Multi-Party Computation Financial Transaction System with Segmented Keys
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Solution Overview
Problem
Existing financial transaction systems require all users to participate in transactions, limiting the ability to perform transactions with third parties and exposing individual distribution keys if all user terminals are hacked.
Innovation Solution
A financial transaction system using individual distribution keys based on multi-party computation, where private keys are divided into pieces and shared among users, allowing transactions with signatures from some users without all users' participation, and encrypting keys to prevent exposure.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If all users must participate in transactions using multi-signature technology, then transaction security is improved, but transaction flexibility and ability to transact with third parties deteriorates
Solution Approach 1:
The patent segments the transaction participation requirement by introducing individual distribution keys that allow selective participation. Instead of requiring all users to sign every transaction, the system divides signing authority among multiple individual distribution keys, where only a threshold number need participate. This segmentation resolves the contradiction by maintaining security through distributed keys while enabling flexible third-party transactions.
Solution Approach 2:
The patent introduces individual distribution keys as intermediaries between the multi-signature requirement and third-party transactions. These keys act as mediators that enable transactions with external parties without requiring internal users to directly participate in every transaction, thus maintaining security while improving adaptability.
2Reliability
If all user terminals are hacked, then system security is compromised, but individual distribution keys remain protected due to encryption
Solution Approach 1:
The patent segments the private key into multiple pieces distributed across different users and terminals. Even if all terminals are hacked, the encryption of individual distribution keys ensures that no single compromised terminal can access the complete private key, thus protecting key security while acknowledging the harm of terminal compromise.
Solution Approach 2:
The patent applies preliminary encryption to individual distribution keys before they can be accessed or extracted from compromised terminals. This pre-emptive security measure counteracts the potential harm of terminal hacking by ensuring that even if terminals are compromised, the encrypted keys remain protected and cannot be easily extracted or used maliciously.
Data Source
AI summary
The present disclosure relates to a financial transaction system using individual distribution keys based on multi-party computation. The financial transaction system includes at least: a private key pieces generation unit dividing an individual private key corresponding to a user and generating private key pieces; an individual distribution key generation unit generating the individual distribution key corresponding to the user by using some of individual private key pieces shared with one or more other users and some of the plurality generated individual private key pieces; and a signature unit signing with the individual distribution key of the user, in which when a verification is performed by combining a signature value signed by the individual distribution key of the user and a signature value signed by individual distribution keys of one or more other users, the transaction is concluded between the users who sign.