Distributed Electronic Wallet Security via Multi-Lock Encryption

The private key is divided into multiple shares using secret sharing schemes, distributing cryptographic security across multiple IoT devices rather than concentrating it in a single device. This segmentation enables transaction capability while enhancing security through distributed key management, preventing single-point compromise that led to balance loss.

The patent implements nested encryption layers where multiple encryption techniques are applied hierarchically to protect the private key shares. Each layer provides additional security protection, creating a nested structure that must be systematically decrypted, thereby maintaining security reliability while enabling secure transactions in constrained IoT environments.

The complex security protocol is segmented into distinct functional modules: key generation, key sharing, encryption layers, and multi-signature verification. Each module operates independently with well-defined interfaces, reducing overall system complexity while maintaining enhanced security through coordinated operation of these segmented components.

The patent introduces intermediary components such as key management servers and coordination protocols that mediate between the complex encryption techniques and the constrained IoT devices. These intermediaries handle computationally intensive operations centrally, allowing individual devices to participate in secure transactions without bearing the full complexity burden.

The patent extracts the computationally intensive and memory-intensive key management operations from the constrained IoT devices and relocates them to external key management infrastructure. Only essential cryptographic primitives remain on-device, while distributed key shares and encryption/decryption operations are performed externally, reducing memory requirements while maintaining protection against balance loss.

The patent replaces physical storage of complete private keys in device memory with cryptographic mathematical operations on distributed key shares. Instead of storing large key materials locally, the system uses mathematical relationships among share fragments that require minimal storage but provide equivalent security, effectively substituting mechanical storage with computational cryptography.