Cryptoasset Custody Quorum Endorsement With Mobile Risk Validation
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Solution Overview
Problem
Existing custodial systems for cryptoassets lack robust risk mitigation mechanisms, particularly for businesses requiring multiple users to access cryptographic funds, and existing hardware wallets limit access to a single device, failing to meet regulatory requirements for secure storage and access control.
Innovation Solution
A cryptoasset custodial system utilizing a server computer, user devices with secure enclaves, and a hardware security module for multi-user validation, biometric authentication, and policy-based quorum endorsements, ensuring secure storage and controlled access through cryptographic endorsements and risk analysis.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If hardware wallets and cold storage are used to store cryptocurrency, then security is improved, but access is limited to only the owner of the device
Solution Approach 1:
The system divides access control into multiple independent user devices, each holding a portion of the cryptographic keys. No single device has full access, but collectively they enable authorized transactions through multi-signature validation, resolving the contradiction between security and multi-user access.
Solution Approach 2:
The system combines multiple user endorsements and cryptographic signatures into a single transaction validation process. By merging the security features of multiple hardware wallets with a centralized custodial platform, it enables both secure storage and multi-user access capabilities.
2Ease of operation
If multiple users are allowed to access cryptographic funds, then ease of operation is improved, but risk of unauthorized access increases
Solution Approach 1:
The system pre-configures policy-based quorum rules and user permissions before transactions occur. By establishing authorization policies in advance, the system enables multi-user access while preventing unauthorized transactions through pre-defined security constraints.
Solution Approach 2:
The system implements real-time risk analysis that monitors transaction requests against established policies and user behaviors. This feedback mechanism dynamically assesses risk levels and can block suspicious transactions, allowing multi-user access while mitigating unauthorized access risks.
3Reliability
If policy-based quorum endorsement is required for transactions, then reliability is improved, but device complexity increases
Solution Approach 1:
The system introduces a centralized custodial platform as an intermediary that manages the complexity of quorum validation, policy enforcement, and risk analysis. This mediator handles the computational and logical complexity, allowing individual user devices to remain relatively simple while achieving high transaction integrity.
Data Source
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AI summary
Methods, systems, and apparatus for risk mitigation for a cryptoasset custodial system include transmitting an endorsement request for a cryptoasset transaction to a user device configured to cause the user device to prompt a user to endorse the cryptoasset transaction. Multiple data points are collected from mobile devices associated with the user. The data points indicate an identity of the user. A cryptographic endorsement of the cryptoasset transaction is received from the user device. A graphical visualization including a risk metric is generated based on the data points. The risk metric indicates a risk of accepting the cryptographic endorsement from the user device. Generating the graphical visualization includes determining whether the plurality of data points matches expected values.