Coinbase cryptocurrency exchange, a United States-based firm has filed for a new patent that will aid the security of cryptocurrency wallets and payments to merchants. The filing was done with the United States Patent and Trademark Office (USPTO). The patent filing will lead to combating the menace of hacking ranging in the cryptocurrency community.
Cryptocurrency Security Patent
Coinbase which is one of the most popular and largest cryptocurrency exchange files patent for cryptocurrency security, as it seeks safety for its users and the cryptocurrency community at large. The recent filing for a patent with the United States Patent and Trademark Office (USPTO), includes a patent for a BTC payment system, Freeze logic and API.
Security Patent or the Bitcoin Payment System
Coinbase file for the patent of the security of the Bitcoin payment system. The Bitcoin payment security system patent filed for deals which allows the wallet users to encrypt the passphrases as an additional protection layer by creating a master key. The master key would be used to encrypt the private keys the customer has, which he’s able to apply for all the transaction once. After the transaction, the master key would be deleted and will not be accessible to any third party again.
This patent implies that every transaction requires the validation of a master key that must be explicitly created for it. This patent would build more security around Bitcoin wallets, against the intrusion of hackers.
The Freeze Logic and The API Patent
The freeze logic patent is an introduction to the cryptocurrency wallet system that will lead to freezing of wallet by the system at any sign of suspicion of hack or breach in the system. This would make transaction impossible without the consent of the wallet owner.
Once the system is frozen, no transaction would be possible until the threat to the system is dealt with, after which it would be returned to normalcy with the use of administrator-specific keys.
Inclusive of the patent also is the API integration capability. This entails using the website to run a different version of the system, in which will have a specific pair of a key for Bitcoin transactions on the Coinbase server.
Security Menace In the Cryptocurrency community
The filing for a security patent would lead to sniffing out security menace that has drowned the community.
Exchange and cryptocurrency wallet hacking have both dominated the news in recent times. This problem facing cryptocurrency is said to be among the reasons why cryptocurrencies, in general, haven’t gotten the much anticipated global adoption that it deserves. Likewise are new cases of Bitcoin ATM malware hacks.
This new initiative by Coinbase is a step in the right direction as it’s set to tighten up, just one aspect of the security of users assets on its platform to enhance protection of customer investments.