Cryptocurrency Address Security via Multi-Key Segmentation
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Solution Overview
Problem
Current digital currency address security methods, such as those using public key cryptography and Elliptic Curve Digital Signature Algorithm (ECDSA), face challenges in key management and security, particularly with client-side wallets requiring users to handle malware protection, backups, and physical security, while web wallets rely on trusted third parties that are vulnerable to hacking and regulatory issues.
Innovation Solution
A system that generates a digital currency address using public keys from multiple public-private key pairs, allowing for secure key management through encryption, secure tokenization, and key sharing between devices, enabling secure transactions and offline account creation, with features like transaction authorization configurations and key rotation to enhance security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If users store secret keys on tangible media for ECDSA security, then cryptographic security is maintained, but physical security and key management become the user's responsibility
Solution Approach 1:
The system segments key management into multiple components: the user's private key, the service provider's key pair, and derived keys. The service provider holds only public keys and encrypted data, while the user retains control of their private key. This segmentation distributes security responsibilities without compromising cryptographic security.
Solution Approach 2:
The service provider acts as an intermediary that facilitates key management operations without having access to the user's private key. The intermediary enables secure key generation, storage, and recovery operations while maintaining the user's cryptographic security through architectural design rather than physical security measures.
2Reliability
If users employ strong passwords for bitcoin cash, then security is improved, but the risk of forgetting or losing passwords increases
Solution Approach 1:
The system performs preliminary actions by pre-generating backup keys and encrypting recovery data before the user needs them. Backup keys are created and stored securely with the service provider during account setup, enabling password recovery without requiring the user to remember backup passwords or manually create recovery phrases.
Solution Approach 2:
The system enables self-service password recovery through automated key derivation and encryption. When a user loses their password, the service provider's system automatically derives backup keys using stored public keys and encrypted data, allowing users to recover access without manual intervention or external assistance.
3Ease of operation
If web wallets are used for accessible bitcoin storage, then ease of access is improved, but vulnerability to hacking and regulatory issues increases
Solution Approach 1:
The system extracts the most critical security vulnerability from web wallets by removing the service provider's access to private keys. The architecture extracts only the essential web wallet function of providing accessible interface while eliminating the security risk of centralized key storage through cryptographic design.
Solution Approach 2:
The service provider acts as a secure intermediary that provides web wallet accessibility without holding private keys. The intermediary enables convenient web-based access to bitcoin while maintaining security through architectural separation, allowing users to access funds online without the service provider being a security target.
4Reliability
If client-side wallets are used for full key control, then security autonomy is improved, but the burden of malware protection and physical security increases
Solution Approach 1:
The system segments security responsibilities by dividing key management functions between the user's client-side wallet and the service provider's infrastructure. The user maintains security autonomy through control of their private key while offloading complex security management tasks such as backup key generation and encrypted storage to the service provider.
Solution Approach 2:
The service provider's platform provides multi-functional support for multiple wallet types and key management approaches. Users can choose between full client-side control or assisted key management while maintaining the same underlying security model, reducing the complexity burden through a unified architecture that serves multiple security preferences.
Data Source
AI summary
In an example, a network device is configured to generate a first public-private key pair. The network device is configured to receive, over an electronic network, public keys of two or more second public-private key pairs. The network device is configured to generate a digital currency address using the public keys of the two or more second public-private key pairs and a public key of the first public-private key pair.