Model of a Distributed Storage System for Crypto Wallet Private Keys

Abstract

With the development of Web3 technologies, the third generation of the Internet has become one of the most promising areas. It involves the use of decentralized, transparent, and user-oriented applications. However, many Web3 projects do not pay sufficient attention to security, which can lead to serious consequences. Even a small error in the code can make the system vulnerable, opening access to attackers. As a result, the industry faces frequent security breaches that threaten users and undermine trust in new technologies. One of the main problems with Web3 is private key management. This is a critical security aspect that is directly related to the protection of digital assets and users' personal information. The risk of losing or theft of a private key can lead to irreparable consequences, since in the case of loss there is no way to restore or reset the key. Various ways of storing the private key of a crypto wallet to ensure security are discussed. For example, the key can be split into parts and stored encrypted on hardware media, or the entire encrypted key can be stored on secure media. Quantitative data are calculated using Shamir’s scheme.