Coinbase Won A Patent For A Secure Online Payment System

The recent Coinbase patent is aimed at creating safer conditions for purchases using Bitcoin.

In a statement published on August 14, Coinbase described how it can develop a payment portal that will allow users to pay Bitcoins directly from their digital wallet.

“The fact that security keys from Bitcoin-addresses of users can be stolen is a serious security problem,” the patent says. “Existing systems do not provide a solution to this problem, while still allowing users to place an order on the seller’s page.”

The system allows you to exchange key information, combined with a universal key, which is encrypted with user passwords. These passwords can become publicly available and can be deleted after use.

A universal key is used to encrypt a private key when placing an order, as well as to confirm the transfer of funds when making a payment.

The system uses a special security measure that automatically blocks the money transfer at the decision of the administration.

Further in the document it is said that the system also includes an API key. This means that different websites can launch their own version of the portal.

The API key will consist of two parts, one of which will be stored in the host server and the other in the Coinbase system. For translation, these two keys must match. This will provide an additional level of security for customers.