Deterministic Sub-Wallet for Cryptocurrencies
A big challenge in cryptocurrency is securing a user key from potential hackers because nobody can rollback a transaction made by an attacker with a stolen key once the blockchain network confirms it. One solution to protect users is splitting the money between super-wallet and sub-wallet. The user...
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Published in | 2019 IEEE International Conference on Blockchain (Blockchain) pp. 419 - 424 |
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Main Authors | , |
Format | Conference Proceeding |
Language | English |
Published |
IEEE
01.07.2019
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Subjects | |
Online Access | Get full text |
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Summary: | A big challenge in cryptocurrency is securing a user key from potential hackers because nobody can rollback a transaction made by an attacker with a stolen key once the blockchain network confirms it. One solution to protect users is splitting the money between super-wallet and sub-wallet. The user stores a large amount of money on her super-wallet and keeps it safe; she refills the sub-wallet when she needs while using the sub-wallet for her daily purchases. In this paper, we propose a new scheme to create sub-wallet that we call deterministic sub-wallet. In this scheme, the seed of the sub-wallet keys is derived from the super-wallet master seed, and therefore the super-wallet can build many sub-wallet addresses and refill them in a single blockchain transaction. Compared to existing approaches, our mechanism is cheaper, real-time, more secure against man-in-the-middle attack and easier for backup and recovery. We implement a proof-of-concept on a hardware wallet and evaluate its performance. In addition, we analyze the attacks and defenses of this design to demonstrate that our proposed method has a higher level of security than existing models. |
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DOI: | 10.1109/Blockchain.2019.00064 |