Distributed Key Derivation for Multi-Party Management of Blockchain Digital Assets

The current Single-User Key Derivation (SKD) caters to individual management of blockchain’s tree-structured assets but falls short for threshold signatures aimed at multi-party control of blockchain assets. We introduce a Distributed Key Derivation (DKD) for collaborative management of these assets. Our DKD aligns with SKD and the prevalent Decentralized Key Generation (DKG) in threshold signatures, employing the GG18 DKG [1] protocol to safely refresh child keys without affecting the parent key or other nodes. It maintains the hierarchical structure while preventing privilege escalation attacks. Experimental tests show that our DKD’s key derivation time is about 240 μs, minor compared to GG18’s DKG time.