Off-block chain transactions in combination with on-block chain transactions

Abstract

A system and method for transaction bitcoin is described. Bitcoin can be sent to an email address. No miner's fee is paid by a host computer system. Hot wallet functionality is provided that transfers values of some Bitcoin addresses to a vault for purposes of security. A private key of a Bitcoin address of the vault is split and distributed to keep the vault secure. Instant exchange allows for merchants and customers to lock in a local currency price. A vault has multiple email addresses to authorize a transfer of bitcoin out of the vault. User can opt to have private keys stored in locations that are under their control. A tip button rewards content creators for their efforts. A bitcoin exchange allows for users to set prices that they are willing to sell or buy bitcoin and execute such trades.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS[0001]This patent application claims priority from U.S. Provisional Patent Application No. 61 / 954,434, filed on Mar. 17, 2014; U.S. Provisional Patent Application No. 61 / 990,017, filed on May 7, 2014; U.S. Provisional Patent Application No. 62 / 042,676, filed on Aug. 27, 2014; U.S. Provisional Patent Application No. 62 / 056,100, filed on Sep. 26, 2014; U.S. Provisional Patent Application No. 62 / 086,669, filed on Dec. 2, 2014 and U.S. Provisional Patent Application No. 62 / 099,992, filed on Jan. 5, 2015, each of which is incorporated herein by reference in its entirety.BACKGROUND OF THE INVENTION[0002]1). Field of the Invention[0003]This invention relates to a computer system and method for transacting bitcoin.[0004]2). Discussion of Related Art[0005]The Bitcoin network is a peer-to-peer payment system having a plurality of nodes that are connected to one another. Bitcoin exchange computer systems allow for users to exchange local currency into or ...

AI Technical Summary

Benefits of technology

[0016]The invention provides a host computer system for transacting bitcoin including a processor, a network interface device connected to the processor, a computer readable medium connected to the processor, a data store on the computer readable medium and a set of instructions on the computer readable medium that are executable by the processor. The set of instructions includes a wallet establishment module, a login module, a hosted email module and a wallet management. The wallet establishment module establishes a first wallet in the data store, stores login details for the first wallet and storing a value representative of an amount of bitcoin held by the first wallet. The login module re

Problems solved by technology

Such a block chain verification may take a long time to complete.

It may be a security concern for users that their Bitcoin addresses may be stolen from their wallets.

Existing systems do not provide a solution for maintaining security of Bitcoin addresses while still allowing the users to use Bitcoin addresses within their wallets for transacting with other users.

As a result, the customer or the merchant may incur a loss in local currency.

The customer or merchant

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