
  • Shutter Hongbao lets you send digital, time-locked cryptocurrency hongbaos.
  • Recipients don’t need a pre-existing crypto wallet; they can use an in-browser passkey wallet.
  • It uses Shutter threshold encryption to ensure funds remain locked until a specified time.
  • Fully non-custodial: your funds and keys always remain under your control.
  • It is ideal for onboarding new users into crypto, allowing them to send funds or create their own hongbaos.
  • Early-stage software has many risks (e.g., premature or failed decryption).

What is Shutter Hongbao?

Shutter Hongbao is a decentralized application (DApp) built on the Gnosis Chain that allows you to send cryptocurrency gifts with time-lock encryption. It’s designed for simplicity and accessibility, combining cutting-edge technology with the age-old custom of gifting hongbao.

Why Now?

Lunar New Year is the perfect opportunity to share prosperity and good fortune. Shutter Hongbao bridges tradition and technology, letting you send red envelopes securely and innovatively.

How It Works

Shutter Hongbao uses Shutter threshold encryption, which ensures private keys remain locked until a specified time. Unlike traditional methods, your Hongbao funds are never stored on a central server, making this a non-custodial solution. Here’s how it works:

  1. Locally generated and encrypted: Private keys are generated in your browser and encrypted using Shutter’s services.
  2. Time-locked security: Funds can only be accessed after the specified unlock time.
  3. No wallet? No problem: The recipient doesn’t need a pre-existing wallet. Shutter Hongbao includes a passkey wallet that is fully in-browser and non-custodial.

What Makes It Unique?

  • Non-custodial by design: Your funds and keys remain under your control. The Shutter Keypers involved in this early version are centralized, but they never have access to your funds.
  • Passkey wallet: A secure, ephemeral wallet is created in the recipient’s browser for seamless fund management.
  • Inspired by Linkdrop: Similar solutions, such as Linkdrop, have shown the potential of such innovations.

Onboarding Made Simple

Shutter Hongbao offers a seamless way to introduce someone to the world of cryptocurrencies, especially on Gnosis Chain, a blockchain designed for affordability and scalability. Transactions use xDai, a US dollar-pegged stablecoin that also doubles as gas for network fees, making the process straightforward and cost-effective for both senders and recipients.

This could be one of the best ways to onboard new people into crypto. Recipients don’t need prior knowledge or a wallet to get started. With the in-browser, non-custodial passkey wallet, they can immediately:

  • Claim the gifted xDai and use it to explore the Gnosis Chain ecosystem.
  • Send funds to others or transfer them to a more secure wallet.
  • Create and send their own Shutter Hongbaos, spreading the experience further.

By combining ease of use, low transaction costs, and a familiar gifting tradition, Shutter Hongbao removes many of the barriers to crypto adoption, making it an accessible and enjoyable entry point for newcomers.

Risks and Caveats

This is very early-stage software. While functional, the current set of Shutter Keypers for Hongbaos are centralized, which introduces risks. For example, in theory, they could decrypt funds prematurely or fail to decrypt them entirely. However, they never have access to your private keys or to claiming the funds.

Step-by-Step Guide

To Send a Hongbao

  1. Create: Generate a time-locked private key using Shutter encryption.
  2. Fund: Transfer xDai to the generated account.
  3. Secure: Optionally add a password for an extra layer of protection.
  4. Share: Send the recipient a redemption link.

To Receive a Hongbao

  1. Open the link: Verify the Hongbao details.
  2. Unlock: If password-protected, enter the password to decrypt the key.
  3. Claim: Using the in-browser wallet or MetaMask to sweep the funds after the unlock time.

Join the Tradition, Redefined

Shutter Hongbao blends tradition with technology, making the Lunar New Year a little more innovative and inclusive. Whether you’re gifting loved ones or introducing someone to the world of crypto, Shutter Hongbao ensures your gesture is secure, modern, and meaningful.

Happy Lunar New Year from the Shutter team!

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