A processor implemented method for generating a recovery key for a first device associated with a user and conditionally registering an identifier of the recovery key in a blockchain is provided. The method includes the steps of generating, using a first cryptographic processor on the first device associated with the user, a first set of credentials; generating a mnemonic sentence from pseudorandom data; applying a key derivation algorithm to generate the recovery key and conditionally registering an identifier of the recovery key for the first public key of the first device in a smart contract in the blockchain. The first set of credentials includes a first blockchain-compatible public-private key pair associated with the user. The first blockchain-compatible public-private key pair includes a first public key and a first private key. The first private key is restricted to the first cryptographic processor on the first device.