Ankush Kawanpure

Graduate Student
B. Thomas Golisano College of Computing and Information Sciences
Rochester Institute of Technology
Rochester NY

Design and Analysis of Wallets for Selected Cryptocurrencies

Abstract: Cryptocurrency wallets are the software which bridges the gap between user and cryptocurrencies; they store the necessary information to complete transactions. Cryptocurrency wallets have three goals to achieve: availability, security, and convenience. While designing a wallet, it is challenging to incorporate all the three goals. Simple device wallets prioritize convenience over availability and security, whereas hierarchical deterministic wallets prioritize security and availability over convenience. Also, storing cryptocurrency on a device connected to the network is a security risk. Hierarchical deterministic wallets use a known seed for parent and child key generation and use elliptic curve cryptography and mathematics to calculate the public addresses without revealing the private keys.

Hierarchical deterministic wallets help to decrease the risk of online storage and improve the security by just publishing the public keys and keeping private keys offline. Hierarchical deterministic wallets are becoming a standard for storing cryptocurrency, but the complex configuration and cryptography involved makes them often inconvenient. This work aims at making hierarchical deterministic wallets more convenient without compromising security