Private keys continue to be a challenging aspect in the management of cryptocurrency self-custody. Access to the funds will have been permanently lost if the private key is either misplaced or exposed. Crypto hardware wallet company Tangem recently won a US patent for new private key backup and transfer technology that focuses on increased security and ease of use.
Tangem’s Patented Technology
The United States Patent and Trademark Office granted the patent by Tangem for “Systems and methods for transferring secret data via an untrusted intermediary device,” on January 28. It enables the safe transfer of private keys between devices without exposing them to risks. Users do not need to handle private keys or seed phrases; instead, encrypted keys can be transferred between Tangem hardware wallets through an intermediary device, such as a smartphone. The process uses Elliptic Curve Diffie-Hellman encryption, so it is secure even if the middle device is compromised.
👀 ICYMI: @Tangem Secures🇺🇸US Patent for Seedless Crypto Wallet Backup Technology
— WARANDCOIN (@Warandcoin) February 6, 2025
The patented system enables secure key transfers directly between hardware wallets, eliminating the need for an intermediary and solving a significant challenge in self-custody of cryptocurrencies. pic.twitter.com/WAaWMi2pjo
How It Works and Key Benefits
Unlike traditional wallets requiring seed phrases, Tangem’s technology offers a seedless backup process that simplifies private key management.By protecting keys during transfers using end-to-end encryption, it does away with the need to have faith in middle-man devices. An additional degree of protection is provided by tamper-proof authentication, which guarantees that the sent key can only be accessed by authorised devices.
The Significance of This
Self-custody will enable consumers to fully manage their digital possessions.However, risks such as the loss or theft of a private key make this challenging. What Tangem innovates makes self-custody more accessible to people while diminishing risks in handling private keys that help propel broad adoption of safe crypto storage solutions.
Challenges and Concerns
That’s where Tangem’s technology improves its usability while, however, leaving remaining in the crypto community skeptical.The “Not your keys, not your coins” slogan represents concerns about third-party control over private keys. Ledger was criticized in 2023 when it suggested a cloud-based key recovery plan. Tangem was criticized late in 2024 due to a security weakness in its mobile application, which allowed private keys of some users to leak over email. The company quickly resolved the issue.
Tangem’s patented technology is one step forward in self-custody, which does away with seed phrases and enables encrypted key transfers. Even though the innovation enhances security and usability, the user should be careful in the selection of a key management solution. As the self-custody solutions develop, transparency and security will become critical to the trust of the community.
