UzumaKey

Recovery like a Shinobi - An Ultimate key recovery solution

Comment 12

About Project

1. Inspiration

A comprehensive solution for key management that will bring crypto to the mainstream. Memorizing 24-word seed phrases Hardware Wallet is really a big obstacle for a lot of people. A Ukrainian politician by the name of Davyd Arakhmia probably wants to throw himself off a bridge after deleting an encrypted file off his hard drive which contained his private key [1]. Stefan Thomas, a German engineer living in San Francisco, has forgotten the password to his encrypted hard drive, called IronKey, which holds the private key to 7,002 bitcoin [1]

It's a common crypto problem: Because people tend to forget the private keys that give them access to their crypto investments, countless coins — e.g. Bitcoin, Ethereum, Litecoin, Dogecoin, Solana — have been lost. As much as 20% of the entire supply of Bitcoin might be lost owing to lost private keys. Originstamp has provided an estimate that, until 2022, 4 million Bitcoins, or the equivalent of USD140 billion based on current pricing, had been irreversibly lost [2]. That is an incredible sum of money. Lost Bitcoins will, in the end, have a substantial adverse effect on the market and the price of cryptocurrencies in general.

2. Current Solutions

Hardware wallets still require paper backup, and bad guys can perform an attack on the supply chain, ie swapping counterfeit, chip-tracked goods for real hardware wallets that have been verified to guarantee safety. Password managers are more convenient; However, there are many users who set 1 password to be able to access everything and this makes the risk of theft greatly increased.

Social Recovery Wallet is a crypto wallet solution initiated by Ethereum founder Vitalik Buterin, combining the advantages of a personal wallet, single-signature (single-sig) and multi-sig wallet [3]. To do this, the project needs to add a relayer layer that sends back signed messages into valid transactions. This will reduce the inherent decentralization of a blockchain project and will also increase transaction fees for users. Having a couple of friends in our institutions co-own a key is a very good solution but how much do you trust your friends and family to keep your keys secure and not colluded? The more people you add, the less trusted it becomes.

3. UzumaKey Solution

We aim for a recovery private key solution where users don't have to worry about trust (trustless recovery). The unique idea behind this whole community recovery system is to laser focus on the main attack vector for recovery by using the blockchain to link the ID info (identity card, driver's license,...) with the user account and using the assistance of a social recovery partner (guardians, they can be user's friends or Prestigious Dao voters) to validate identity. Users don't need to save their private keys and fear that they will be stolen one day. This idea was created to give users more choice in choosing who they can trust, and moreover, to allow them to use their power carefully, not let them do everything arbitrarily, because, according to Vitalik Buterin, the concept of Social Recovery Wallet does not go against the "trustless" meaning of blockchain and crypto.

4. How it works?

Private key lost flow

5. Features Features

6. Business Model Business Model

  • Customer Segments: Blockchain wallet users, cryptocurrency storage institutions, crypto brokers, professional crypto investors, businesses and institutions
  • Value Proposition: Provide a private key recovery software or service solution for blockchain wallets to help users restore ownership of digital assets.
  • Channels: Online advertising through media channels such as Facebook, Twitter, LinkedIn; blockchain events and seminars, relationships with blockchain communities, online support; Place banner ads at websites/blogs about blockchain.
  • Customer Relationships: Online support, detailed documentation, build trust and build relationships with customers. Build a community of guardians and users.
  • Revenue Streams: Fees for using private key recovery services, advertising or advanced features (premium).
  • Key Resources: Private key recovery software technologies, development and technical support team.
  • Cost structure: Product research and development costs: $20,000/year. System management and operation: 15,000 USD/year. Marketing and promoting products: 10,000 USD/year. Business and finance: About 5,000 USD/year. Other costs: 5,000 USD/year.
  • Key partners: Exchanges and application developers on Fantom. Investors and financial institutions are interested in blockchain and cryptocurrencies. Technical and product development partners.
  • Key activities: Research and develop private key recovery products for blockchain wallets on Fantom. Seek and develop relationships with partners in the blockchain industry. Create marketing strategies and reach potential customers. Product management and operation.

7. Financials Financial

  • Start-up costs: Total costs are about $50,000, including staffing, product development, marketing and logistics costs.
  • Revenue streams: Fees for using private key recovery services, advertising or advanced features (premium). For Fantom blockchain's private key recovery service, the average price per recovery can range from 0.3 to 0.5 FTM, depending on the complexity of the recovery process. Assuming about 200 recovery requests per month, the average monthly revenue could be between 60 and 100 FTM. Revenue is likely to grow over time as more users and demand increase.
  • Operating costs: Operating costs include financial costs, personnel and rent for the workplace. Assuming there are 200 recovery requests per month, the average monthly operating cost amount could be between 50 and 100 FTM.
  • Profit margins: Expected profit from 10% to 40% of total revenue. According to the above calculation, with an average monthly revenue of about 20 to 100 FTM and an average monthly operating cost of about 50 to 100 FTM, the average profit per month can be around 0 to 50 FTM. However, if the company can optimize operating costs, increase productivity and revenue, profits can go higher.

8. Marketing plans Marketing plan

Phase 1

  • Target audience: Blockchain wallet users, cryptocurrency storage institutions, crypto brokers, professional crypto investors, businesses and institutions
  • Unique selling proposition: The ultimate and comprehensive solution for "truthless" private keys, without taking significant time like other recovery services; provides high-security features, ensuring that customer information and assets are protected as best as possible.
  • Promotion strategy: Advertise online on social media channels (Facebook, Twitter,...), register for blockchain events and seminars, design websites and create content on blogs, update product information on blockchain information pages.
  • Distribution strategy: Looking for partners inside and outside the Fantom blockchain community to introduce products, create relationships with customers through online channels, support customers online and by phone; Building a community of recovery keys on social networking platforms.

