Self-custodial cryptocurrency wallet provider Tangem has been granted a United States patent for its innovative private key backup technology to enhance security and usability for crypto users.
The United States Patent and Trademark Office (USPTO) issued the patent on January 28, covering Tangem’s proprietary method for transferring private keys via an untrusted intermediary device. This technology is designed to address self-custody challenges by enabling secure private key transfers between Tangem’s hardware wallet and other devices, such as smartphones.
Self-custody enables users to manage their cryptocurrency assets independently, but key theft or loss risks hinder widespread adoption. Tangem’s new patented technology addresses these risks with a seedless backup process, end-to-end encryption, trustless intermediary transfers, and tamper-proof authentication. It uses 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.
According to Tangem’s Chief Technology Officer, Andrey Lazutkin, the company’s solution ensures that private keys remain secure even if transferred through potentially compromised devices.
“The main thing is that the key will be encrypted and goes to another card even through an untrusted device […] No one in the middle can intercept these keys.”
Lazutkin told Cointelegraph.
Tangem has also encountered security challenges in the past. In late 2024, the company was scrutinised after a critical vulnerability in its mobile app exposed certain users’ private keys via email. Tangem later acknowledged and resolved the issue, attributing it to a bug in the app’s log processing system.
While private key backup solutions aim to improve user experience, they have often faced skepticism and backlash from the crypto community. In 2023, hardware wallet provider Ledger introduced a cloud-based private key recovery system, sparking concerns about centralized control and security risks. Despite the controversy, Ledger proceeded with its rollout.
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