Authentication is the first, crucial step in securing digital assets like cryptocurrencies and online services like banking. It relies on principals maintaining exclusive access to credentials like cryptographic signing keys, passwords, and physical devices.

A myriad of authentication mechanisms embody a continuous evolution from verbal passwords in ancient times to contemporary multi-factor authentication. Cryptocurrency wallets advanced froma single signing key to using a handful of well-kept credentials, and for online services, the infamous “security questions” were all but abandoned.

The security of cryptocurrency and decentralized blockchain-maintained assets relies on their owners safeguarding secrets, typically cryptographic keys. This applies equally to individuals keeping daily-spending amounts and to large asset management companies. Loss of keys and attackers gaining control of keys resulted in numerous losses of funds.