Cryptocurrency wallet provider Tangem has been awarded a patent for its innovative private key backup technology designed to enhance user security and convenience.
Patent on New Technology
The United States Patent and Trademark Office (USPTO) granted a patent covering Tangem’s method for transferring private keys via an untrusted intermediary device. This technology addresses self-custody challenges by enabling secure private key transfers between Tangem’s hardware wallet and other devices, such as smartphones.
How the Technology Works
Self-custody allows users to manage assets independently, but key theft or loss risks present a barrier to widespread adoption. Tangem’s technology addresses these risks with a seedless backup process, end-to-end encryption, trustless intermediary transfers, and tamper-proof authentication. It employs Elliptic Curve Diffie-Hellman (ECDH) cryptography for secure private key exchange and allows users to transmit their private key between trusted Tangem devices through untrusted intermediaries like smartphones.
Industry Reaction and Impact
Tangem has also encountered security challenges in the past. In late 2024, the company was scrutinized after a vulnerability in its mobile app exposed certain users’ private keys via email. Tangem acknowledged and resolved the issue, attributing it to a bug in the app’s log processing system. In 2023, hardware wallet provider Ledger introduced a cloud-based private key recovery system, raising concerns about centralized control and security risks. Despite controversy, Ledger proceeded with its rollout.
Tangem's private key backup technology represents a significant step in addressing security and usability challenges for the crypto community. It highlights the importance of innovation in self-custody and could serve as a model for other companies in the industry.
