The Encrypt existing Key Recovery Service (KRS) is a method of encrypting a private key for the NEM blockchain which can be recovered if you lose your key. The method utilizes a combination of a random seed + personally identifiable information.
NEM
Encrypt exisiting Key Recovery Service
The recovery of keys is a big challenge in all cryptocurrencies. One of the main concerns for many people using cryptocurrencies is security of their funds. This is not an easy task for most people, because we are used to centralized organizations taking care of security and supporting us when we have forgotten our password. In crypto-land our funds are forever lost if we loses our keys or in some cases third party services have scammed people, stealing all their crypto coins. This is why a Key Recovery Service (KRS) is highly relevant for adoption of a cryptocurrency such as NEM. This KRS idea comprises that the user uses the KRS service to generate or encrypt a private key. The key is generated based on a random seed + personal identifiable information. Furthermore, a unique webhook is generated – this can be stored without high security (e.g. in email or notes) because the webhook can only be activated to restore the keys in combination with the personal identifiable information (which is only known to the user). The user can choose which personal identifiable information he wishes to identify him, for example could this information be the title of his favorite book in combination with his passport number and his credit card number. Information which is only known to the user creating the keys. The KRS service is all browser based which is important for security because no information is leaving the users own computer. Subsequently, the users new private key is calculated and can be imported into the users wallet. Furthermore, a unique link is created which the user can store in a non-secure manner, and can be activated for a recovery of his key.