Embedded Cryptocurrency Wallets for Air-Gapped Premises Security
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Solution Overview
Problem
Cyberattacks on cryptocurrency wallets have increased significantly, posing a risk to secure storage of digital assets, with existing solutions like online and mobile wallets offering inadequate protection against hacking and network vulnerabilities.
Innovation Solution
A premises security system with an embedded hardware-based cryptocurrency wallet, integrated with a security system base station, provides secure storage and monitoring, using multiple authentication layers and tamper-proof mechanisms to protect against cyber threats.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If cryptocurrency is stored in online or mobile wallets for convenience, then ease of operation is improved, but security and protection against cyberattacks deteriorates
Solution Approach 1:
The patent divides the cryptocurrency storage system into separate components: a hardware wallet device for secure storage and a security system base station for authentication and monitoring. This segmentation allows the cryptocurrency to be stored in a physically isolated, secure environment while maintaining convenient access through the security system interface, resolving the contradiction between ease of operation and security.
Solution Approach 2:
The security system base station acts as an intermediary between the user and the hardware wallet. It provides multiple authentication layers (biometric, PIN, security question) before allowing access to the cryptocurrency, thus maintaining ease of operation through automated authentication while enhancing security by requiring multiple verification steps.
2Reliability
If hardware-based cryptocurrency wallets are used for security, then security is improved, but device complexity and integration requirements worsen
Solution Approach 1:
The patent merges the cryptocurrency wallet functionality with the existing security system base station by integrating the hardware wallet as a component within the security system. This integration consolidates multiple functions (security monitoring, authentication, and cryptocurrency storage) into a single system, reducing overall device complexity while maintaining hardware-based security.
Solution Approach 2:
The security system base station is designed to perform multiple functions: it monitors premises security, authenticates users through multiple layers, and manages the hardware cryptocurrency wallet. This multi-functionality reduces device complexity by eliminating the need for separate dedicated cryptocurrency storage devices while maintaining security.
3Ease of operation
If cryptocurrency transactions require internet connection for accessibility, then ease of operation is improved, but vulnerability to network attacks and data breaches worsens
Solution Approach 1:
The patent extracts the cryptocurrency storage and private key management functions from the internet-connected environment and places them in a physically isolated hardware wallet within the security system. This extraction removes the cryptocurrency from the network-exposed environment, eliminating vulnerability to network attacks while maintaining ease of operation through local access via the security system base station.
Solution Approach 2:
The hardware wallet operates in an inert, air-gapped environment that is physically isolated from the internet and external networks. This isolated environment prevents network attacks and data breaches from compromising the cryptocurrency, while the security system base station provides the necessary interface for authorized transactions, maintaining ease of operation without exposing the cryptocurrency to network vulnerabilities.
Data Source
AI summary
A cryptocurrency management device configurable to communicate with a security system base station is described. The cryptocurrency management device comprises processing circuitry configured to receive a personal identification number (PIN) from the security system base station; provide access to a cryptocurrency wallet based on the PIN; and perform a cryptocurrency transaction associated with the cryptocurrency wallet subsequent to providing access to the cryptocurrency wallet.