With the widespread adoption of cryptocurrencies, safeguarding private keys has become more important than ever. One significant contribution to this effort is a cryptographic standard that offers multi-share backup to secure seed phrases for digital wallets, one that offers superior security with no single point of failure.
At its core, it is a backup system based on Shamir's Secret Sharing (SSS) scheme, which is a cryptographic algorithm designed by Adi Shamir. This algorithm breaks a secret (in this case, a wallet's seed phrase or private key) into multiple parts or shares. These shares can be distributed across various individuals or locations and can be used to reconstruct the secret only when a predefined threshold of shares is gathered.
Multi-share backup removes the risk of a single point of failure.
Set the exact number of shares required for backup recovery.
Provides strong defense against threats and vulnerabilities.
Allocate backup shares across multiple locations or trusted individuals.
Easily transition from a single-share to multi-share backup system.
Adapts to evolving security needs, ensuring lasting protection.
Our backup systems is based on Shamir's Secret Sharing (SSS), a cryptographic algorithm that divides a secret (your seed phrase) into multiple shares. To recover the seed phrase, a user must gather a minimum number of these shares, as specified during the setup. The scheme adds security by requiring several pieces to reconstruct the original seed, making it more robust against loss or theft.
Traditional seed phrases are a single point of failure—if you lose or someone steals it, your entire wallet is compromised. Multi-share backup eliminates this risk by splitting the seed into multiple shares, which can be stored in different locations or given to trusted individuals. A minimum threshold of shares must be combined to reconstruct the seed, adding an extra layer of security.
The threshold scheme allows you to choose how many shares are needed to recover your seed phrase. For example, if you create 10 shares but set the threshold to 5, any 5 out of the 10 shares can be used to recover your wallet. This flexibility enables balance between redundancy and security.
As long as you have enough shares to meet the threshold you set during the backup creation, you can still recover your wallet. For example, if you created 10 shares and set the threshold at 5, losing 4 shares won't affect your ability to recover your wallet. However, losing more shares than the threshold would make recovery impossible.
Finrock customers gets access to a downloadable recovery software, wherein, you will specify how many shares you want to create and set a threshold for recovery. The software will then generate and split your seed phrase into the desired number of shares.
Yes, it is highly secure. Even if someone gains access to one or several individual shares, they cannot reconstruct your seed phrase unless they gather the minimum number of shares required by the threshold. Each individual share contains incomplete information, rendering it useless on its own.
Shares should be stored securely in different locations to minimize the risk of loss. You can distribute shares across safe deposit boxes, trusted individuals, or different physical locations. It's important that no single entity has enough shares to recover your wallet without your permission.
Yes, the system is designed to adapt to evolving security needs. As your security requirements change or grow, you can adjust the number of shares or recovery threshold to ensure long-term protection.
The recovery threshold is crucial for wallet restoration, so it's important to remember or document it securely. If forgotten, you will not be able to recover your wallet unless you recall the correct threshold value or are able to access enough shares that match the threshold you initially set.