Distributed Wallet Security

Distributed Wallet Security

Multi-Signature Authorization: Use multiple wallet shares to authorize transactions, thereby improving security.

EPID Key Recovery: Use EPID (Enhanced Privacy ID) keys to improve security and enable key recovery in case of key loss or theft.

Shamir Secret Sharing: Split a key into multiple parts and distribute them to different participants, thereby improving the security of the key.

Time Wallet: Create a temporary wallet for a single transaction and delete it immediately after the transaction is completed, thereby reducing the risk of attack.

Distributed Wallet Custody: Use blockchain and other distributed computing technologies to distribute wallet assets across multiple nodes.

Fractional Transactions: Split a transaction into multiple smaller transactions and assign them to different wallet shares.

Context-Based Authentication: Use contextual information (e.g. user location, biometric data) to enhance the security of the wallet.

Physically Unclonable Function (PUF): Use hardware-generated unique identifiers to protect the wallet from unauthorized access.

Radio Frequency Identification (RFID) Wallet Tracking: Use RFID technology to track the location of wallet shares and enhance anti-fraud protection.

How are distributed wallets different from traditional wallets?

What role does EPID play in a distributed e-wallet context?

How does Shamir Secret Sharing enhance e-wallet security?

What is the purpose of a time wallet?

Explain the concept of fractional transactions and their advantages in a distributed e-wallet.

What is the significance of the M of N strategy in e-wallet transaction authorization?

Describe how context-based authentication can be used to secure e-wallet transactions.

How can PUF be used to improve e-wallet security?

What is the role of RFID in the context of distributed e-wallets?

How does e-wallet escrow help recover a lost or stolen e-wallet?

Answer

A distributed e-wallet distributes its assets across multiple nodes or devices, while a traditional e-wallet stores them in a single location. This makes distributed e-wallets more resistant to attacks and theft.

EPID is an enhanced privacy ID that allows devices to be authenticated without revealing their identity. In a distributed e-wallet, EPID can be used to generate keys and sign transactions while protecting user privacy.

Shamir Secret Sharing divides a key into multiple parts and distributes each part to different participants. The key can only be reconstructed when a certain number of participants combine their shares. This makes it more difficult for an attacker to steal the key and compromise the e-wallet.

A temporal wallet is a temporary wallet created for a single transaction and deleted immediately after the transaction is completed. This approach minimizes security risks by reducing the time the wallet is exposed to potential attacks.

Fractional transactions involve breaking a transaction into multiple smaller transactions and assigning them to different wallet shares. This allows users to conduct transactions even when one or more shares are unavailable or compromised.

M of N policies require at least M of the N authorized wallet shares to approve a transaction. This provides an additional layer of security against unauthorized transactions because multiple devices need to collaborate to complete a transaction.

Context-based authentication uses various factors such as user location, biometric data, or device information to verify transactions. It enhances wallet security by requiring specific conditions to be met before authorizing a transaction.

PUF is a hardware-generated unique identifier that can be used to create a tamper-proof authentication mechanism for wallets. By using the PUF response to authenticate the device, the wallet application can prevent unauthorized access and fraudulent transactions.

RFID can be used to track the location of physical wallet shares. This information can be used to create a secure network of distributed wallets where transactions can be verified based on the location of users and wallet shares.

Wallet escrow involves distributing wallet key shares among multiple agents. If the key is lost or stolen, it can be recovered by combining the shares of a certain number of agents.

Glossary

Term Definitions Blockchain A growing list of records, called blocks, that are linked and secured using cryptography. EPID (Enhanced Privacy ID) A technique that allows devices to be authenticated without revealing their identity. Shamir Secret Sharing A technique where a secret is split into multiple parts and shared among multiple parties, so that a certain number of shares are required to reconstruct the full secret. Temporal Wallet A temporary wallet created for a single transaction and deleted immediately after the transaction is completed. Distributed Wallet A wallet whose assets are distributed across multiple nodes or devices rather than stored in one location. Fractional Transaction A transaction is split into multiple smaller transactions and assigned to different wallet shares. Mo of N policy A security policy that requires at least M out of N authorized entities to approve a transaction or action. Context-based Authentication A security method that leverages contextual information, such as user location, biometric data, or device details, to authenticate users and authorize transactions. Physical Unclonable Function (PUF)A hardware security primitive that exploits random variations in a physical system to generate a unique identifier or key that is unique to each device. Radio Frequency Identification (RFID)A wireless communication technology that uses electromagnetic fields to automatically identify and track objects to which a tag is attached. E-wallet HostingA system that distributes the management and protection responsibility of e-wallet keys or assets to multiple trusted parties. Disclaimer