Tangem, a self-custodial cryptocurrency wallet provider, has secured a US patent for unique private key backup technology, marking a significant milestone. On January 28, 2025, the United States Patent and Trademark Office (USPTO) issued the patent, recognizing Tangem’s advances in securely passing private keys between devices without requiring direct user interaction.
The patented invention, dubbed “Systems and Methods for Transferring Secret Data via an Untrusted Intermediary Device,” aims to improve the security and usability of self-custodial wallets. It allows private key exchanges between Tangem’s hardware wallets and other devices, such as cellphones, using an encrypted and tamper-proof protocol. Tangem uses cryptographic techniques such as Elliptic Curve Diffie-Hellman (ECDH) to ensure that private keys stay secure during the transfer process, even if the intermediary device is compromised.
This is a safer approach to self-custody.
Self-custody provides consumers with complete control over their cryptocurrency assets by maintaining private keys independently of third parties. However, there are disadvantages to this technique, such as the potential loss or theft of private keys, which can result in permanent asset loss. Tangem’s proprietary backup technology tackles these problems by allowing customers to construct authentication backup devices, which eliminates the need to handle private keys manually.
This system has the following key features:
The seedless backup process eliminates the requirement for users to maintain or manage complex seed phrases.
End-to-End Encryption: Provides utmost security during key transfer.
Trustless Intermediary Transfer: You can send private keys through untrusted devices without exposing them.
Tamper-Proof Authentication: This prevents unwanted access to sent keys
Tangem’s technology enables the secure transmission of private keys between two trusted devices, such as Tangem cards or rings, via an untrusted intermediate, such as a smartphone. This implies that the encryption safeguards the private keys from third parties, even in the event of a compromised intermediary device
Challenges and industry skepticism
Despite its potential, private key backup technology has drawn criticism from the crypto community. Many enthusiasts adhere to the principle of “Not your keys, not your coins,” preferring physical backups such as fireproof metal plates or Shamir Backup methods instead of digital key storage.
While debates around private key backups continue, Tangemâ€TMs new patent marks a crucial step toward enhancing the safety and accessibility of self-custodial wallets. By securing this patent, Tangem aims to provide users with a more secure and user-friendly way to manage their digital assets, potentially driving broader adoption of cryptocurrency self-custody solutions.
