The patented technology enables seamless private key transfers through untrusted intermediaries while maintaining top-tier security protocols.
Users can now create backup authentication devices instead of managing private keys directly, revolutionizing crypto asset self-custody.
Despite past controversies in key backup solutions, Tangem’s patent marks a significant step toward broader cryptocurrency adoption.
The United States Patent and Trademark Office (USPTO) has finally looked in the direction of Tangem by issuing a patent for its private key backup technology. This patent grant decision, which came on Tuesday, January 28, follows after the USPTO realized Tangem’s innovative method for securely transferring private keys through untrusted devices.
A New Way to Protect Crypto Keys Without Direct Handling
The , titled “Systems and methods for transferring secret data via an untrusted intermediary device,” aims at addressing security in new ways. Precisely, in ways that help users to avoid the stress of having to keep private keys or seed phrases.
This is because the backup technology makes it such that it allows secure private key transfers between Tangem’s hardware wallets and other devices such as smartphones.
Interestingly, while this makes for a more user-friendly solution, the technology also continues to maintain the highest standards of security possible.
For what it’s worth, self custody comes with its fair share of risks. That is, despite its huge benefits. Though it allows users to have full control over their crypto assets as they are able to hold them away from third-party, private keys can be stolen or, in some cases, even lost.
Now, this is where the now-patented backup technology of Tangem comes in. So, instead of having to deal with the private key directly, users may just create backup authentication devices.
Notably, the new tech also comes with some exclusive features, including a seedless backup process and trustless intermediary transfer, among others. This implies that Tangem’s backup tech may transmit the private key as secret data between two trusted devices, such as a Tangem card or a wearable . These devices can then transfer keys via an untrusted intermediary, like a smartphone, without any security risk.
Speaking about this security system, Tangem’s Chief Technology Officer Andrey Lazutkin suggested that its tech does not really care what type of device is being used as an intermediary. The executive also boasted about the encryption of the keys, claiming that they could not be intercepted.
Past Controversies in Private Key Backup
Strangely enough, private key backup is a solution that has failed to appeal to many in the crypto community. This is despite the huge benefits it offers.
In 2023, hardware wallet provider Ledger, was bashed after it introduced a cloud-based private key recovery system. To many community members, the innovation was a potential security risk.
Tangem itself came under fire in 2024 when a security issue with its mobile app led it to accidentally expose some users’ private keys via email. The company acknowledged the issue and resolved it quickly.
To date, entrusting a private key to any entity other than the owner remains a topical issue within the crypto community. However, Tangem would hold on to the promises of private keys transfer and hope that by securing a US patent, it can help overall crypto adoption.
