Coinbase Patents its Method of Transacting Bitcoin via Email

Prashant  |  Dec 20, 2019

Coinbase CEO Brian Armstrong had applied for patenting a new method of transacting Bitcoin using just emails in 2015. The United States Patent and Trademark Office (USPTO) granted the patent on December 17th. The latest Bitcoin transacting system would allow users to send Bitcoin using just email addresses which would be tied to users Bitcoin wallet addresses without the need to pay any transaction fee.

The patent would surely boost the Coinbase roadmap where they were looking for an alternative to the general method of transacting via exchanges. In an interview earlier this year, Armstong talked about how his firm is looking to drive adoption by finding an alternate and easier way of using cryptocurrencies.

The newly granted patent to the Coinbase CEO was met with mixed reaction on social media where many users pointed out how linking crypto wallets to email addresses would go against one of the key principles of decentralization, i.e. anonymity. One Twitter user said,

 

How Does The New Bitcoin Payment System Works

The USPTO website revealed the blueprint of the new Coinbase transacting method using email, which showed that the new system would use email addresses as identifiers linked to their respective Bitcoin wallet addresses. The system would also include a vault where all the unclaimed transactions would be stored. In order to move these unclaimed Bitcoins, the vault sends out confirmatory links to the attached email addresses and the transaction might take up to 48 hours to clear out.

Source: USTPO

The new system would also host a node linked to a Bitcoin exchange, where users can trade their Bitcoin or buy/sell against fiat. The system would charge no transaction fee as all the transaction on the platform would happen within the system, and there would be no need for miners or mining, who takes the transaction fee.

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