Abstract
Bitcoin is a peer-to-peer electronic cash system largely used for online financial transactions. It gained popularity due to its anonymity, privacy, and comparatively low transaction cost. Its wallet heavily relies on Elliptic Curve Digital Signature Algorithm (ECDSA). Weaknesses in such algorithms can significantly affect the safety and the security of bitcoin wallets. In this paper, a secure key management wallet was designed based on several changes in the wallet parts. In the cold wallet, we employed an image-based passphrase to achieve a strong entropy source of master seed. The hot wallet, the proposed key_ Gen algorithm is modifying to the key generation step of the ECDSA that it is to generate a fresh key pair at each transaction. The final part ensures recovering all keys on both hot and cold wallets without daily backups in case of losing the wallet. The findings prove that the proposed cold wallet is resisting against a dictionary attack and overcoming the memorizing problem. The proposed hot wallet model acquires good anonymity and privacy for bitcoin users by eliminating transaction likability without additional cost. The execution time for signing a transaction of the proposed model is~70 millisecond, which is then important in the bitcoin domain.
Highlights
The emergence of the internet and technology during the last decade largely contributed to the growth of the economy worldwide, from management of finance to how businesses abroad operate [1]
This paper aims to study the bitcoin system design and analyze its strengths and weaknesses with attention given to key management issues, enhancing the security of elliptic curve digital signature algorithm (ECDSA) through increasing the security space of key bits
This section is divided into three main parts; the first part deals with the proposed cold wallet model
Summary
The emergence of the internet and technology during the last decade largely contributed to the growth of the economy worldwide, from management of finance to how businesses abroad operate [1]. Technology had yet changed the financial world with a proposition of electronic currency which is becoming a more attractive system for banks, investors, and even developers [2, 3]. Such progress in methods of payments potentially decreased transaction costs, effort, and time, and further, laid the foundation for new forms of currencies, namely digital currency such as bitcoin cryptocurrencies. All cryptocurrencies share the same underlining principles of being decentralized digital currency [6, 7]
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