Offline Cryptocurrency Key Sharding and Encryption
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Conventional key distribution and storage systems in the cryptocurrency field face challenges in securing private keys, particularly for multi-signature schemes, which often require anonymization of key holders and are currency-specific, lacking universal applicability across multiple blockchains.
Innovation Solution
A method that involves encrypting cryptocurrency private keys, dividing them into alpha shards, and further encrypting these shards with secondary encryption keys to generate beta shards, which are then stored offline. This system allows for a multisignature blockchain transaction authorization scheme and can be universally applied across various cryptocurrencies.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional multi-signature schemes are used to secure cryptocurrency wallets, then security is improved through multiple key holders, but the key holders must be anonymized and the scheme is currency-specific, reducing versatility
Solution Approach 1:
The private key is divided into multiple shards using secret sharing schemes, where each shard is distributed to different key holders. This segmentation allows the system to achieve both security through distribution and versatility across different cryptocurrencies, as the shards can be recombined to restore the original key for any currency-specific wallet.
Solution Approach 2:
The system creates a universal key distribution mechanism that can be applied across multiple blockchain networks and cryptocurrency types. By using standardized encryption and secret sharing protocols, the same shard distribution system can secure wallets for different currencies without requiring currency-specific customization.
2Reliability
If private keys are distributed to multiple key holders for multi-signature security, then security is improved, but the complexity of key management and distribution increases
Solution Approach 1:
The patent introduces encryption intermediaries and trusted third parties that facilitate key shard distribution and reconstruction. These intermediaries manage the complex operations of encrypting, distributing, and recombining key shards, thereby maintaining security while reducing the operational complexity for end users.
Solution Approach 2:
The system performs preliminary encryption and shard distribution operations before any transaction occurs. By pre-distributing encrypted key shards to multiple holders and establishing the reconstruction protocol in advance, the system simplifies the actual transaction process while maintaining high security standards.
3Reliability
If private keys are stored offline for enhanced security, then security is improved, but the ability to quickly access and use the keys for transactions is reduced
Solution Approach 1:
The system performs preliminary distribution of encrypted key shards to multiple holders in advance. When a transaction is needed, the shards can be quickly retrieved and combined through the established reconstruction protocol, enabling fast access while maintaining offline storage security.
Solution Approach 2:
By segmenting the private key into distributed shards that can be independently stored offline, the system enables parallel retrieval operations. Multiple key holders can simultaneously provide their shards, and the reconstruction process can proceed in parallel, maintaining speed while preserving security through distributed offline storage.
Data Source
AI summary
A method for storing a cryptocurrency private key offline, including: encrypting the cryptocurrency private key using a primary encryption key; sharding the encrypted cryptocurrency private key into a plurality of alpha shards; generating beta shards by encrypting the alpha shards with secondary encryption keys; and storing representations of the beta shards offline. The method can additionally or alternatively include: retrieving the representations of the beta shards from the offline storage; decrypting the beta shards into the alpha shards based on the secondary encryption keys; reconstructing the encrypted cryptocurrency private key by recombining the alpha shards; and decrypting the encrypted cryptocurrency private key with the primary encryption key.