Coinbase Wins Bitcoin Payment Patent for Secure Checkout with Crypto Wallet
Coinbase Earns Patent to Ensure Bitcoin Payments Don’t Compromise Security
Cryptocurrency exchange, Coinbase, has filed and since succeeded in retrieving a patent that safeguards consumers who wish to use bitcoin as a mean of payment. The U.S Patent has been made available on Tuesday, August 14, in which it seems that “a key ceremony” will help to ensure that one’s security is not compromised in said transactions.
To put things into a simpler context, the patent noted that, “a key ceremony application creates bundles for custodians encrypted with their passphrases,” adding that each supposed bundle will have a master key. Next, the master keys will be combined into one “operational master key”, which will be used to “sign transactions” at checkout using private key decryption.
It appears that an API key will also be essential – a code passed by computer programs to identify users, calling program, etc. – and will vary across different websites and respective platforms. As for storage, API keys, will be stored in two locations, that of the host server and the remaining, in a Coinbase-backed structure. In order to move forward with a transaction, regardless of the split among the two locations, the keys must be identical.
More emphasis was placed on the notion of freezing and unfreezing accounts, which was quoted as per the patent as going along the lines of:
“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.”
While this is just a portion of what the patent elaborates on, it is clear that Coinbase’s endeavor has added yet another security factor, which can potentially heighten customers’ confidence in using their bitcoin or crypto holdings for online purchases.