Bitcoin purchases can now be more secure for customers. A newly published Coinbase patent seeks to develop a payment portal that would allow users to pay using bitcoin directly from their digital wallet.
The Latest Coinbase Patent
On August 14, the U.S.-based cryptocurrency exchange announced and outlined how this was possible. According to the patent, it is highly possible that someone may steal the private keys of the bitcoin addresses from users’ wallets. And thus, it is an extremely important security concern for the users. However, even the existing systems do not provide a solution for maintaining security over private keys. But the users can still check out on a merchant page to make payments using their wallets.
The entire process goes as follows – a “key ceremony” is set which creates key shares that are combined into an operational master key. It is encrypted with the users’ passphrases. The user can make these passphrases publicly available and delete them after use. When a payment is made, the user then uses the operational master key for transactions related to signing in. And then one can use private key encryption during checkout. A feature by the name “Freeze logic” is also employed in the process. Here if an administrator chooses to suspend the system then with the help of ‘freeze logic” the transaction will halt automatically. It is an important security measure.
The patent also claims that there is an API key incorporated in the system. The API key would enable different websites to launch their own version of the portal. The API key is divided into two parts where one would be specific to the host server and the other would be stored on the system developed by Coinbase. It is necessary that the two keys should match with each other else the transaction will be termed as void. Well, this is another layer of security for the customers.