Coinbase Patent Shows Exchange Is Refining Security for Bitcoin Payments Coinbase Bitcoin Exchange

How To Buy Bitcoin Cash on Coinbase And Trade Altcoins with ZERO Fees| Cryptocurrency Trading

Coinbase Patent Shows Exchange Is Refining Security for Bitcoin Payments

A patent by U.S. crypto exchange and wallet provider Coinbase proposes a new mechanism for further securing Bitcoin payments.

Coinbase Bitcoin Exchange

The filing claims that existing systems do not adequately address concerns “that the private keys of [users’] Bitcoin addresses may be stolen from their wallets,” when making payments, and in particular when checking out on a merchant page. 

Coinbase Bitcoin Exchange , which would involve encrypting private user passphrases into “masterkey key shares.” These shares are then combined into an “operational masterkey” that would be used to generate an encrypted private key upon checkout and then a decrypted private key when signing transactions.

Coinbase Bitcoin Exchange

(API) key generation in order to provide an extra layer of security when the system is used across the web. As the patent outlines, the API would be stored in two parts, one on the Coinbase web service, and the other on the user/host server. Transactions would be confirmed “only if the API key received from the web server matches the API key stored by the service.”

As Coinbase looks to bolster security within crypto transactions,

to secure consumer payment credentials at the point of sale.