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Crypto-wallets or digital asset wallets are a crucial aspect of managingcryptocurrencies and other digital assets such as NFTs. However, these walletsare not immune to security threats, particularly from the growing risk ofquantum computing. The use of traditional public-key cryptography systems indigital asset wallets makes them vulnerable to attacks from quantum computers,which may increase in the future. Moreover, current digital wallets requireusers to keep track of seed-phrases, which can be challenging and lead toadditional security risks. To overcome these challenges, a new algorithm isproposed that uses post-quantum cryptography (PQC) and zero-knowledge proof(ZKP) to enhance the security of digital asset wallets. The research focuses onthe use of the Lattice-based Threshold Secret Sharing Scheme (LTSSS), KyberAlgorithm for key generation and ZKP for wallet unlocking, providing a moresecure and user-friendly alternative to seed-phrase, brain and multi-sigprotocol wallets. This algorithm also includes several innovative securityfeatures such as recovery of wallets in case of downtime of the server, and theability to rekey the private key associated with a specific username-passwordcombination, offering improved security and usability. The incorporation of PQCand ZKP provides a robust and comprehensive framework for securing digitalassets in the present and future. This research aims to address the securitychallenges faced by digital asset wallets and proposes practical solutions toensure their safety in the era of quantum computing.

Reinforcing Security and Usability of Crypto-Wallet with Post-Quantum Cryptography and Zero-Knowledge Proof