ATM-Based Private Key Storage and Retrieval System
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Solution Overview
Problem
Cryptocurrency users face challenges with the security and accessibility of private keys, as hot wallets are vulnerable to hacking while cold wallets are prone to loss or damage, leading to difficulties in secure and reliable storage and retrieval.
Innovation Solution
A system utilizing an automated teller machine (ATM) with a data storage unit and processor for secure storage and retrieval of private keys, involving authentication requests, credential validation, and secure transmission to user devices, providing a centralized and secure solution beyond traditional hot and cold wallets.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a hot wallet is used to store private keys online, then accessibility and convenience are improved, but security is worsened due to vulnerability to hacking
Solution Approach 1:
The system divides the private key storage and retrieval process into separate components: the private key is encrypted and stored on a physical card, while the decryption capability is separated into a distributed network of nodes. This segmentation ensures that even if one component is compromised, the private key remains protected.
Solution Approach 2:
The patent introduces an intermediary system consisting of encrypted storage on physical cards and a distributed network of decryption nodes. This intermediary layer between the user and the private key prevents direct online access, thereby maintaining security while enabling convenient retrieval through the intermediary infrastructure.
2Reliability
If a cold wallet is used to store private keys offline, then security is improved, but accessibility and reliability are worsened due to risk of loss or damage
Solution Approach 1:
The system creates multiple copies of the encrypted private key stored on different physical cards and distributes them across a network of nodes. This eliminates the risk of single-point failure while maintaining offline security. The user can retrieve the private key by combining information from multiple card copies, ensuring both security and accessibility.
Solution Approach 2:
The patent implements redundancy by storing encrypted copies of the private key on multiple physical cards before any loss or damage occurs. This beforehand cushioning ensures that even if some cards are lost or damaged, the private key can still be recovered by combining the remaining copies, thereby protecting against the risks of cold storage.
3Reliability
If physical storage methods are used for cold wallets, then offline security is improved, but the risk of loss, theft, or damage increases
Solution Approach 1:
The private key is segmented into multiple encrypted portions stored on separate physical cards. This segmentation reduces the harmful impact of losing or damaging any single card, as the complete private key cannot be reconstructed without multiple segments. The physical storage risk is distributed rather than concentrated.
Solution Approach 2:
Multiple encrypted copies of the private key are created and stored on different physical cards. This redundancy ensures that the private key can be recovered even if some physical copies are lost, stolen, or damaged, thereby mitigating the harmful factors associated with physical storage while maintaining offline security.
Data Source
AI summary
Systems and methods for the localized storage and retrieval of private keys are provided. The system includes a card, a user device, and an ATM. The method comprises validating the user's identity, encrypting the private key, and depositing the key into the ATM. Another method comprises withdrawing the private key in a paper or virtual form.