Biometric-Based Recovery Mechanism for Blockchain-Based Wallet

Cryptocurrency wallets are software applications that enables users to manage and access Blockchain-based assets, relying on private keys for authentication. In non-custodial wallets, the user has full responsibility for safeguarding the key; if compromised, asset recovery is typically impossible. Device-based biometric authentication can secure a wallet locally on a device from unauthorized access, but it does not stop access from a new device if an attacker obtains the seed phrase.

This paper addresses this essential limitation by proposing a user-centric, biometric-based remote authentication mechanism that supports cross-device access by storing a user’s biometrics in their account. The system leverages two layers of biometric template protection (BTP) methods to secure biometric data and preserve its privacy and employs off-chain storage via the InterPlanetary File System (IPFS) to reduce on-chain costs. By integrating biometrics as a second authentication factor, the proposed framework mitigates the risks associated with seed phrase compromise, thereby ensuring both security and data privacy in non-custodial wallets.