Secure Transfer of Private Keys

Tangem’s new technology allows private keys to be transferred securely even over a smartphone or an untrusted intermediate device. The patent is entitled “Systems and methods for transferring confidential data through an untrusted intermediate device”.

The technology allows users to make encrypted and secure backups without the need to manually store their private keys. Advanced cryptography techniques such as the Elliptic Curve Diffie-Hellman (ECDH) encryption protocol are used to securely exchange the private key between two trusted devices.

Why Tangem’s Private Key Backup Solution Matters

Self-custody allows users to manage their crypto assets without depending on third parties. However, the loss or theft of private keys is a common risk. The technology developed by Tangem allows users to enjoy the benefits of self-storage without directly storing their keys.

Main features of the technology:

• Seedless (Keywordless) Backup
• End-to-End Encryption
• Secure Transmission over Untrusted Intermediate Devices
• Tamper Resistant Authentication

This innovation allows users to securely store private keys without the need to manually note them down or depend on physical backup devices.

Criticisms of Private Key Backups

Private key backup systems have always been a controversial topic in the crypto community. Adopting the “if you don’t own your keys, you don’t own the coins” mentality, many investors argue that only they should keep their private keys.

For example, Ledger faced a huge backlash when it announced a cloud-based private key recovery system in 2023. Similarly, at the end of 2024, Tangem leaked some users’ private keys via email due to a security flaw. The company announced that this was due to a bug in their mobile app and that the issue had been fully fixed.

This criticism of private key backup has led some traders to still prefer traditional methods such as fire-resistant metal plates or Shamir Backup.

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