Hardware Wallet Key Isolation for Multi-Host Digital Payments
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Solution Overview
Problem
Existing digital payment systems face security vulnerabilities due to human error and resource-intensive blockchain management, particularly in IoT devices and network systems, with a need for improved data fidelity and user authentication.
Innovation Solution
A hardware wallet with a removable memory device that stores cryptographic keys, enabling secure, air-gapped 'cold' storage and communication with host devices, utilizing blockchain technology for secure digital asset management and smart contracts to enhance security and reduce resource consumption.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If digital payment systems use blockchain technology for secure transactions, then security and data fidelity are improved, but resource consumption and device complexity increase
Solution Approach 1:
The system divides the digital wallet functionality into two separate components: a hardware wallet for secure key storage and a software wallet for transaction management. This segmentation allows the resource-intensive blockchain operations to be performed by the software wallet while the hardware wallet maintains security with minimal resource consumption.
Solution Approach 2:
The patent introduces a hardware wallet as an intermediary device that bridges secure key storage and blockchain transactions. The hardware wallet acts as a mediator that protects private keys while enabling secure interactions with the blockchain network through a software interface, reducing the resource burden on end devices.
2Ease of operation
If cryptographic keys are stored in digital wallets for payments, then payment functionality is enabled, but security vulnerabilities from human error and device compromise increase
Solution Approach 1:
The patent extracts the cryptographic key storage function from vulnerable software environments and places it in a dedicated hardware wallet device. This extraction removes the security vulnerabilities associated with software-based key management while preserving payment functionality through the hardware wallet's secure interface.
Solution Approach 2:
The system replaces software-based key management (virtual/mechanical system) with hardware-based secure element storage (physical system). This substitution leverages the inherent security properties of hardware security modules to protect cryptographic keys from the vulnerabilities that plague software implementations.
3Adaptability or versatility
If hardware wallets enable communication with multiple host devices, then versatility and user convenience are improved, but security risks from unauthorized access increase
Solution Approach 1:
The hardware wallet implements dynamic authorization mechanisms that adapt to different host devices. The system can change its security parameters, authorized device lists, and communication protocols based on the specific host device, allowing versatility while maintaining security through context-aware access control.
4Productivity
If digital wallets store credentials and private keys, then transaction capability is enabled, but data loss from device failure or theft increases
Solution Approach 1:
The patent implements local quality by storing different types of data in different locations with appropriate security measures. Sensitive cryptographic keys are stored in the secure hardware wallet, while non-sensitive transaction data can be stored in software. This differentiated storage approach minimizes information loss risk while maintaining full transaction capability.
Data Source
AI summary
A hardware wallet can enable management of digital assets. The hardware wallet includes a microcontroller and a non-volatile flash memory. The hardware wallet can authorize an electronic device to perform electronic payments with digital assets on a blockchain associated with keys of a digital wallet stored on the non-volatile flash memory. The electronic device is authorized to perform electronic payments in response to user input and while the electronic device hosts the hardware wallet. The hardware wallet can also enable a payment card to perform electronic payments with the digital assets while the hardware wallet is disposed on the payment card. As such, electronic payments are authorized based on a communication exchange between the hardware wallet and a remote server of a payment system via a point-of-sale (POS) system that accepts the payment card.


