Investment and trading of crypto-currency startup Coinbase has received a patent for secure bitcoin payments.
The patent, published August 14, describes the problem of storage of the private key: being vulnerable to break-ins, wallets contain access to the means and to the key. In turn, the system described in the application Coinbase, “solves the problem of security of private keys, while not preventing users to make purchases and pay with bitcoins from their wallets.”
Under the system created by Coinbase, a request for verification activates the so-called “ritual of the keys”: the first generated part of the key, after which they merged in the master key (with advanced encryption using a code word), which can be made public and delete immediately after use. Master keys are used to further encrypt the private key, as well as trigger signature when making a payment.
The functionality of the system Coinbase also provides a Protocol freezing: during pause operation of the system by the administrator, all current transactions are automatically held until the recovery system’s operational activities.
In the text of the patent also describes the relationship between the two innovations:
“The system can be “frozen” at any time after activation of the master key. Defrost system is made using parts of “ritual”. The checkout happens even when frozen. […] Completion of the payment process occurs only when the system is fully active.”
In addition, according to the text of the patent, the system contains an API key, that is, third-party resources can use it as the basis for their own similar payment solutions. This key is also divided into two parts, one of which is stored in the “parent” system Coinbase, and the second at the host server third-party resource. With every transaction on these keys will be checked for compatibility, thus creating an additional protective barrier.
Perhaps in the future developments of the Coinbase will be supplemented by an auxiliary identification systems. Their integration can provide the technology and experts Distributed Systems — a startup specializing in the digitization and management of personal data, which the company acquired in this environment.