Private Key Share Dispersal with Threshold QR Recovery
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Solution Overview
Problem
Existing methods for securely storing private keys in blockchain technology are vulnerable to hacking, phishing, and insider attacks, leading to irreversible loss of funds due to the irreversible nature of blockchain transactions.
Innovation Solution
A method and system that divides a private key into multiple shares, requiring a threshold number of shares to perform transactions, with at least one share encoded as a QR code for secure management and recovery.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If private key is stored in traditional methods (software wallets or exchanges), then ease of access is improved, but security against hacking and insider attacks deteriorates
Solution Approach 1:
The private key is divided into multiple shares using secret sharing schemes. Each share is distributed to different entities or storage locations, so that no single entity possesses the complete private key. This segmentation resolves the contradiction by maintaining security (the key is protected even if one share is compromised) while enabling access (multiple shares can be combined to reconstruct the key when needed).
Solution Approach 2:
The patent introduces trusted intermediaries or custodians who hold specific shares of the private key. These intermediaries act as mediators that can facilitate key reconstruction when authorized, providing a controlled mechanism for access that balances security requirements with operational needs. The intermediary structure prevents direct access to the full key while enabling authorized recovery or transactions.
2Reliability
If private key is divided into multiple shares distributed across entities, then security is improved, but complexity of key management increases
Solution Approach 1:
The patent creates multiple copies of key shares in the form of QR codes or other machine-readable formats. These copies can be distributed, stored, and transmitted without increasing the complexity of the underlying cryptographic system. The copying mechanism simplifies management by providing tangible, easily replicable representations of the key shares that can be handled like physical or digital documents.
Solution Approach 2:
The patent transforms the private key from a single continuous secret into discrete, quantized shares with specific mathematical properties. By changing the parameter representation of the key (from one large secret to multiple smaller shares with defined reconstruction thresholds), the system manages complexity through structured parameterization rather than unstructured distribution.
3Object-affected harmful factors
If private key is divided and shares distributed, then risk of unauthorized access is reduced, but risk of loss increases if shares cannot be recovered
Solution Approach 1:
The patent implements preliminary key recovery mechanisms by pre-distributing backup shares or recovery information to trusted parties before any loss occurs. This preliminary action ensures that if original shares are lost or damaged, authorized recovery is already possible through the pre-established distribution network, thereby reducing both unauthorized access risk and loss risk simultaneously.
Solution Approach 2:
The system provides beforehand cushioning by creating redundant key shares and establishing multiple pathways for key reconstruction before any security incident or loss occurs. This cushioning mechanism ensures that the system can withstand the loss of certain shares while maintaining both security (through threshold requirements) and reliability (through available recovery paths).
Data Source
AI summary
Techniques of securely storing and managing a private key may include receiving, by an application executing on a computerized device, the private key. The application may divide the private key into two or more shares such that at least two shares of the two or more shares are required to perform transactions associated with the private key. The application may then divide the private key and a first share of the two or more shares into at least three sub-shares such that at least a threshold number of two or more sub-shares of the at least three sub-shares are required to reconstruct the private key, the first share, or both. The application may further encode at least one of the at least three shares as quick response (QR) code images.


