Coinbase Wins Patent for Secure Bitcoin Payments System

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A newly published Coinbase patent seeks to protect a way of making bitcoin purchases more secure for customers. In the filing, published August 14, the U.S.-based cryptocurrency exchange outlined how it could develop a payment portal which would allow users to pay using bitcoin directly from their digital wallet. “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 system as described sets up a “key ceremony” that creates key shares that 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 used for private key