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Bitcoin private key splitting for cold storage

a technology of bitcoin and private keys, applied in payment protocols, social networks, instruments, etc., can solve the problems of bitcoin addresses, existing systems do not provide a solution for maintaining bitcoin address security, and block chain verification may take a long time to compl

Inactive Publication Date: 2015-09-17
COINBASE
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  • Summary
  • Abstract
  • Description
  • Claims
  • Application Information

AI Technical Summary

Benefits of technology

The invention provides a system and method for transacting bitcoin using a host computer system and network interface device. The system includes a data store with a set of instructions for creating a first wallet and transferring bitcoin between the first and second wallets. The system allows users to log in to the first wallet and send email to another user's email address with a bitcoin address. The system also records transfers of bitcoin without paying a miner's fee. The technical effects of the invention include improved security and efficiency for transacting bitcoin.

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 may then be reluctant to purchase using bitcoin.
If the user name and password become compromised then it may be possible for bitcoin to be stolen out of the wallet.
Users may therefore be reluctant to store bitcoin in their wallets without any additional security features.
Content creators often put a lot of time and energy into their blog posts.
These efforts are rarely rewarded because efficient technology does not exist for rewarding bloggers for their efforts.

Method used

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  • Bitcoin private key splitting for cold storage
  • Bitcoin private key splitting for cold storage
  • Bitcoin private key splitting for cold storage

Examples

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Embodiment Construction

[0081]FIG. 1A of the accompanying drawings illustrates a network environment 10, including the Bitcoin network 12, a first host computer system 14 within which the invention manifests itself, a second host computer system 16, first and second user devices 18 and 20 connected over the Internet 22 to the first host computer system 14, a third user device 24 connected to the second host computer system 16, a bitcoin exchange computer system 26 and a miner computer system 28.

[0082]The Bitcoin network 12 includes a host node 30 and a plurality of remote nodes 32A to D that are connected to one another. The first host computer system 14 is connected to the host node 30. The bitcoin exchange computer system 26 is connected to the remote node 32A. The second host computer system 16 is connected to the remote node 32B. The miner computer system 28 is connected to the remote node 32D or could reside on the same computer system.

[0083]The first host computer system 14 is used primarily for tran...

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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 ...

Claims

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Application Information

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IPC IPC(8): G06Q20/38G06Q20/36G06Q20/06
CPCG06Q20/3829G06Q20/363G06Q20/065G06Q2220/00G06Q20/381G06Q40/04G06Q20/0658G06Q20/3678G06Q20/4014G06Q20/36G06Q20/3825G06Q20/40G06Q20/384G06Q20/386G06Q20/382G06Q20/16H04L51/08G06Q20/388
Inventor LANGSCHAEDEL, JULIANARMSTRONG, BRIAN D.EHRSAM, FRED E.
Owner COINBASE
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