Multi-tiered Digital Wallet Security with Segmented Password Tiers
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Solution Overview
Problem
Existing digital wallet infrastructure is underdeveloped and insecure, posing risks of unauthorized access and loss of control over digital currencies due to either user mismanagement of private keys or reliance on third-party key holders.
Innovation Solution
A multi-tiered digital wallet system that provides a secure interface for users, allowing them to abstract their digital currency holdings into password-protected compartments, with a central core and multiple wallet tiers, each accessible with distinct passwords, and optionally secured by multi-signature contracts, to manage and transfer digital currencies securely across decentralized peer-to-peer networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If users control their own private keys, then they maintain complete control over their digital currency, but they risk forgetting or mishandling their private keys and losing access to their digital wallets
Solution Approach 1:
The patent segments the digital wallet into multiple tiers (first tier, second tier, central core), each with its own access controls and password requirements. This segmentation allows users to maintain control over their digital currency while distributing risk across multiple access layers, so that losing one password does not result in complete loss of access.
Solution Approach 2:
The patent implements preliminary security measures by requiring password entry and authentication before accessing any tier of the digital wallet. Multi-signature contracts are established in advance, requiring multiple authorized signatures before transactions can be executed, preventing unauthorized access even if one password is compromised.
2Reliability
If users allow third parties to control their private keys, then they ensure the safety of their private keys and digital currency, but they forfeit complete control over their digital currency
Solution Approach 1:
The patent segments control authority across multiple tiers, where users retain control over the first tier wallet through their own passwords, while the second tier and central core can be managed with enhanced security measures including third-party custodians or multi-signature requirements. This allows users to benefit from third-party security expertise while maintaining operational control.
Solution Approach 2:
The patent introduces multi-signature contracts as intermediaries that require multiple authorized parties to approve transactions. This mediator mechanism allows users to engage trusted third parties without completely surrendering control, as multiple signatures are required and users can configure which parties have signing authority.
3Ease of operation
If a single password is used for digital wallet access, then ease of access is improved, but security is compromised due to potential unauthorized access
Solution Approach 1:
The patent divides the digital wallet into multiple tiers, each protected by distinct passwords. The first tier wallet can be accessed with a first password for routine operations, while the second tier and central core require a second password for higher-value or more sensitive operations. This segmentation maintains ease of access for common tasks while enhancing security for critical assets.
Solution Approach 2:
The patent applies the principle of partial action by requiring different levels of authentication for different tiers. Not all operations require the strongest authentication - routine transactions can use the first password, while only critical operations require the second password and multi-signature approval, balancing convenience with security.
Data Source
AI summary
Methods, systems, and apparatuses for facilitating multi-tiered digital wallet security are described herein. In some arrangements, a computing platform configured to operate within one or more decentralized peer-to-peer (P2P) networks may provide a digital wallet interface to a user computing device. Through the digital wallet interface, a user of the user computing device may be able to partition digital currency holdings into one or more differentiated storage compartments or tiers. Each of the one or more compartments may be password secured and may only permit access to the amount of digital currency holdings specified by the user. The user of the user computing device may enter a password corresponding to a compartment and the computing platform may provide access to the compartment based on the provided password. E.g., successive tiers may provide successively more limited (or enhanced) access to available funds, permissions, and the like.