Coinbase’s New Patent to Protect Bitcoin Payment System
August 17, 2018 11:16 am
A few days back, Coinbase added British Pounds to its exchange. Mr. Zeeshan Feroz, Chief Executive, Coinbase U.K., wrote that this system would replace the previous method of converting cryptocurrencies to British Pounds. Coinbase has just announced a patent which wills secure Bitcoin payment system.
Coinbase explained how it is developing a payment portal. Through using this portal, users can pay using Bitcoin directly from their digital wallets. The exchange described that the users might be concerned about their private keys getting stolen from their wallets. The existing system will not provide any solution to manage the security of private keys. It allows the users to see a merchant page and make payments using their wallets.
The system formed a “key ceremony” which creates shareable keys that combines with an operational master key. The master key will be used for private key encryption to check while the payment transactions are done.
The patent included that the system will be frozen while the master key is loaded. The system will 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 unfrozen. The payment process can be done only when the system is active.