NFC Tag Key Generation for Secure Cryptocurrency Wallets
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Solution Overview
Problem
Cryptocurrency wallets face security risks due to remotely accessible private keys, reliance on seed phrases for access, and limitations in device-specific access, making them vulnerable to hacking and loss, and users often resort to centralized exchanges which can lead to asset loss due to fraud or mismanagement.
Innovation Solution
A system utilizing a near field communication (NFC) device and passcode to generate authorization keys, where the NFC tag stores a first key and the user device performs key derivation or hashing functions to create a private key, ensuring the key is not stored on any device and can be used for secure transactions without exposing sensitive information.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If private keys are stored in software wallets or hardware wallets, then transaction authorization is enabled, but security is compromised due to remote accessibility and potential hacking
Solution Approach 1:
The patent extracts the private key storage function from traditional software/hardware wallets and replaces it with NFC-based key generation. The NFC tag stores a seed phrase that can regenerate the private key, removing the need to store the actual private key in memory while maintaining transaction authorization capability.
Solution Approach 2:
The NFC tag acts as an intermediary between the user and the private key. Instead of storing the private key directly in the wallet application or hardware device, the NFC tag serves as a secure intermediary that contains the seed phrase and enables key regeneration without exposing the private key to potential hackers.
2Adaptability or versatility
If seed phrases are used for access recovery, then device independence is achieved, but security is compromised due to potential leakage or theft of the seed phrase
Solution Approach 1:
The patent creates a secure copy of the seed phrase in the NFC tag rather than storing it in the wallet application. This copy can be regenerated on different devices without exposing the actual private key, allowing device independence while maintaining security through the NFC tag's protected storage.
3Ease of operation
If private keys are stored in centralized exchanges, then ease of use is improved, but security is compromised due to fraud or mismanagement by the exchange
Solution Approach 1:
The patent enables self-service by allowing users to generate and store their own private keys through NFC tags rather than relying on centralized exchanges. Users maintain control of their assets through the NFC-based system, eliminating the need to trust third-party exchanges while keeping the ease of use benefit.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
Enhances security by preventing key exposure, allowing secure access to digital assets across devices without storing sensitive information, reducing the risk of hacking and loss, and maintaining user control over private keys, thereby improving transaction security and asset protection.
Implementation Method 1
a near field communication (NFC) tag configured to store a first key
Data Source
AI summary
A key generation device for generating a private key includes a near field communication (NFC) tag configured to store a first key and a user device. The user device includes an input device configured to receive a first passcode from a user, a display screen configured to display information, a processor, and a memory including instructions stored thereon. The instructions, when executed by the processor, cause the user device to read the first key from the NFC tag and perform a first key derivation function or a first hashing algorithm based on the first key and the first passcode from the user to generate a private key. The private key is used to complete an operation that the user has intended to perform.