Dealing with private key loss or compromise in digital identity systems
If an identity is tied to a single persistent private key, then loss or compromise of the private key will mean total loss of the identity. Since key compromise and/or loss do happen there needs to be a way to recover from this in order to have a persistent digital identity. See here for definitions used.
Key revocation and rotation
If the user of the identity suspects that a key is or may be compromised the user can rotate their key by submitting a new key to the system, signed by the old key. After this the old key can be revoked. An example of how key revocation can work in Ethereum is here.
To deal with the case where a user completely loses control of the key
a multisig system can be put in place where the user preemptively
N "delegate" identities that are empowered to allow the key
of the identity to be changed if
N delegates provide their
signatures. An example of this kind of key reset mechanism is
Timeouts and dealing with takeover attempts
In the previous example of a decentralized key reset procedure a timeout was introduced where the original key can stop a key rotation from taking place using a timeout. There can be a contest period where the old key can stop the key rotation if the key rotation was initiated by an attacker that had been able to access the old key.
- What are good timeout procedures to balance ease of key rotation with protection from attackers?
- How to deal with UI/UX challenges of decentralized key recovery procedures?