Cryptocurrency Securing System Segmentation
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Solution Overview
Problem
Current cryptocurrency wallet systems face challenges in balancing security and real-time trading capabilities, with Hot Wallets being vulnerable to cyberattacks and Cold Wallets lacking accessibility and flexibility, and the two-layer wallet system having a robust security architecture that is not adequately addressed.
Innovation Solution
A cryptocurrency securing system with multiple apparatuses and controllers configured to perform independent operating systems for receiving, encrypting, and transmitting cryptocurrency transaction information through a blockchain network, utilizing personal identification numbers and asymmetric keys for secure key derivation and encryption, and incorporating a cloud server for enhanced security and redundancy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If Hot Wallet is used for real-time trading, then accessibility and flexibility are improved, but security is worsened due to vulnerability to cyberattacks
Solution Approach 1:
The wallet system is divided into two independent segments: Hot Wallet for real-time trading operations and Cold Wallet for secure key storage. The Hot Wallet handles transaction initiation and broadcasting, while the Cold Wallet securely stores private keys offline. This segmentation allows the system to maintain accessibility through the Hot Wallet while ensuring security through the Cold Wallet's offline key storage.
Solution Approach 2:
An intermediary communication mechanism is introduced between the Hot Wallet and Cold Wallet. The Hot Wallet acts as an intermediary that receives user trading requests, formulates transactions, and transmits them to the Cold Wallet for signature verification. This intermediary role allows the system to maintain real-time trading capability while ensuring that private keys never leave the secure offline environment.
2Reliability
If Cold Wallet is used for secure storage, then security is improved, but accessibility and flexibility are worsened due to lack of real-time access
Solution Approach 1:
The wallet system is divided into two independent segments: Hot Wallet for real-time trading operations and Cold Wallet for secure key storage. The Hot Wallet handles transaction initiation and broadcasting, while the Cold Wallet securely stores private keys offline. This segmentation allows the system to maintain accessibility through the Hot Wallet while ensuring security through the Cold Wallet's offline key storage.
Solution Approach 2:
The Cold Wallet performs preliminary actions by pre-generating and securely storing private keys offline before any trading operations are needed. When a trading request arrives at the Hot Wallet, the necessary cryptographic operations are already prepared in the Cold Wallet, enabling rapid response without compromising security or requiring real-time internet connection for key management.
3Reliability
If two-layer wallet system is implemented, then balance between security and real-time trading is improved, but device complexity is worsened
Solution Approach 1:
The system merges the functionality of Hot Wallet and Cold Wallet into a unified cryptocurrency securing system with a single user interface. The controller intelligently routes operations between the hot and cold storage components, presenting a simplified interface to users while managing the complexity of coordinating between offline key storage and online trading operations.
Solution Approach 2:
The controller is designed with multi-functionality, serving as both the interface for user interactions and the coordinator between Hot Wallet and Cold Wallet operations. It handles transaction creation, key management, signature verification, and communication with the blockchain network, consolidating multiple functions into a single component that manages the two-layer architecture.
Data Source
AI summary
The present disclosure provides a cryptocurrency securing system and a cryptocurrency securing method thereof. The system receives a cryptocurrency transaction information from a user device, and determines whether a policy data corresponding to the cryptocurrency transaction information is legal. When the policy data corresponding to the cryptocurrency transaction information is legal, the system derives a cryptocurrency private key information via a personal identification number of the user device. The system then encrypts the cryptocurrency transaction information via the cryptocurrency private key information for deriving an encrypted cryptocurrency transaction information, and broadcasts the encrypted cryptocurrency transaction information to a blockchain network.