As the cryptocurrency market rapidly expands, managing private keys has become a critical concern for both investors and general users. Traditional crypto wallets are generally categorized into two types: non-custodial and custodial, each with its own advantages and disadvantages.
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Non-Custodial Wallets
These require users to manage their own private keys, providing full control over their assets. However, if the private key is lost or compromised, the assets may be permanently unrecoverable. Proper management demands a high level of knowledge and technical skill.
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Custodial Wallets
In this model, the service provider manages the private key, making it easier for beginners to get started. However, as the saying goes, “Not your keys, not your coins.” Entrusting key management to a third party inherently means granting them access to your assets, which introduces potential security risks.
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This creates a significant trade-off between security and usability, and users must carefully assess which wallet type best suits their needs.
To address the challenges described above, we developed an innovative system that eliminates the need for users to manage their private keys—without ever granting third parties access to user assets. This system leverages our proprietary international patent (Patent No. 2019-052099).
Patent Information: Electronic Allotment Type Storage Method and its Operation System
In this system, a private key is split into multiple fragments (known as shares) using advanced cryptographic techniques. These shares are then distributed and stored across multiple anonymous computing nodes. To reconstruct the private key, a threshold number of shares must be collected. The user can automatically retrieve the required shares through the system and securely restore their private key within the XENEA Wallet.
The following describes the entire process.