System and method for key recovery and verification in blockchain based networks

1. A method of verifying that an encrypted cryptographic private key associated with a blockchain based computer network can be decrypted, the method comprising:

encrypting, by at least one first computing device, at least a portion of a cryptographic key of the computer network with a recovery public key, wherein the encryption is carried out using an homomorphically additive encryption scheme;

sending, by the at least one first computing device, the encrypted at least a portion of the cryptographic key to at least one second computing device;

retrieving, by the at least one second computing device, the recovery public key from the at least one first computing device;

verifying, by the at least one second computing device, that the encrypted at least a portion of the cryptographic key is compatible to be decrypted by a recovery private key, based on the retrieved recovery public key and the corresponding public key of the at least a portion of the cryptographic key;

sending, by the at least one first computing device, the recovery private key to a recovery escrow service;

periodically sending, by the at least one first computing device, an arbitrary message to the recovery escrow service, wherein the recovery message is signed by the recovery private key;

publishing the signed arbitrary message in a public repository;

retrieving, by the at least one second computing device, the signed arbitrary message from the public repository;

verifying, by the at least one second computing device, that the encryption of the signed arbitrary message is compatible with the recovery public key; and

verifying, by the at least one second computing device, that the recovery escrow service has the recovery private key.

2. The method of claim 1 wherein the recovery escrow service stores the recovery private key, and wherein instructions to publish the recovery private key are provided by a third party.

3. The method of claim 2 , further comprising periodically publishing, by the third party, a status report of the at least one first computing device in a public repository to be retrieved by the at least one second computing device.

4. The method of claim 1 , wherein the recovery escrow service is on an external computing device.

5. The method of claim 1 , wherein the at least one second computing device comprises a mobile computing device.

6. The method of claim 1 , further comprising:

connecting the at least one second computing device to the computer network; and

adding a transaction to a ledger of the computer network, in accordance with the received signed at least a portion of the cryptographic key.

7. The method of claim 1 , wherein the encryption is carried out using a verifiable homomorphic EIGamal encryption.

8. A system for verification that a cryptographic key associated with a blockchain based computer network can be decrypted, the system comprising:

at least one first computing device, configured to:

encrypt at least a portion of a cryptographic key of the computer network with a recovery public key, wherein the encryption is carried out using an homomorphically additive encryption scheme;

at least one second computing device, in communication with the at least one first computing device, and configured to:

receive the encrypted at least a portion of the cryptographic key from the at least one first computing device;

retrieve a recovery public key from the at least one first computing device; and

verify that the encrypted at least a portion of the cryptographic key is compatible to be decrypted by the recovery private key, based on the retrieved recovery public key and the corresponding public key of the at least a portion of the cryptographic key, wherein:

the at least one first computing device is further configured to send the recovery private key to a recovery escrow service and to periodically send an arbitrary message to a recovery escrow service, wherein the arbitrary message is signed by the recovery private key;

the recovery escrow service is further configured to publish the signed arbitrary message in a public repository; and

the at least one first computing device is further configured to:

retrieve the signed arbitrary message from the public repository;

verify that the encryption of the signed arbitrary message is compatible with the recovery public key; and

verify that the recovery escrow service has the recovery private key.

9. The system of claim 8 , wherein the recovery escrow service stores the recovery private key, and wherein instructions to publish the recovery private key are provided by a third party.

10. The system of claim 9 , wherein a status report of the at least one first computing device in a public repository is periodically published by the third party.

11. The system of claim 8 , wherein the recovery escrow service is on an external computing device.

12. The system of claim 8 , wherein the at least one second computing device comprises a mobile computing device.

13. The system of claim 8 , wherein the at least one second computing device is connected to the computer network, and wherein a transaction is added to a ledger of the computer network, in accordance with the received signed at least a portion of the cryptographic key.