Cryptocurrency

New Patent Application By Coinbase To Improve Cryptocurrency Wallet Security

Coinbase has filed a new patent application recently. The aim of the invention is to incorporate an additional layer of cryptocurrency wallet security for making payments to the merchants directly.

A new patent application filed by Coinbase defines a technology whose objective is to enhance the security of digital currency wallets. The invention will also enable a direct and secure payment of digital currencies to the merchants.

The patent application has been filed with the USPTO, the United States Patent and Trademark Office by the cryptocurrency exchange. The patent application of Coinbase states that its users may have a security concern that their private keys associated with Bitcoin addresses may get robbed from their wallets.

Moreover, the current systems do not offer an adequate solution for maintaining cryptocurrency wallet security for the private keys. Plus, the existing systems allow the users to leave a merchant page but pay using their wallets.

There is a description of the “key ceremony application” in the patent application that creates a bundle of encrypted keys with a master key. This operational master key can be used for encryption of private key while the user is checking out.

Importance Of Private Key And Public Key

The operational private key is used for decrypting the private key to sign a transaction when a payment is being made. According to the patent, transactions do not have the explicit ability to identify the payee and the payer by wallet or name.

Rather, a Bitcoin-based transaction transfers an ownership to a different address altogether, which is known as a “Bitcoin address”. The public part of the cryptographic key pairs creates the Bitcoin address. However, a key pair’s private part is hidden from the public, ZDNet reported.

The patent application seems to have all the potential to enhance cryptocurrency wallet security. A payment message is broadcasted by the user to send Bitcoin to an address. An associated private key is used for digitally signing this message.

 

 

 

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Pala Sen is an avid follower of fintech, travel and health updates, current affairs and entertainment news from all across the world and writing is a passion for her. She had been previously associated with the corporate world for several years and holds a degree in MBA and a postgraduate software diploma called GNIIT from NIIT.

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