Checkout and payment

• US 10,050,779 B2
• Filed: 12/11/2017
• Issued: 08/14/2018
• Est. Priority Date: 05/19/2015
• Status: Active Grant

• Current Assignee: Coinbase, Inc.
• Original Assignee: Coinbase, Inc.
• Inventors: Alness, Andrew E., Hudon, James Bradley
• Primary Examiner(s): Gracia, Gary S
• Application Number:
  US15/838,003
• Publication Number:
  US 20180102898A1
• Time in Patent Office: 246 Days
• CPC Class Codes: G06Q 20/065 using e-cash
• CPC Class Codes: G06Q 20/3823 combining multiple encryption tools for a transaction
• CPC Class Codes: H04L 63/00 Network architectures or network communication protocols for network security cryptographic mechanisms or cryptographic arrangements for secret or secure communication H04L9/00; network architectures or network communication protocols for wireless network security H04W12/00; security arrangements for protecting computers or computer systems against unauthorised activity G06F21/00
• CPC Class Codes: H04L 63/06 for supporting key management in a packet data network cryptographic mechanisms or cryptographic arrangements for key management H04L9/08
• CPC Class Codes: H04L 63/166 at the transport layer
• CPC Class Codes: H04L 9/0819 Key transport or distribution, i.e. key establishment techniques where one party creates or otherwise obtains a secret value, and securely transfers it to the other(s) network architectures or network communication protocols for key distribution in a packet data network H04L63/062
• CPC Class Codes: H04L 9/0822 using key encryption key
• CPC Class Codes: H04L 9/085 Secret sharing or secret splitting, e.g. threshold schemes
• CPC Class Codes: H04L 9/0863 involving passwords or one-time passwords network architectures or network communication protocols for using one-time keys in a packet data network H04L63/067

Abstract

A key ceremony application creates bundles for custodians encrypted with their passphrases. Each bundle includes master key share. The master key shares are combined to store an operational master key. The operational master key is used for private key encryption during a checkout process. The operational private key is used for private key decryption for transaction signing in a payment process. The bundles further include TLS keys for authenticated requests to create an API key for a web application to communicate with a service and to unfreeze the system after it has been frozen by an administrator.

Claims

1. A host computer system executing on a set of host computer devices communicably coupled over a bitcoin network to a customer computer system executing on one or more of a set of customer computer devices, the host computer system comprising:

a web application that receives, prior to receiving a request for payment, a request for a first address, and requests the first address from a service executing on the set of host computer devices;

a checkout module that receives the request for the first address, generates the first address and the private key in response to the request for the first address, encrypts the private key to generate an encrypted private key, stores the first address and the encrypted private key, and provides the first address to the web application, wherein the web application;

receives the first address from the service, transmits the first address to the customer computer system, receives a request for payment to a bitcoin address, the request for payment including an amount of bitcoin to be paid, generates an unsigned transaction in response to receiving the request for payment, the unsigned transaction including the amount of bitcoin to be paid in the request for payment, and requests a signing of the unsigned transaction to create a signed transaction; and

a payment module that receives the request for signing the transaction from the checkout module, determines the first address corresponding to the bitcoin address in the unsigned transaction, determines the private key stored in association with the first address, signs the transaction with the private key to create the signed transaction, and provides the signed transaction to the web application, the web application receiving the signed transaction and broadcasting the signed transaction over the bitcoin network;

wherein the web application, the checkout module, and the payment module are executed by one or more of the set of host computer devices.

2. The host computer system of claim 1, further comprising:

a master key loader that stores an operational master key in memory of the service, wherein the checkout module encrypts the private key with the operational master key to generate an encrypted private key that is stored, and decrypts the encrypted private key with the operational master key to generate a decrypted private key for signing the transaction, wherein the master key loader is executed by one or more of the set of host computer devices.

3. The host computer system of claim 2, further comprising:

a key ceremony application, executed by one or more of the set of host computer devices, that creates a for-distribution master key, stores the for-distribution master key in the memory, splits the for-distribution master key into N shares, distribute the N shares among N custodians, and clears the for-distribution master key from the memory; and

wherein the master key loader receives at least M of the N shares, where M is equal to or less than N, and derives the operational master key from the M shares before storing the operational master key in the memory.

4. The host computer system of claim 1, further comprising a freeze flag logic, executed by one or more of the set of host computer devices, that detects a freeze flag on-state, disallows signing of the transaction in response to detecting the freeze flag on-state, detects a freeze flag off-state, and allows signing of the transaction in response to detecting the freeze flag off-state.

