Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Brian Amstrong, the CEO of Coinbase, has patented a system that allows users to transact Bitcoin directly using email.
Brian Amstrong, the CEO of Coinbase, has patented a system that allows users to transact Bitcoin (BTC) directly using email.
First filed in March 2015 and awarded by the United States Patent and Trademark Office (USPTO) on Dec. 17, the method enables users to make Bitcoin payments using email addresses tied to wallet addresses, without incurring transaction fees.
Zero-fee convenience
As the abstract for the invention indicates, email addresses serve as identifiers for usersâ wallet addresses within the system. The method couples a Bitcoin wallet creation and management module with a corresponding email module on a given host computer system:
Diagram of the invention. Source: USPTO
As the patent outlines, the invention includes the creation of a vault â which can be an individual or groupâs â in which unclaimed Bitcoin are stored, ostensibly to heighten security:
âHot 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.â
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.Â
In most cases, transfer requests between email addresses and their associated wallets within the system do not imply the charging of a minerâs fee, as the mechanism is nested within a single host computer system.
In addition to these features, 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 âlock inâ a local currency price for their cryptocurrency in order to mitigate exchange rate losses.
Crypto Twitterers unconvinced
While the appeal of a streamlined, email-based Bitcoin payments system is clear, news of the patent has so far been met with ambivalence on crypto Twitter. One user, â@Maiirye,â responded that:
âI know we are already doing kyc/aml with the exchanges but linking your wallet to an email address moves us one step closer to ânon anonymousâ transactions. The patenting and the âvaultâ for holding unclaimed coins centralizes bitcoin transmissions... Itâs a no for meâ
The email system nonetheless appears to align with Armstrongâs stated ambitions for Coinbaseâs roadmap; in an interview this summer, he said he was looking beyond trading services and towards driving the universal adoption of cryptocurrencies in the global economy.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.