Method, apparatus, and computer-readable medium for authentication and authorization of networked data transactions
One of the drawbacks of Distributed Ledger Technology (DLT) is the conflation of authorization and authentication of transactions on a distributed ledger. The present invention includes a highly adaptable method and system for separating, but cryptographically linking, the authentication and authorization process of signing a transaction of a distributed ledger. The present invention facilitates group authority, common in corporate structures, for proposed transactions, voting models, and even workflow decision making. The present invention supports implementation of a variety of known authorization models into a decentralized network.
1 . A method for separating authentication and authorization of a transaction on a Distributed Ledger Technology (DLT) comprising:
an actor initiating a transaction on the DLT to exercise the authority of an entity;
authenticating the actor;
creating an access token including a cryptographic component needed to sign the transaction on the DLT, symmetrically encrypting the access token with a shared key, fragmenting the shared key to produce a plurality of key fragments, and disseminating the plurality of key fragments throughout an authority structure of the entity;
the actor acquiring the plurality of key fragments from the entity's authority structure;
assembling the shared key with the plurality of key fragments;
decrypting the access token with the shared key;
verifying a right of the actor to execute the transaction on behalf of the entity evidenced by the decrypted access token;
executing the transaction on the DLT through a signed transaction using the cryptographic component of the access token; and
publishing the transaction to the DLT.
2 . The method of claim 1 , wherein verifying the actor's right to execute the transaction on behalf of the entity includes using secure Multi-Party Computation (MPC).
3 . The method of claim 1 , wherein verifying the actor's right to execute the transaction on behalf of the entity includes using a multiple signature (multisig) wallet two of X or three of X signing standard.
4 . The method of claim 1 , wherein the signed transaction provides traceability as to the actor exercising the authority of the entity, the context of the transaction, and/or how the authority was obtained.
5 . The method of claim 1 , wherein the decrypting the access key requires production of the key fragments in a predetermined order representative of the entity's authority structure.
6 . The method of claim 1 , wherein the transaction originates from a digital wallet associated with the entity.
7 . The method of claim 6 , wherein the digital wallet associated with the entity is a vault wallet, group wallet, and/or Multiple Signature (multisig) wallet.
8 . The method of claim 1 , wherein the access token is an off-chain cryptographically signed data packet.
9 . The method of claim 1 , wherein the access token includes an expiration date, expiring the operability of the access token after a predetermined time.
10 . The method of claim 1 , wherein the actor is authenticated by presenting a public key and a private key of a digital wallet associated with the entity.
11 . The method of claim 1 , wherein the actor is a Non-Person Entity (NPE) associated with a trigger that specifies an event to initiate the transaction.