The crypto exchange Coinbase has filed a patent application describing a safe method of payment for goods and services using bitcoin. The document is available on the official website of the US Patent and Trademark Office.
Coinbase plans to create a special payment portal which will allow users to pay bills directly from their bitcoin-purse. The system uses API keys which apply to different websites providing an individual version of a payment portal.
The system called "key ceremony" suggests creating key shares, united in a so-called operational master key. This key is then encrypted with a user passphrase and can be published. The operational master key is deleted after use.
This tool is used to encrypt user’s private key, as well as to sign the transaction at the time the payment is made.
WHY IS IT IMPORTANT?
- The enhanced security system will allow users to make payments directly from their digital wallets.
- Representatives of Coinbase noted that many users are worried that private keys from their bitcoin-wallet can be stolen. Existing systems do not solve the issue of private key security.