A major benefit of using cryptocurrencies is the security gained through the use of public key cryptography. Most cryptocurrencies use a database storage file called a ‘wallet.dat’ that keeps a record of all the keys that have been / will be used to access funds.
Blockchain technology will always be limited if relying on such a model, due to the inconvenience of having to make regular wallet backups, loss or theft of hard drives, and the risk of sending funds to unspendable addresses. These systems are susceptible to human error, boding for the need for complex hardware designed specifically to store private keys securely. Though these devices are a step towards user friendliness, they are still at risk of being lost or stolen, and therefore are not a reliable replacement for authorization systems.
Therefore, we developed an automated key management system using a technology called Signature Chains. This technology still uses public key cryptography, but rather than maintaining the keys on disk or the cloud, they are stored in ‘mathematical hyperspace’. This is an entirely new innovation which no other cryptocurrency provides.
You are able to access your Nexus Wallet from any computer, anytime, by simply downloading the application and logging in.
You no longer have to store you keys. You can log in to the Nexus with a Username, Password and PIN.
The wallet has a password recovery system. We recommend you set up a 'recovery phrase’ (either 10, 20 or 100 words). The master seed phrase provides extra assurance, enabling you to recover your Nexus Account in the event that it is compromised, or if you forget your password.
Your PIN is requested every time a transaction is created, much like using a bank card or a Two-Factor Authentication (2FA).
The key pair to your wallet is changed with every transaction, and the public key is hidden until it is used. The result of this is a high security standard with support for multiple signature schemes such as FALCON.
Transactions are required to be claimed (signatures are required from both sender and receiver). The result is a two-step validation process which prevents users from losing funds if accidentally sent to non-existent accounts.
To prevent attacks on your account through methods such as keyloggers, our architecture is designed to support hardware password managers such as the Zamek Hardware Password Manager.
In the future, we envision the use of biometrics for the generation of usernames, or as a secondary secret that can be used to improve the security of a Signature Chain.