Patent of the crypto exchange Coinbase offers a new mechanism for paying for goods and services using bitcoin. This is stated in the application, published August 14 by the US Patent Office and trademark (USPTO).
According to representatives of Coinbase, among users, it is a common concern that their passwords from bitcoin-purses can be stolen. And at the moment, existing systems are not able to solve these security problems. The new payment system, registered by the company, is designed to protect “personal keys“ from user wallets, and create safe conditions for their use.
In its new project, Coinbase uses encryption of secret user codes. This process is called a “key ceremony“. Then these codes will be used to create an encrypted private key for verification, and then when signing transactions. Also, the new platform involves the application of “freeze logic“ the suspension of payment processes in the event of a security alert.
To provide an additional level of security, the system will generate application programming interface (API) keys (APIs). As stated in the patent, the API will be stored on Coinbase Web servers and the user’s server. And to confirm the transaction it will be necessary that the API key obtained from the web server matches the key stored on the exchange server.
Following Coinbase, which are trying to strengthen the security of crypto-currency transactions, MasterCard has recently taken up a patent that is based on blocking technology and will be used to validate the client’s credentials for payment.