Digital Asset Vaults with Layered Encryption and HSM Key Management
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Solution Overview
Problem
Existing methods for securing digital assets, such as crypto wallet mnemonics and sensitive information, are vulnerable to theft or loss, leading to potential unauthorized access and security breaches.
Innovation Solution
A system utilizing multiple encryption layers, including Elliptic Curve Diffie Hellman Ephemeral (ECDHE), RSA-OAEP, and Post-Quantum Cryptography (PQC), along with hardware security modules (HSMs), to securely transport and store digital assets in a vault, ensuring secure access and management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If data is encrypted multiple times and stored in a vault with HSMs, then security and protection against unauthorized access is improved, but system complexity and processing time increase
Solution Approach 1:
The encryption process is segmented into multiple distinct layers: ECDHE for key exchange, RSA-OAEP for data encryption, and PQC for quantum-resistant protection. Each layer operates independently with its own key management, allowing the system to achieve high security through composition rather than monolithic complexity. The HSM further segments key management operations from data storage operations.
Solution Approach 2:
The patent implements nested encryption where data is encrypted with RSA-OAEP, then the ciphertext is encrypted again with PQC algorithms, creating layered protection. The HSM stores encrypted keys within encrypted data structures, forming nested security containers that protect assets at multiple levels simultaneously.
2Reliability
If multiple encryption layers are applied to data, then protection against theft and loss is improved, but processing time and computational resources increase
Solution Approach 1:
The system performs preliminary key generation and encryption setup before actual data storage. HSMs pre-generate key pairs and store them in secure memory before they are needed for encryption operations. The vault pre-establishes encryption pipelines and caches cryptographic parameters to minimize processing time during actual encryption operations.
Solution Approach 2:
The HSM acts as an intermediary that handles the computationally intensive key management and encryption operations, freeing the main application system from direct involvement in these time-consuming processes. The HSM's specialized hardware architecture is optimized for cryptographic operations, reducing processing time compared to software-based encryption.
3Reliability
If data is stored with multiple encryption layers and categorization, then security and organization are improved, but ease of access and retrieval is reduced
Solution Approach 1:
Different encryption schemes and key management approaches are applied to different data categories and access scenarios. Frequently accessed data uses optimized encryption paths with pre-loaded keys, while less frequently accessed data employs more robust but slower encryption methods. The HSM provides different access modes for different security requirements.
Solution Approach 2:
The system monitors access patterns and encryption performance, adjusting key caching strategies and encryption parameter selection based on observed usage. The vault tracks which encrypted assets are accessed most frequently and optimizes their storage and retrieval paths accordingly, balancing security with accessibility based on actual system feedback.
Data Source
AI summary
Securing digital assets in a vault that interfaces with multiple different third-party wallets to store keys/mnemonics. The vault interface accepts input from multiple different party wallets to combine multiple encryptions and secure storage techniques. Numerous cryptographic mechanisms are employed to securely pull a mnemonic phrase from a third-party wallet and into an institution's vault. A customer's mnemonic phrase is securely transported from a personal wallet into a secured institution's encrypted vault using the power of HSM to encrypt and decrypt a customer's mnemonic phrase securely.