Secure Multi-Party Protocol Key Derivation
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Solution Overview
Problem
Existing data security protocols are cumbersome and expensive, particularly when dealing with multiple intermediary entities, as they require hardware security modules (HSMs) for key management and rotation, which is not viable for all entities due to costs and complexity.
Innovation Solution
The Secure Multi-Party Protocol (SMPP) enables secure communication between entities without the need for HSMs by using a method that includes receiving a request data packet with a control block encrypted with a public key, extracting a symmetric key, and generating a response data packet, allowing for end-to-end encryption and integrity verification without relying on HSMs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If hardware security modules (HSMs) are used for key management and rotation, then data security is improved, but device complexity and cost increase
Solution Approach 1:
The patent extracts the key management functionality from expensive HSM hardware and implements it through software-based key derivation mechanisms. Each intermediary entity derives encryption keys locally using a shared secret and entity-specific identifiers, eliminating the need for centralized HSM management while maintaining security.
Solution Approach 2:
Each intermediary entity autonomously generates and manages its own encryption keys by deriving them from a shared secret and its unique entity identifier. This self-service approach eliminates the need for external HSM infrastructure and simplifies key rotation, as each entity independently manages its cryptographic materials.
2Reliability
If HSMs are deployed for secure key storage, then encryption security is improved, but cost and ease of operation worsen
Solution Approach 1:
The patent replaces the mechanical HSM hardware system with a software-based key derivation system. Instead of physically securing keys in HSM devices, the system uses cryptographic derivation functions that generate keys programmatically from shared secrets and entity identifiers, making key management software-driven and more operationally flexible.
3Reliability
If key rotation protocols are implemented, then security is improved, but time and operational complexity increase
Solution Approach 1:
The system performs preliminary key setup by establishing a shared secret among all intermediary entities before actual data transmission begins. This preliminary action enables each entity to independently derive keys as needed during operation, eliminating the need for time-consuming coordinated key rotation protocols while maintaining security through ephemeral key usage.
Data Source
AI summary
A requestor and a responder may conduct secure communication by making API calls based on a secure multi-party protocol. The requestor may send a request data packet sent in a API request to the responder, where the request data packet can include at least a control block that is asymmetrically encrypted and a data block that is symmetrically encrypted. The responder may return a response data packet to the requestor, where the response data packet can include at least a control block and a data block that are both symmetrically encrypted. The requestor and the responder may derive the keys for decrypting the encrypted portions of the request and response data packets based on some information only known to the requestor and the responder. The secure multi-party protocol forgoes the need to store and manage keys in a hardware security module.


