Assessing Signature Stability and Entropy-Dependent Key Derivation in Early Blockchain Wallet Protocols

Abstract

The robustness of digital signatures in early blockchain wallets is closely tied to the entropy used in key derivation. This study systematically evaluates the stability of elliptic curve signatures under varying entropy conditions during key generation in early cryptocurrency implementations. We highlight real-world vulnerabilities and propose an entropy-quality assessment framework, along with entropy-enhanced key derivation mechanisms. Simulations show that entropy-dependent variances can significantly affect signature reproducibility and integrity, with implications for wallet security and blockchain forensics. Our findings emphasize the necessity of integrating entropy validation during key generation and propose enhancements to entropy gathering techniques in resource-constrained or entropy-starved environments. The study also analyzes historical incidents where weak entropy led to exploitable signature malleability or private key exposure, particularly under the ECDSA scheme. Through experimental validation using both synthetic entropy profiles and real-world blockchain data, the proposed mechanisms demonstrate enhanced resistance to signature manipulation and unauthorized key recovery. This work contributes a critical security layer for legacy and emerging blockchain wallet protocols, ensuring cryptographic robustness in decentralized systems reliant on high-assurance key management.