A Distributed Encryption Management Method, Device, and System for Cryptocurrency Wallets

·

Technical Field

The invention pertains to internet technology, specifically addressing a distributed encryption management solution for cryptocurrency wallets.

Background

Cryptocurrencies (e.g., Bitcoin) rely on cryptographic key pairs:

Current Private Key Management Challenges:

| Method | Pros | Cons |
|----------------|-------------------------------|--------------------------------|
| Software | Easy to use | Vulnerable to attacks |
| Hardware | High security | Risk of physical loss |
| Cloud KMS | Centralized management | Trust issues with providers |

Invention Summary

A distributed Key Management System (KMS) enhances security and usability by:

Key Workflow:

  1. Private Key Acquisition:

    • User uploads a self-generated key or
    • KMS node creates a key pair (elliptic curve algorithm).
  2. Key Synchronization:

    • Sync to all nodes or
    • Geo-based/level-based sync for efficiency.
  3. Transaction Signing:

    • Local node signs transactions; queries others if needed.

Advantages

👉 Discover how decentralized KMS improves wallet security

FAQs

Q1: How does this method prevent key loss?
A1: Keys are distributed across nodes—failure of one node doesn’t compromise access.

Q2: Is user authentication required for transactions?
A2: Yes, biometric/password verification ensures only authorized requests.

Q3: Can this system integrate with existing wallets?
A3: Yes, via KMIP protocol for standardized communication.

Conclusion

This innovation balances security, scalability, and user trust, addressing critical gaps in cryptocurrency wallet management.

👉 Explore advanced key management solutions


### Keywords:  
1. Cryptocurrency Wallet  
2. Distributed KMS  
3. Private Key Security  
4. Key Synchronization  
5. Trustless Design  
6. KMIP Protocol  
7. Intel SGX