A Blockchain Wallet Scheme with Multi-Factor Authentication Based on Distributed System

Blockchain wallet is a technology focusing on generating, storing and utilizing private keys to manage digital assets securely. As a service, blockchain wallets require user authentication. Traditional blockchain wallets employ mnemonic phrases to assist users in storing and managing private keys.

However, the complex operation procedures and the totally different identity authentication mechanism of traditional wallets undoubtedly hinder their development. What's worse, it's inconvenient for secure storage, and doesn't support account recovery, which affects the security and usability of traditional wallets. To address this issue, this paper provides a solution for identity authentication and private key management of blockchain digital wallets in distributed scenarios.

It proposes an architecture for building a distributed multi-factor authentication digital wallet for blockchain. We design and implement this blockchain digital wallet based on a distributed multi-factor authentication system. By employing a secret sharing scheme, the encrypted private key shares are stored on distributed servers.

When a user wants to use his private key, the wallet conducts a private key recovery operation, which significantly reducing the risk of storing the private key locally. This mitigates security issues such as single-point failure and weak password attacks. What's more, Users are only required to operate the hardware token once during the authentication and private key recovery operation, ensuring the balance between the security and usability of blockchain digital wallets.