As per the reports, one of the leading cryptocurrency exchange platforms, Coinbase, has successfully earned the patent it had been waiting for, since a considerably long time. The platform intended to furnish the investors of the crypto community with complete security while opting Bitcoin as their mode of payment. As it seems, the dream would now come true, soon enough.
As per the exact information, the U.S. Patent was made available to the platform on the 14th of this month. At the time of filing for the approval of the patent, Coinbase, clearly put forward the details as to how it had envisioned the Bitcoin payment portal to function, allowing its customers to make direct payments from their crypto wallets.
Putting up with the idea in simpler words, the system suggests the existence of “a key ceremony”, whose function would be to assure that the security of any transaction is put to no compromise i.e. the transaction is end to end encrypted.
In the words of the U.S. based Crypto Exchange.
“It may be a security concern for users that the private keys of their bitcoin addresses may be stolen from their wallets. Existing systems do not provide a solution for maintaining security over private keys while still allowing the users to check out on a merchant page and making payments using their wallets.”
As stated, the key ceremony application would build ‘bundles’ for custodians which would further be ‘encrypted with their passphrases’. Additionally, each bundle will be assigned with an individual master key. However, all these master keys will eventually be combined to form ‘one operational master key’. This operational master key is to be finally used for the purpose of signing transactions at the time of “check-out”.
Apparently, there is an API key too. It will be nothing but ‘a code’ provided by computer programs, with an intention to recognise the users, and will differ from website to website and also, from platform to platform.
However, as per the plans, the key would serve a great role in the security system by providing an extra layer of protection. It has been intentionally divided into two parts. One part would permanently be stored on the server’s system (Coinbase), and the second one would precisely belong to the host’s server. To be able to carry out the transaction successfully, the two keys are required to be identical.
As explained according to the patent, another aspect that was laid special emphasis on was the “Freeze Logic”.
Breaking down the exact language of the patent, while conveying the same idea,
“Once the master key gets loaded, the system can be frozen at any given point of time. To unfreeze the system, various keys from the ‘key ceremony’ must be put to use. The checkout process can be carried out regardless of the system being frozen or unfrozen. However, the payment process can be carried out only in case of an unfrozen system.”