The Patent Presented by Coinbase Will Provide Protection in Bitcoin Transactions
The recently published patent of the company Coinbase is designed to provide protection in bitcoin-payments. In the document published by the company, the method of creating a payment service that allows users to make payments using bitcoin directly from their wallet is described in detail.
The patent states:
"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 proposed solution is described as follows. The system creates key domains that are integrated into the master key, encrypted using the user's code phrases. They can be publicly available and deleted after use. The master key is used to encrypt the private key during the verification process, as well as to sign transactions during the payment process. There is also a security measure that can automatically stop transactions if the administrator decides to suspend the system.
The patent states:
"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 notes that the system also includes an API key. This suggests that different websites have the ability to run their own version of this type of system. The API key consists of two parts. The first is specific to the host server, and the other is stored in the system that is offered by Coinbase. These two keys must match the transaction to add another level of security to the clients.