Tangem received a United States patent as a self-custodial cryptocurrency wallet provider for its specialty private key backup method.
The United States Patent and Trademark Office (USPTO) approved Tangem’s patent on January 28 after reviewing the company’s secure private key management breakthrough.
The patent names a method that enhances security for users who store their private keys on self-custodial wallets. A secure connection lets users safely move private keys between Tangem’s storage device and mobile phones.
Tangem’s Innovative Backup System
In cryptocurrency, self-custody means users hold and control their digital assets without giving anyone outside of themselves access to their private keys. This security method gives users better control, but problems like lost keys or stolen items make it too hard for many people to use.
With its patented backup system, Tangem ensures users can maintain self-custody security without manually handling private keys. Backup authentication devices help users gain secure access to their accounts in the security system.
The technology provides neither-seed backup methods secured by encryption, trustless data transfer, and tamper-proof protection. Using ECDH cryptographic methods, the system helps users securely exchange and calculate their private keys.
You need two trusted devices like Tangem cards or rings for backup transmission of your private keys through an untrusted middle element like a smartphone. According to Andrey Lazutkin Tangem’s CTO, the system shields key security from intermediary trust, ensuring private keys stay protected even when the smartphone is breached.
Controversy Surrounding Private Key Backup Technology
According to Lazutkin’s statement, the system protects private keys since the transmitting device does not matter what firmware comes with it, and antivirus solutions are present.
Some cryptocurrency professionals reject private key backup technology because of its limitations. In 2023, Ledger faced customer complaints about its private key backup system, which used cloud storage simultaneously. Though the company faced pushback, Ledger moved forward with its product launch in 2024.
Tangem hit a security problem in its mobile application in 2024, which exposed private keys through customer emails to some users. The company found and repaired an app glitch that was responsible for exposing private keys during log processing.
People who believe in Bitcoin often follow the rule that private keys belong to their holders when claiming digital assets. Users dependent on physical methods like fireproof metal plates and Shamir Backup opt for these methods instead of handing over private key security to online transfer systems.
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