Crypto exchanges are making the headlines by hacking attacks, which bear the brunt of. Coinbase wants to now have developed a System to make Paying with Bitcoin & co. safer and protect consumers. 14. August has filed a corresponding Patent, in which she introduces a so-called “key ceremony”. What is it about this new security system?
The cryptographic stock exchange Coinbase recently been developed diligently, always new Services and offers. It was only in July of this year it became known that Coinbase to act now Security tokens and with the help of a voucher system crypto payments at major retailers such as Nike and Uber wants to allow. However, the crypto stock exchange is not resting on its expanded service offering, but has now applied for a Patent for more security in the crypto purchase.
With the ceremony of the Keys to greater safety
Coinbase explains in its application for a Patent, how can you could pay for to develop a payment portal, with the user directly from your Wallet with crypto-currencies. The cryptographic stock exchange looks at the possibility of theft of the Private Keys, as is currently the largest security risk. Currently there is no way to guarantee users the security of their Private Keys, if you have logged out of the merchant’s site and make the payment via their Wallets.
Therefore, Coinbase has developed a System, the so-called Key Shares are generated, which combine in turn to a Master Key. This process is referred to as the crypto-company as a “key ceremony”. The Master Key is secured with the Passphrase of the user and can be deleted after use. In the patent application, it is stated:
To may “at any time after Loading the Master Keys the System will be frozen. The System can be unlocked after the Freezing with the Keys the ceremony of the Keys. The logout process can be performed both when the System is frozen, as well as, if the System is not frozen. The payment process can only be executed when the System is not frozen.“
The described “Freezing” is a security measure that will stop the transactions automatically if an Administrator suspends the System. In addition, the System includes an API key, which consists of two Parts. While a part is reserved for the Host-Server, is stored, the other part in the Coinbase of the developed System. In order to make a transaction, you need to match both keys, whereby a further layer of security is added.