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Fortifying Seed Phrases with Splitcoin

Updated: Mar 2

"Most people are not able to back up their security keys; they will lose the device... They will not have the proper encryption for their backup; they will write it on a piece of paper, someone else will see it, and they will steal those funds."

-Changpeng Zhao, CEO of Binance

Reinventing Seed Phrase Security with Splitcoin

In the realm of cryptocurrency, safeguarding one's digital assets is paramount. Changpeng Zhao, CEO of Binance starkly outlines a significant issue. He highlights a critical flaw in how seed phrases are managed when users decide to self-custody their assets. In response to this problem, there are various solutions being introduced to replace the seed phrase. However, there are millions of users out there with seed phrases that don't want to lean in and trust new cryptographic protocols with their keys. Especially when some of these new solutions make assurances of "multiple parties" and "trusted law firms". Seed phrases work, but we need to fortify their storage. Enter Splitcoin, a revolutionary system designed not to replace the seed phrase but to substantially enhance its security through a unique encryption process.

Understanding the Innovation Behind Splitcoin

At its core, Splitcoin utilizes the proprietary SPLIT39 protocol, a groundbreaking method that fundamentally transforms how seed phrases are encrypted and stored. Unlike traditional practices that rely on a single layer of security, Splitcoin introduces a multi-faceted approach:

  1. Secret Key Splitting: Through SPLIT39, Splitcoin splits a secret key, termed the vault key, across multiple physical devices known as Splitcoins. This dispersion of the key adds a strong layer of physical security, mitigating the risk of total loss from theft.

  2. Manual Encryption: Utilizing the vault key, Splitcoin generates an auto-scrolling codebook within its mobile application. This codebook allows users to manually encrypt their seed phrases securely. Each page of the codebook acts as an independent cipher to securely encrypt the key.

  3. Your Seed Phrase, Not Ours: By enabling manual encryption of seed phrases, Splitcoin ensures that your seed phrase will never be digitally stored or entered into our app. The Splitcoin app doesn't want to know it and will never ask for it. It will never touch your seed phrase. This process not only secures the seed phrase from digital threats but also empowers users with a tangible means of recovery. It gives them confidence to protect their seed phrase, because they don't share any aspect of their private key with our technology!

The Splitcoin Advantage: Security, Simplicity, Sovereignty

Splitcoin's architecture addresses the vulnerabilities highlighted by Zhao, offering a solution that is both innovative and intuitive. Here is how Splitcoin stands out:

  • Distributed Security: By encrypting the vault key across multiple Splitcoins, the system ensures that the exposure or compromise of a single coin does not jeopardize the overall effectiveness of the encryption. Each coin contains an encrypted 640-bit key required to access your codebook for manual encryption.

  • User Empowerment: Splitcoin places control firmly in the hands of the user, requiring both physical possession of the Splitcoins and knowledge of the password to decrypt the encrypted seed phrase.

  • Simplicity and Accessibility: The manual encryption process, guided by the auto-scrolling codebook, is straightforward, eliminating the need for complex technological interactions or cryptographic understanding. Simply put, Splitcoin is a world-class UX for users of all technical abilities.

Looking Ahead: A New Paradigm for Crypto Security

Splitcoin's response to the challenges of seed phrase security is not just a technological solution but a paradigm shift in digital asset protection. It acknowledges the inherent risks in traditional methods and offers a fortified, user-centric alternative that is compatible with every existing crypto wallet on the market already. Why introduce more pain points to self-custody when we could just solve the current ones?

A Secure Future with Splitcoin

Splitcoin emerges as a solution to the critical issue of seed phrase security. There is no need to reinvent the wheel - or in this case, reinvent the seed phrases. Enhancing the traditional seed phrase system with a sophisticated encryption protocol, Splitcoin offers a solution that is secure, user-friendly, and resilient against both physical and digital threats. In doing so, Splitcoin not only addresses the vulnerabilities highlighted by Zhao but sets a new standard for crypto security. As we move forward, Splitcoin's novel approach serves as a testament to the power of innovation in securing our digital future.

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