Distributed Key Generation Using Fragmented Wallet Secrets

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Solution Overview

Problem

Private keys for encrypted currency wallets are vulnerable to loss and theft, posing significant risks for enterprises and large groups due to their centralized nature.

Innovation Solution

A distributed key generation system where multiple electronic devices generate data fragments that are combined through quadrature or summation operations, followed by hash algorithms to create a key in real time, with the key never being pre-generated or stored centrally, enhancing security by dispersing the data fragments across devices.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If a single private key is used for encrypted currency wallets, then convenience is improved, but security deteriorates due to the risk of key loss and theft

Engineering Contradiction:

Improveconvenience of key usageVSAvoidsecurity of key storage

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The private key is segmented into multiple data fragments that are distributed across multiple electronic devices. Each device holds only a portion of the key, making it impossible to reconstruct the key without all fragments. This segmentation resolves the contradiction by maintaining convenience (the key can still be used when all fragments are available) while dramatically improving security (the key cannot be stolen or lost from a single location).

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

A server device acts as an intermediary to facilitate key generation and reconstruction. The server coordinates the collection of data fragments from multiple electronic devices and performs the cryptographic operations to generate or reconstruct the private key. This intermediary mechanism enables secure distributed key management while maintaining operational convenience through centralized coordination.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If a private key is generated in advance and stored centrally, then ease of access is improved, but security deteriorates due to the vulnerability of centralized storage

Engineering Contradiction:

Improveease of key accessVSAvoidrisk of key leakage

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

Instead of storing a complete private key centrally, the system segments the key into multiple data fragments and distributes them across different electronic devices. This eliminates the single point of failure in centralized storage while maintaining ease of access through coordinated retrieval of fragments from multiple devices.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system performs preliminary key generation in a distributed manner before any potential security incident. Multiple electronic devices contribute their data fragments to the key generation process in advance, so that when the key is needed, it can be reconstructed without having been stored in a vulnerable centralized location. This preliminary distributed action prevents the key leakage risk inherent in centralized pre-storage.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS12580755B2Distributed key generation system and key generation method

Publication Date: 2026.03.17 BLOCK CHAIN SECURITY CORP

AI summary

A distributed key generation system and a key generation method are provided. The distributed key generation system includes a plurality of electronic devices and a server device. Each electronic device sends a data fragment. The server device synthesizes the key according to the data fragments. In this way, the key is not generated in advance, which can reduce the risk of key leakage.