Contextual E-Wallet Authentication via Distributed Shares
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Solution Overview
Problem
IoT devices face challenges in securing electronic wallets from theft and loss due to constraints on memory and processing power, leading to security issues with crypto-currencies like Bitcoin, particularly in forming reliable, secure, and identifiable networks for transactions.
Innovation Solution
Implementing a crypto multi-lock process with multiple encryption techniques and distributed wallet systems using enhanced privacy ID (EPID) for secure transactions, and fractional transactions across multiple e-wallet shares, along with compensating transactions and blockchain-based insurance for risk mitigation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If crypto-currency is used in IoT devices, then transaction capability is enabled, but security vulnerabilities increase due to memory and processing constraints
Solution Approach 1:
The wallet application is divided into multiple shares distributed across different IoT devices. Each device holds a portion of the cryptographic keys, and transactions require collaboration among multiple devices. This segmentation prevents single-point compromise and enhances security while maintaining transaction capability across resource-constrained devices.
Solution Approach 2:
A trusted execution environment (TEE) or secure element acts as an intermediary layer between the wallet application and the external environment. This intermediary protects sensitive cryptographic operations and key storage, enabling secure transactions without requiring the main processor to handle private keys directly, thus overcoming processing power limitations.
2Reliability
If multiple encryption techniques are implemented, then security is enhanced, but device complexity increases
Solution Approach 1:
Multiple encryption techniques (symmetric encryption, asymmetric encryption, and hash functions) are merged into a unified wallet architecture where each layer serves a specific purpose. The combination is managed through a standardized interface that abstracts the complexity, allowing resource-constrained devices to benefit from layered security without proportionally increasing operational complexity.
Solution Approach 2:
Cryptographic key pairs are generated in advance and distributed to multiple devices before transactions occur. Encryption schemes are pre-configured and validated during device provisioning. This preliminary action reduces runtime computational burden and simplifies transaction execution while maintaining strong security through pre-established cryptographic relationships.
3Reliability
If distributed wallet architecture is used, then security and reliability improve, but system complexity increases
Solution Approach 1:
The distributed wallet system implements a universal protocol that works across different IoT device types and platforms. Standardized message formats, authentication mechanisms, and transaction protocols enable heterogeneous devices to participate in the distributed wallet network without requiring device-specific customization, thus managing system complexity while achieving enhanced security through distribution.
4Reliability
If blockchain-based insurance is implemented, then risk management capability is provided, but processing requirements increase
Solution Approach 1:
Complex blockchain-based insurance smart contract logic and risk assessment algorithms are extracted from the IoT devices and executed on external blockchain nodes or cloud-based oracle systems. Devices only need to interact with simplified interfaces to submit transaction data and receive insurance coverage decisions, thereby obtaining risk management capabilities without burdening constrained device processors with heavy computational loads.
Data Source
AI summary
Methods and systems are provided for a contextual authentication of an electronic wallet (e-wallet). An example apparatus includes a wallet application configured to confirm a context for use of an e-wallet, wherein the context is defined by a multifactor authentication (MFA) policy. A multifactor authentication application is configured to access a context sensor to provide input to the wallet application for the MFA policy.