Brian Amstrong, the CEO of cryptocurrency exchange Coinbase has patented a system that allows users to transact Bitcoin directly using email.
The method enables users to make Bitcoin payments using email addresses tied to wallet addresses, without incurring transaction fees.
The patent was filed first in March 2015 and awarded by the United States Patent and Trademark Office (USPTO) on Dec. 17.
Bitcoin Transaction With Email
Email addresses serve as identifiers for users’ wallet addresses within the system. The method integrates a Bitcoin wallet creation and management module with a corresponding email module on a given host computer system.
<img width="772" height="409" src="https://www.cryptonewspoint.com/wp-content/uploads/2019/12/BITCOIN-TRANSACTIONS-WORK.png" alt="bitcoin transaction" class="wp-image-7428 lazyload" />
The patent outlines that the invention includes the creation of a vault which can be an individual or group’s in which unclaimed Bitcoin are stored, ostensibly to heighten security:
“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 […] A vault has multiple email addresses to authorize a transfer of bitcoin out of the vault.”
After a request is made to transfer Bitcoin out of the vault, confirmatory links are sent via email to the user(s) and typically takes 48 hours to clear. In most cases, transfer requests between email addresses and their associated wallets within the system do not imply the charging of a miner’s fee, as the mechanism is nested within a single host computer system.
Moreover, the proposed network would include a node that hosts a Bitcoin exchange where users can trade their Bitcoin for fiat currency.
It also provides for an instant exchange mechanism that allows for merchants and customers to “lock in” a local currency price for their cryptocurrency in order to mitigate exchange rate losses.
Source: Cointelegraph