Cryptocurrency Wallet Key Splitting With NFC Card Authentication
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Solution Overview
Problem
Current cryptocurrency wallets, both hot and cold, face vulnerabilities due to storing private keys entirely on devices, lack personalization, and are inconvenient or costly, with NFC-based solutions still underdeveloped and risky.
Innovation Solution
A method involving two-layer encryption of private keys, splitting them into segments stored on a user terminal device and an NFC card, allowing customizable NFC cards for enhanced security and convenience.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If private keys are stored entirely on user terminal devices in hot wallets, then ease of operation is improved, but security is worsened due to vulnerabilities in wallet software, hacker intrusions, and malware attacks
Solution Approach 1:
The patent divides the private key into two separate segments and stores them in different locations: one segment on the user terminal device and the other segment on an NFC card. This segmentation ensures that even if one storage location is compromised, the complete private key remains secure, thereby resolving the contradiction between ease of operation and security.
2Ease of operation
If private keys are stored entirely on user terminal devices, then ease of operation is improved, but security is worsened due to high susceptibility to hacking and theft
Solution Approach 1:
The patent segments the private key storage across two different devices (user terminal and NFC card), making it significantly more difficult for hackers to compromise both locations simultaneously. This segmentation directly addresses the vulnerability to hacking and theft while maintaining operational convenience.
3Reliability
If cold wallets are used to store private keys securely, then security is improved, but device complexity and cost are worsened due to high investment cost and multiple additional steps required
Solution Approach 1:
The patent introduces an NFC card as an intermediary device that stores a segment of the private key. This intermediary approach provides enhanced security similar to cold wallets but with much lower complexity and cost, as NFC cards are inexpensive and the interaction remains simple through near-field communication.
4Reliability
If cold wallets are used to store private keys securely, then security is improved, but ease of operation is worsened due to multiple additional steps such as logging in, connecting to computer or phone, and signing transactions
Solution Approach 1:
The NFC card serves as a simplified intermediary that maintains security while drastically reducing operational complexity. Users simply need to tap the NFC card near their device for authentication, eliminating the multiple steps required by traditional cold wallets such as logging in, connecting devices, and manually signing transactions.
5Ease of operation
If NFC cards are used to store private keys, then ease of operation is improved with single-touch authentication, but security is worsened due to risks of theft and loss of the NFC card
Solution Approach 1:
The patent segments the private key so that only a portion is stored on the NFC card, while another portion remains on the user terminal device. This segmentation mitigates the risk associated with NFC card theft or loss, as possession of the card alone is insufficient to access the complete private key or cryptocurrency assets.
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
Provides secure, cost-effective, and personalized cryptocurrency transactions with reduced risk of theft, enabling easy restoration and single-touch authentication.
Implementation Method 1
Recently, there has been development in the market for cryptocurrency wallets stored using Near-Field Communication (NFC) technology, which uses a wireless connection standard over short distances.
Data Source
AI summary
The present invention relates to a method for securing cryptocurrency wallets to increase cryptocurrency wallet security by having a private key encrypted along with a user terminal device and one of the previously encrypted solution-specific default passwords, which is split into two segments, one segment is stored at the user terminal device, the other segment will be stored in the NFC cards.