Coinbase Wins Patent for Secure Bitcoin Payments System

A newly published Coinbase patent seeks to protect a way of making bitcoin purchases more secure for customers.

In the filing, published August 14, the U.S.-based cryptocurrency exchange outlined how it could develop a payment portal which would allow users to pay using bitcoin directly from their digital wallet.

“It may be a security concern for users that the private keys of their bitcoin addresses may be stolen from their wallets,” the patent stated. “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.”

The system as described sets up a “key ceremony” that creates key shares that are combined into an operational master key – encrypted with the users’ passphrases – that can be made publicly available and deleted after use.

The operational master key is used for private key encryption during checkout, as well as for transaction signing when a payment is made.

What the filing calls “freeze logic” is also employed in the process, a security measure that automatically halts transactions if an administrator chooses to suspend the system.

The patent explains:

“At any point in time after the master key is loaded, the system can be frozen. The system can be unfrozen after it has been frozen using keys from the key ceremony. The checkout process can be carried out when the system is frozen and when the system is unfrozen. The payment process can only be carried out when the system is unfrozen.”

The patent goes on to note that the system also includes an API key, meaning different websites would be able to launch their own version of the portal.

The API key would have two parts: one would be specific to the host server, while the other would be stored on the system developed by Coinbase. The two keys would have to match for a transaction to go through, adding another layer of security for customers.


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Author: Nikhilesh De
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Reddit to Reinstate Bitcoin Payments, Plans to Add Litecoin and Ethereum

 

 

The social media has given a boost to the crypto community, and brings back the old days of crypto payments available.

Reddit, one of the most widely used social media by crypto enthusiasts, will soon return Bitcoin as a payment option. Other coins, those supported by Coinbase – Litecoin (LTC) and Ethereum (ETH), may follow soon afterwards.

Reddit was known for having a Dogecoin tipping system for a long time, before abuses were found.

Reddit stopped Bitcoin payments in March due to technological incompatibility with Coinbase, the chief service used for handling crypto payments. But after a redesign, the option would reappear soon. Bitcoin payments were available until recently for the Reddit Gold membership program.

“We just didn’t have time to upgrade our current API integration, and once the redesign…is landing … I think we’ll see crypto payments come back,” said Chris Slowe, chief technology officer for Reddit.

It is somewhat encouraging that Reddit finally admitted technical difficulties were the issue.

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The dropping of Bitcoin came at a time when the asset struggled to keep its price, and a bear market was expected to continue. Alexis Ohanian, co-founder of Reddit, was bullish on Ethereum, seeing it go to $1,500 by year end.

The news coincided with a small bump in BTC, LTC, and ETH prices. BTC rose to $9,602.27, while LTC seems headed to go above $160, while ETH continues to gain at $770.

In the earlier years of crypto coins, social media and crypto went together. But since then, increasing prices, scams and scandals and a move to other communication channels lowered the use of tipping. The Bitcoin network also saw lowered levels of use as fees rose.

One of the few digital assets still used for social media was ReddCoin (RDD), which recently saw a boost based on a John McAfee tweet. RDD was one of the strongest performers in the past month, nearly tripling its price, growing by 7% overnight to $0.011. The RDD digital asset is not officially adopted by Reddit, but is often used in tipping informally.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author Christine Masters

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