Coinbase Applies for Direct Bitcoin Payments System Patent
Digital asset exchange Coinbase continues to make strides in streamlining user access to cryptocurrency payments and trading, following an application for a direct bitcoin payments system patent, filed Aug. 14. Making Bitcoin Payments More Convenient and Secure San Francisco-based startup Coinbase is seeking to solve the security issues surrounding direct bitcoin wallet payments, according to a patent. In the patent, filed Aug. 14, it states: “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.” Coinbase plans to employ a “key ceremony” system to integrate key shares with operational master keys for encrypted, sovereign merchant transactions. The operational master key contains users’ passphrases and acts as a transaction signature for when payments are made. To ensure security, Coinbase’s patent also outlines a security measure called “freeze logic,”
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