Cryptosat has joined forces with Dfns Labs, the research division of web3 wallet infrastructure and security firm Dfns, to develop and test a so-called “Space Wallet.”

The wallet, engineered to safeguard high-value transactions, utilizes an innovative threshold signature scheme with a satellite as a co-signer to thwart physical access-based attacks.

Threshold signature schemes distribute private key shares among multiple signers, all of whom must approve a transaction for it to be validated, which according to the company, reduces the risk of a single point of failure.

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However, a small risk remains for attackers to use advanced physical methods or administrative access to acquire the private key share stored by a signer.

Dfns’s Space Wallet aims to mitigate this risk by hosting one of the signers on a Cryptosat satellite in space, making such attacks virtually impossible, it added.

Cryptosat’s satellites are situated in low-Earth orbit, making them completely inaccessible to even the most well-funded, state-sponsored hackers.

The company further stated that it employs advanced monitoring techniques to detect any attempt to approach its satellites.

Transactions are conducted using a threshold signature scheme called Flexible Round-Optimized Schnorr Threshold Signatures (FROST), which is compatible with the Bitcoin (CRYPTO: BTC) blockchain, with additional blockchain support planned for the future.

Cryptosat’s satellites can also enforce additional security measures such as requiring confirmation if the transaction amount exceeds a certain value.

Dfns is "a great example of how we can leverage space as a perfect, physically-isolated environment for the level of security institutional wallet solutions require,” Cryptosat co-founder Yan Michalevsky said.

Jonathan Katz, Chief Scientist of Dfns, says threshold signature schemes "can be efficient enough to deploy in resource-constrained environments.” 

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Image by Arek Socha from Pixabay