Coinbase Wins Patent to Secure Bitcoin Payment System

Coinbase files patent to protect the bitcoin payments and make it more secure for customers. The patent also includes an API key allowing other firms to design more such payment networks.

Coinbase, the leading US cryptocurrency exchange has played its new move towards offering the securest environment for cryptocurrency trading. However, the company wins in retrieving a patent which is a lifeline to protect the funds including bitcoin as a mean of payment.

This U.S Patent was available on 14th August, in which the patent states that, “a key ceremony application establishes the bundles for custodians encrypted with their passphrases,” and that each bundle will contain a master key. The master keys will then be a combination of the “operational master key”. However, this combinational key will be incorporated into “signing transactions” at checkout by utilizing private key decryption.

It seems that an API key will play an essential part, a computer program generated code to recognize the calling program, users, etc. This might vary across distinct websites with respective platforms. As API keys will be stored in two different locations, one of the host server and second in a Coinbase backing structure. However, to carry on with a transaction, regardless of the two locations, keys need to be identical.

More emphasis will be given to the notion of freezing/unfreezing accounts. This was said while quoting:

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. However, 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 all this is just a small portion of what the patent explains about. However, it is clear that the endeavor of Coinbase is working on to add a security factor. This can potentially boost the confidence of customers to use their crypto holdings for online purchases.

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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