System and method for rendering virtual currency related services

• US 10,489,757 B2
• Filed: 07/17/2015
• Issued: 11/26/2019
• Est. Priority Date: 05/19/2014
• Status: Active Grant

• Current Assignee: Ox Labs Inc.
• Original Assignee: Ox Labs Inc.
• Inventors: Melika, George, Thobhani, Akbar
• Primary Examiner(s): Choo, Johann Y
• Application Number:
  US14/802,018
• Publication Number:
  US 20170061396A1
• Time in Patent Office: 1,593 Days
• CPC Class Codes: G06Q 20/065 using e-cash
• CPC Class Codes: G06Q 20/0658 e-cash managed locally
• CPC Class Codes: G06Q 20/326 Payment applications installed on the mobile devices
• CPC Class Codes: G06Q 20/3267 In-app payments
• CPC Class Codes: G06Q 20/36 using electronic wallets or electronic money safes
• CPC Class Codes: G06Q 20/3678 e-cash details, e.g. blinded, divisible or detecting double spending
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3829 involving key management
• CPC Class Codes: G06Q 20/384 using social networks
• CPC Class Codes: G06Q 2220/00 Business processing using cryptography postage metering system using cryptography G06Q2250/05
• CPC Class Codes: G06Q 50/01 Social networking
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 63/08 for authentication of entities cryptographic mechanisms or cryptographic arrangements for entity authentication H04L9/32
• CPC Class Codes: H04L 63/126 the source of the received data
• CPC Class Codes: H04L 9/3247 involving digital signatures
• CPC Class Codes: H04L 9/40 Network security protocols
• CPC Class Codes: H04L 9/50 using hash chains, e.g. blockchains or hash trees

Abstract

Technique introduced here relates to virtual currency related services, and more specifically, to tools for providing crypto or other digital currency (e.g. bitcoin) related services, including bitcoin DNS service, sending bitcoins over social media communication networks, a bitcoin trading platform and secure storage services for bitcoin.

Claims

1. A method for restricting cryptocurrency transfer out of a digital wallet, comprising:

establishing, by a security database, a threshold associated with transfer of cryptocurrency out of the digital wallet, the threshold being a predefined amount of cryptocurrency;

storing, by the security database, a private key of the digital wallet, the private key required for all amounts of cryptocurrency transferred out of the digital wallet;

requiring, by the security database, at least two verification signatures to access the security database, the at least two verification signatures comprising a first key and a second key, where the first key and second key are not associated with the digital wallet;

providing the first key to a first user and the second key to a second user;

acting, by the security database, as an intermediary between the first user and second user and the digital wallet;

receiving a threshold request from the first or second user requesting the security database to enable a threshold transaction of cryptocurrency out of the digital wallet in an amount above the threshold and receiving the first key and the second key at the security database, then verifying by the security database the first key and the second key;

after the security database verifies the first key and second key, requesting, by the security database, that the first or second user provide the security data base with an out-of-band verification, the out-of-band verification conducted on a different platform than said receiving the first key and second key at the security database, wherein when the security database receives the out-of-band verification, then providing, by the security database, the private key to enable the threshold transaction; and

authorizing by the security database, via use of the private key, a cryptocurrency exchange to cause a transfer out of the digital wallet.

2. The method of claim 1, wherein the threshold is converted into a national currency.

3. The method of claim 1, wherein the cryptocurrency is Bitcoin.

4. The method of claim 1, wherein the out-of-band verification occurs by pressing a button within a predefined period of time of the threshold request on a concealable device comprising:

a housing, a button, and a transmitter.

5. The method of claim 1, wherein the out-of-band verification is a phone call.

6. The method of claim 1, wherein the out-of-band verification is an email.

7. The method of claim 1, further comprising:

establishing a high threshold, the high threshold being a predefined amount of cryptocurrency above the threshold;

receiving a high threshold request from the first or second user requesting the security database to enable a high threshold transaction of cryptocurrency out of the digital wallet in an amount above the high threshold, then requesting, by the security database, that the first or second user satisfy a condition, wherein when the condition is satisfied, then providing, by the security database, the private key to enable the high threshold transaction.

8. The method of claim 7, wherein the condition is that the high threshold request is made during a predefined time range.

9. The method of claim 7, wherein the condition is a second out-of-band verification.

10. The method of claim 7, wherein the condition is receipt of verification provided by a third user.

11. The method of claim 1, further comprising:

detecting an access to the security database without additionally receiving the first key, then deleting, by the security database, the private key.

12. The method of claim 1, wherein the out-of-band verification occurs by an approval via a smartphone application communicatively coupled to the security database.

13. The method of claim 1, further comprising:

When a series of low transactions is requested within a predefined period of time, then transforming the requests for the series of low transactions into said threshold transaction.

14. The method of claim 1, further comprising:

When the summation of a series of low transactions adds up to the threshold within a predefined period of time, then transforming the requests for the series of low transactions into said threshold transaction.

15. The method of claim 1, further comprising:

combining the first key and the second key via an algorithm to return an authorization code; and

incorporating the authorization code in authorizing said transfer.