Blockchain Administration via Segmented Cold and Hot Private Keys
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Solution Overview
Problem
Existing blockchain systems face limitations in managing blockchain administration operations, particularly for accounts with private keys stored offline, as these accounts cannot participate in network operations without being made 'hot' and accessible online.
Innovation Solution
A system and method that enable cryptocurrency owners to delegate blockchain management operations, such as block validation and voting, to blockchain administration systems, even when private keys are cold-stored. This is achieved through pre-signed transactions, reusable cold storage keys, and multi-party computation techniques, allowing offline storage assets to participate in network operations without being made hot.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If private keys are cold-stored offline for security, then security is improved, but the ability to participate in blockchain management operations is lost
Solution Approach 1:
The system segments the functionality into two separate key pairs: a first private key for asset control (cold-stored for security) and a second private key for blockchain management operations (hot-stored for accessibility). This segmentation allows each key to serve its specific purpose without compromising security or functionality.
Solution Approach 2:
The system introduces an intermediary mechanism where the first private key (cold-stored) signs a delegation operation that grants the second private key (hot-stored) the authority to perform blockchain management operations. This intermediary delegation process enables offline assets to participate in network operations without exposing the cold-stored key.
2Ease of operation
If private keys are made hot for network participation, then the ability to sign operations is improved, but security risk increases
Solution Approach 1:
The system divides the key management responsibilities by creating two distinct private keys: one cold-stored key for secure asset control and one hot-stored key for operational flexibility. This segmentation eliminates the need to compromise the cold-stored key for network participation.
Solution Approach 2:
The hot-stored second private key acts as an intermediary that can sign network operations without having direct access to the cold-stored first private key. The delegation operation signed by the cold key empowers the hot key to perform operations, thereby reducing security risk while maintaining operational ease.
3Device complexity
If a single private key is used for both asset control and management operations, then device complexity is reduced, but the risk of harmful factors increases
Solution Approach 1:
The system segments the single private key into two separate private keys with distinct purposes: the first private key for asset control and the second private key for management operations. Although this increases the number of keys, it reduces overall system complexity by clearly separating security-critical functions from operational functions.
Solution Approach 2:
Each private key is assigned specific local quality characteristics: the first private key is cold-stored with high security properties, while the second private key is hot-stored with high accessibility properties. This local quality differentiation allows each key to be optimized for its specific function, reducing the need for complex security protocols.
Data Source
AI summary
Systems and methods for participation in blockchain administration.