Crypto exchange Coinbase has won a patent associated with the development of a new system to enable users to make Bitcoin payments more easily. The patent, filed by Coinbase CEO Brian Armstrong, back in 2015, will allow users to make payments directly from their email addresses that are connected to their hot wallets.
The proposed system makes crypto panic-inducing transactions easier for dummies as they can cryptocurrency payments to other people’s email addresses, meaning they don’t need to worry about the intimidating and long crypto address.
The checkout and payment process, as described in the filing, indicates that in order to transfer bitcoin out of the wallet, the sender makes a request indicating the recipient’s email address and the amount he wants to transmit.
Coinbase’s crypto patent document stated that when the user clicks the “Finish” button, the system creates a vault that looks like a wallet but has a security feature that limits the transfer of bitcoin out.
2020 Global Market Outlook: How the “Known Unknowns” Can Affect CurrenciesGo to article >>
In order to make BTC payments more secure, Coinbase’s filing mentioned that two notifications will be sent to the transaction parties’ email addresses, and the summary includes the phone number associated with the wallet and that the bitcoin will not be transferred out of the wallet for a period of 48 hours.
The private keys of Bitcoin addresses are split and distributed to keep the transaction secure and prevent the potential exposure of keys during checkout. The system also enables fiat-to-crypto transactions through an instant exchange and thus allows for users to set prices that they are willing to sell or buy bitcoins and execute such trades.
Additionally, the users will not pay mining fees, but the system charges transaction commission on transfers sent to external wallets. The administrator may suspend suspicious transactions through an automated process, which is also part of the payment system mentioned in Coinbase’s filing.
After the transaction is confirmed in the blockchain, an email is generated to the recipient. The email will tell the recipient who sent the bitcoins, pulling in his email address, and display the transaction details, including the amount of bitcoins sent.
Coinbase has also won two other patents for strengthening compliance, risk management, and fraud prevention through flagging non-compliant accounts.