Coinbase registers bitcoin payment and checkout system

Posted 17 August, 2018

US-based crypto exchange Coinbase has applied a patent application to the US Patent and Trademark Office. The company is striving to improve the security of bitcoin payments for goods and services. 

According to the patent application filed back in December 2017, Coinbase has developed a special payment portal to enable users to make payments directly from their bitcoin wallets. 

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

The released information explains that the new system called a key ceremony will create key shares, which in their turn, can be joined into a master key. The latter is encrypted by a password phrase. The operational master key is deleted after use.

The operational master key is used to encrypt user's private key as well as transaction signature.

In addition, the company has also mentioned a freeze logic, under which the transaction will be stopped if the administrator freezes the system.

The patent report reads:

"At any point in time after the master key is loaded, the system can be frozen (Step 20). The system can be unfrozen after it has been frozen (Step 22) using keys from the key ceremony (Step 10). The checkout process (Step 16) can be carried out when the system is frozen and when the system is unfrozen. The payment process (Step 18) can only be carried out when the system is unfrozen and not when the system is frozen."

Earlier, it was reported the Coinbase put into operation Coinbase Wallet service.

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20 August, 2018 13:22

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