Coinbase Wins Patent for Secure Bitcoin Payments System

17 August, 2018

A newly published Coinbase patent seeks to protect a way of making bitcoin purchases more secure for customers.

In the filing, published August 14, the U.S.-based cryptocurrency exchange outlined how it could develop a payment portal which would allow users to pay using bitcoin directly from their digital wallet.

"It may be a security concern for users that the private keys of their bitcoin addresses may be stolen from their wallets," the patent stated. "Existing systems do not provide a solution for maintaining security over private keys while still allowing the users to checkout on a merchant page and making payments using their wallets."

The system as described sets up a "key ceremony" that creates key shares that are combined into an operational master key – encrypted with the users' passphrases – that can be made publicly available and deleted after use.

The operational master key is used for private key encryption during checkout, as well as for transaction signing when a payment is made.

What the filing calls "freeze logic" is also employed in the process, a security measure that automatically halts transactions if an administrator chooses to suspend the system.

The patent explains:

"At any point in time after the master key is loaded, the system can be frozen. The system can be unfrozen after it has been frozen using keys from the key ceremony. The checkout process can be carried out when the system is frozen and when the system is unfrozen. The payment process can only be carried out when the system is unfrozen."

The patent goes on to note that the system also includes an API key, meaning different websites would be able to launch their own version of the portal.

The API key would have two parts: one would be specific to the host server, while the other would be stored on the system developed by Coinbase. The two keys would have to match for a transaction to go through, adding another layer of security for customers.


Source link   Crypto currency: Bitcoin


Investing Tips For Crypto Bear Markets

Investing in cryptocurrencies can be overwhelming and difficult, especially during periods when a bear market controls the prices. To deal with it, let's discuss...

Block Show Asia 2018 report

Singapore has welcomed guests for another important crypto-event. The exhibition Block Show Asia 2018 brought numerous business contacts for LH-Crypto. The company presented new products...

Bitcoin is 43% More Profitable to Mine

When Craig Wright formed an alliance with CoinGeek founder Calvin Ayre to launch a hostile takeover of the Bitcoin Cash (BCH) network, the two men predicted that their BCH...

FIBO Group increases leverage for cryptos

FIBO Group is glad to announce that the 3rd of December 2018, the leverage for all the tradable cryptocurrencies shall be increased to 1:10. The new leverage shall allow you to...


Second Largest Drop of Bitcoin Mining

The crypto market's prolonged decline has finally begun to manifest in the bitcoin mining industry, which had at times seemed impervious to falling prices but is now...

Long Time to Reach All-Time High Again

Throughout the past eleven months, the Bitcoin price has dropped from $19,500 to $3,000, by nearly 85 percent. The dominant cryptocurrency fell by 85 percent on average...

Bitcoin is a bubble but appropriate for foreign missions

Russian Economic Development Minister Maksim Oreshkin has stated that while bitcoin has deflated like a soap bubble, it has impacted the world...

Crypto Market Loses $6 Billion

More than $6 billion was wiped out of the cryptocurrency market as Bitcoin (BTC), the most dominant cryptocurrency in the market, recorded a loss of 8.6 percent from $4,500 to $4,110. On fiat-to...