Reevaluating Neuron Control Restrictions

This is an interesting idea, which I had not considered before.
As you pointed out, for security reasons one would definitely need to encrypt the permanent keys via vetKeys (or a similar mechanism) so that a single replica does not have access to them. I will discuss further with the crypto experts to get their feedback.

For the time being, I have one architecture feedback. If we were to implement such a key, (encrypted by vetKeys or a similar scheme), then it seems that the whole security of the NNS would be dependent on the applied encryption scheme.

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