Coinbase gains secure bitcoin payments system patent

The US-based cryptocurrency exchange has outlined how it could create a payment portal which would allow users to pay using bitcoin directly from their digital wallet. The system sets up a “key ceremony” that creates key shares. These are combined into an operational master key, encrypted with the users’ passphrases, that can be made publicly available and deleted after use. The operational master key is utilised for private key encryption during checkout, as well as for transaction signing when a payment is made.

The patent continues to note that the system also includes an API key, meaning distinct websites would be able to launch their own version of the portal. The API key would have two parts: one would be specific to the host server, while the other would be stored on the system developed by Coinbase. The two keys would have to match for a transaction to go through, adding another layer of security for customers.

Recently, in August 2018, Coinbase has acquired Distributed Systems, a US-based startup known for building an identity standard for dApps called the Clear Protocol.