The second largest bank in America has won a patent that will secure cryptocurrency storage through a ‘tamper responsive’ remote storage of private keys. The patent adds to the growing list of patents that have been secured by traditional financial institutions. It’s a move that shows the growing interest in cryptocurrencies from these organizations.
The Problem With Existing Storage Methods
The patent was initially filed two years ago but was finalized and entered into the record last week. According to the patent documents, the system will try to address the problem with existing storage methods for private cryptocurrency keys.
The document states:
“Such devices do not provide for a real-time response to such breaches, such that misappropriation of private cryptography keys is prevented.” The patent adds that most private keys are stored in regular consumer-grade devices, and they are “susceptible to being misappropriated by an entity that desires to usurp a user’s identity.”
Now with the patent, the bank hopes to serve as the bank for private keys. A digital safe deposit box that has the necessary insurance and backing of a significant banking corporation. If they go ahead and commercialize the ‘product now,’ they are likely to find a massive market for it.
The bank will offer its clients the ability to know in real-time when their private keys have been tampered with as well as providing a solution to the problem. It’s an invention that will serve all types of clients. However, the biggest beneficiaries will be crypto exchanges and large clientele who are usually the target of many hack attempts.
The documents describe a system of redundant keys. The system will automatically respond to tamper attempts by deleting the private key from the potentially compromised device.
“In specific embodiments of the system, the storage device further includes one or more sensors in communication with the first processor. In such embodiments of the system, the first processor is further configured to, in response to receiving the tamper-related signals from the one or more sensors, delete the one or more private cryptography keys from the first memory.”
The system will also perform the function in case there is physical tampering of the device, like when its stolen.
“In other specific related embodiments of the system, the one or more sensors further comprise at least one of a shock sensor, an acceleration sensor, and a temperature sensor, In such embodiments of the system, the first processor is further configured to, in response to receiving the tamper-related signals from at least one of the shock sensor, the acceleration sensor, and the temperature sensor, delete the one or more private cryptography keys from the first memory.”
The third instance where it will delete the private key from the client’s device is when a malicious code or a virus is detected.
“In other specific embodiments of the system, the first processor is further configured to receive the tamper-related signal, from the computing node. In such embodiments of the system, the tamper-related signal indicates that a user has exceeded a predetermined number of attempts of inputting user authentication credentials to the authentication routine.”
According to the document, users will have the ability to set the tamper signals and configure how they are processed.
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.