5. The host computer system of claim 4, wherein the freeze flag logic receives at least a plurality of authenticated requests to unfreeze transaction signing, and allows signing of the transactions upon a determination by the service that the plurality of authenticated requests is at least equal to a predetermined number.

6. A method of transacting bitcoin comprising:

receiving, by a web application executed by one or more of a set of web application devices, prior to receiving a request for payment, a request for address;

requesting, by the web application, an address from a service;

receiving, by a service executed by one or more of a set of host computer devices, the request for address;

generating, by the service, an address and a private key in response to the request for address;

storing, by the service, the address and the private key in association with one another;

providing, by the service, the address to the web application;

receiving, by the web application, the address from the service;

transmitting, by the web application, the address to a customer computer system;

receiving, by the web application, a request for payment to a bitcoin address, the request for payment including an amount of bitcoin to be paid;

generating, by the web application, an unsigned transaction in response to receiving the request for payment, the unsigned transaction including the amount of bitcoin to be paid in the request for payment;

requesting, by the web application, a signing of the unsigned transaction to create a signed transaction;

receiving, by the service, the request for signing the transaction;

determining, by the service, the address corresponding to the bitcoin address in the unsigned transaction;

determining, by the service, the private key stored in association with the address;

signing, by the service, the transaction with the private key to create the signed transaction;

providing, by the service, the signed transaction to the web application;

receiving, by the web application, the signed transaction; and

broadcasting, by the web application, the signed transaction over the bitcoin network.

7. The method of claim 6, further comprising:

storing, by a master key loader executed by one or more of the set of host computer devices, an operational master key in memory of a service; and

encrypting, by the service, the private key with the operational master key to generate an encrypted private key that is stored; and

decrypting, by the service, the encrypted private key with the operational master key to generate a decrypted private key for signing the transaction.

8. The method of claim 7, further comprising:

creating, by a key ceremony application service executed by one or more of the set of host computer devices, a for-distribution master key;

storing, by the key ceremony application, the for-distribution master key in the memory;

splitting, by the key ceremony application, the for-distribution master key into N shares;

distributing, by the key ceremony application, the N shares among N custodians;

clearing, by the key ceremony application, the for-distribution master key from the memory;

receiving, by the key ceremony application, at least M of the N shares, where M is equal to or less than N; and

deriving, by the key ceremony application, the operational master key from the M shares before storing the operational master key in the memory.

9. The method of claim 6, further comprising:

detecting, by the service, a freeze flag on-state;

disallowing, by the service, signing of the transaction in response to detecting the freeze flag on-state;

detecting, by the service, a freeze flag off-state; and

allowing, by the service, signing of the transaction in response to detecting the freeze flag off-state.

10. The method of claim 9, further comprising:

receiving, by the service, at least a plurality of authenticated requests to unfreeze transaction signing, the service allowing signing of the transactions upon a determination by the service that the plurality of authenticated requests is at least equal to a predetermined number.

11. A non-transitory computer-readable medium having stored thereon a set of instructions that, when executed by a processor of a computer carries out a method of transacting bitcoin comprising:

receiving by a web application executed by one or more of a set of host computer devices, prior to receiving a request for payment, a request for a first address;

requesting, by the web application, the first address from a service;

receiving, by a service executed by one or more of the set of host computer devices, the request for the first address;

generating, by the service, the first address and a private key in response to the request for the first address;

storing, by the service, the address and the private key;

providing, by the service, the first address to the web application;

receiving, by the web application, the first address from the service;

transmitting, by the web application, the first address to the customer computer system;

receiving, by the web application, a request for payment to a bitcoin address, the request for payment including an amount of bitcoin to be paid;

generating, by the web application, an unsigned transaction in response to receiving the request for payment, the unsigned transaction including the amount of bitcoin to be paid in the request for payment;

requesting, by the web application, a signing of the unsigned transaction to create a signed transaction;

receiving, by the service, the request for signing the transaction;

determining, by the service, the first address corresponding to the bitcoin address in the unsigned transaction;

determining, by the service, the private key stored in association with the first address;

signing, by the service, the transaction with the private key to create the signed transaction;

providing, by the service, the signed transaction to the web service;

receiving, by the web application, the signed transaction; and

broadcasting, by the web application, the signed transaction over a bitcoin network.