Secure Custodial Hardware for Encrypted Digital Asset Access

Resolve Bottlenecks,
Find Innovative Solutions
Generate Solutions

Solution Overview

Problem

Existing data management systems face challenges in securely managing sensitive data, particularly when executed on cloud servers, as entities may not wish to expose their data to cloud providers, and there is a need for efficient encryption and decryption techniques to protect sensitive information.

Innovation Solution

Data is encrypted by a client device and stored in encrypted form, with decryption handled by secure hardware, and re-encryption occurs before data is sent to the recipient, ensuring that plaintext data remains transient within secure hardware.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If digital assets are stored in digital wallets or on exchanges, then accessibility and ease of storage are improved, but security vulnerabilities and risk of loss increase

Engineering Contradiction:
ImproveaccessibilityVSAvoidsecurity
Core Design Contradiction:
Ease of operationVSReliability

Solution Approach 1:

The patent introduces a physical tangible token as an intermediary between the user and the digital asset. The token itself contains no valuable information, but serves as a key that, when presented to a reader, triggers the release of digital asset access. This mediator separates the physical possession from the digital access, resolving the contradiction by making the system both physically secure (requiring token possession) and digitally accessible (automatic release upon presentation).

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent creates a physical copy (tangible token) that represents control over the digital asset without containing the asset itself or sensitive information. The token is a simple physical object that can be securely stored, and when read by an appropriate device, it copies or transmits only the necessary access trigger information, not the full asset data, thus maintaining security while enabling accessibility.

Inventive Principle:
Principle #26Copying

2Ease of operation

If cryptographic keys are stored digitally, then ease of access is improved, but vulnerability to hacking and unauthorized access increases

Engineering Contradiction:
Improveaccess convenienceVSAvoidhacking risk
Core Design Contradiction:
Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The tangible token acts as an intermediary that eliminates the need to store cryptographic keys digitally. Instead of keeping keys in vulnerable digital storage, the system uses a physical token that contains no sensitive information. When the token is presented to a reader, it triggers the key release or asset transfer without the key ever being exposed in a vulnerable digital state during storage or transmission.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent extracts the sensitive cryptographic key information from the physical token. The token contains only a non-sensitive identifier or trigger code, while the actual cryptographic key is stored securely in a digital vault. This extraction separates the physical carrier from the sensitive data, allowing convenient physical handling without exposing the cryptographic secrets to potential hackers.

Inventive Principle:
Principle #2Taking out (Extraction)

3Reliability

If physical tangible tokens are used to store digital asset information, then security is improved, but the tokens become valuable targets for theft

Engineering Contradiction:
ImprovesecurityVSAvoidtheft risk
Core Design Contradiction:
ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The patent creates a physical copy (tangible token) that represents control over the digital asset without containing the asset itself or sensitive information. The token is a simple physical object that can be securely stored, and when read by an appropriate device, it copies or transmits only the necessary access trigger information, not the full asset data, thus maintaining security while enabling accessibility.

Inventive Principle:
Principle #26Copying

4Speed

If digital assets are transferred electronically, then speed and convenience are improved, but security risks and lack of physical control increase

Engineering Contradiction:
Improvetransfer speedVSAvoidsecurity control
Core Design Contradiction:
SpeedVSReliability

Solution Approach 1:

The tangible token acts as an intermediary that eliminates the need to store cryptographic keys digitally. Instead of keeping keys in vulnerable digital storage, the system uses a physical token that contains no sensitive information. When the token is presented to a reader, it triggers the key release or asset transfer without the key ever being exposed in a vulnerable digital state during storage or transmission.

Inventive Principle:
Principle #24Intermediary (Mediator)

Data Source

PatentEP3821586B1Systems and methods for secure custodial service
Publication Date: 2026.05.20 BLOCKCHAINS INC
  • EP3821586B1 patent drawingFigure 1A
  • EP3821586B1 patent drawingFigure 1B
  • EP3821586B1 patent drawingFigure 2A

AI summary

Systems and methods for providing a secure custodial service for managing a digital asset. The method comprises receiving a first value for use in decrypting at least one attribute value, receiving the at least one attribute value in encrypted form, and storing, on at least one storage device, the first value and the at least one attributed value in encrypted form, wherein at least one attribute value has been encrypted using a second value and a public key associated with secure hardware, and the second value corresponds to the first value.