9. What next? Roadmap

In Q1/2023, we have been completing MVP, developing our solutions and start researching marketing strategies. In the second quarter of 2023, we will launch a trial version on the web and app, start implementing a marketing plan and continue to develop the product based on customer feedback. In the next 4 months, our team will officially put the product on the App Store and GG Play, set up a Guardians community and search for sponsors for fundraising. We aim to the end of the year will be able to reach 9000 users and more than 1000 Guardians

10. About us About us

We are students from the University of Engineering and Technology in Vietnam who share a passion for blockchain and want to help the Fantom community grow. Thank you for your interest in our project.

11. References

[1] Ukrainian politician losses $25 million worth of Bitcoin after deleting private key - BTC Peer

[2]Paradise Lost: The 5 Biggest Bitcoin Private Key Horror Stories - Cool Wallet

[3] How Many Bitcoins Have Been Lost? - originstamp

[4]Social Recovery Wallet – Standard for an "optimal" crypto wallet - Coin98

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Updates

posted an update —

Uzumakey

*******New Features*******

  1. You can provide a security question-based recovery method for the user to choose from. ⇒ This is a possible idea that can help your project increase security.
  2. add biometrics or a virtual meeting integrated in the app ⇒ for more security
  3. You can use some advanced encryption algorithms like AES-256 and SHA-512 to encrypt your data ⇒ and increase the security of your system.
  4. implement multi-language support: ⇒ Cryptocurrency is a global phenomenon, and users from all over the world may need to recover their private keys or smart contracts. Implementing multi-language support for your recovery products can help you reach a wider audience and provide better service to non-English speaking users.
  5. allow the user to optionally tip guardians. Another improvement is that if you refer guardians or refer a certain amount of successful recoveries, you will get a discount or an account upgrade.
  6. Roles: Consider offering customized recovery solutions for different types of users, such as high net worth individuals or businesses with specific security requirements.

*******************Future Work*******************

  1. What about integrate with hardware wallets? ⇒ Hardware wallets are becoming increasingly popular among crypto users as a way to secure their funds. Integrating with hardware wallets such as Ledger or Trezor could be a valuable addition to your recovery products.
  2. Explore the possibility of integrating your recovery services into existing blockchain products and services, such as hardware wallets or decentralized exchanges.
  3. Develop additional features: Consider adding additional features to your product, such as multi-signature wallets or decentralized identity management solutions, to attract new customers and increase retention among existing users.
  4. project can be expanded into a service providing recovery solutions, not just encapsulated in a software application. ⇒ Long way to go but keep your passion and hardwork.
  5. Continuously monitor and analyze market trends and user feedback to stay ahead of the competition and make necessary improvements to your products and services.

Pros

  • offering your services to institutional investors and large companies that hold large amounts of cryptocurrency and need a secure and reliable recovery solution.
  • I suggest developing partnerships with other blockchain projects and service providers: By collaborating with other blockchain projects and service providers, you can expand your customer base and offer more comprehensive recovery services.

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posted an update —

Uzumakey

*******New Features*******

  1. You can provide a security question-based recovery method for the user to choose from. ⇒ This is a possible idea that can help your project increase security.
  2. add biometrics or a virtual meeting integrated in the app ⇒ for more security
  3. You can use some advanced encryption algorithms like AES-256 and SHA-512 to encrypt your data ⇒ and increase the security of your system.
  4. implement multi-language support: ⇒ Cryptocurrency is a global phenomenon, and users from all over the world may need to recover their private keys or smart contracts. Implementing multi-language support for your recovery products can help you reach a wider audience and provide better service to non-English speaking users.
  5. allow the user to optionally tip guardians. Another improvement is that if you refer guardians or refer a certain amount of successful recoveries, you will get a discount or an account upgrade.
  6. Roles: Consider offering customized recovery solutions for different types of users, such as high net worth individuals or businesses with specific security requirements.

*******************Future Work*******************

  1. What about integrate with hardware wallets? ⇒ Hardware wallets are becoming increasingly popular among crypto users as a way to secure their funds. Integrating with hardware wallets such as Ledger or Trezor could be a valuable addition to your recovery products.
  2. Explore the possibility of integrating your recovery services into existing blockchain products and services, such as hardware wallets or decentralized exchanges.
  3. Develop additional features: Consider adding additional features to your product, such as multi-signature wallets or decentralized identity management solutions, to attract new customers and increase retention among existing users.
  4. project can be expanded into a service providing recovery solutions, not just encapsulated in a software application. ⇒ Long way to go but keep your passion and hardwork.
  5. Continuously monitor and analyze market trends and user feedback to stay ahead of the competition and make necessary improvements to your products and services.

Pros

  • offering your services to institutional investors and large companies that hold large amounts of cryptocurrency and need a secure and reliable recovery solution.
  • I suggest developing partnerships with other blockchain projects and service providers: By collaborating with other blockchain projects and service providers, you can expand your customer base and offer more comprehensive recovery services.

Log in or sign up for Devpost to join the conversation.

posted an update —

** Enhanced security **

In order to ensure that the user is a valid owner of the wallet, UzumaKey requires to provide more information to prove he/she is the owner. In the future, we will require more biometric identification fields (face, fingerprint), some questions that only the owner knows.

Recovery Phase

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posted an update —

User experiences

We have planned to design the user interface to be more user-friendly and highly personalized. The landing page will include the necessary information so that users can understand the information as soon as they access the platform such as the product's use, features, steps, team info and some other information in the footer.

Landingpage1

Landingpage2

Please feel free to contribute suggestions and ideas to help develop UzumaKey. Thank you very much.

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