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The New Coinbase Index Fund in Now Live



n March, Coinbase launched its own cryptocurrency index, naturally based on the coins they offered. Now the San Francisco-based company announces the creation of an investment fund, called the Coinbase Index Fund, reserved for large investors, with a cut from 250,000 to 20 million dollars.

This is a product that can therefore apply to both private investors and institutional operators, such as investment funds in cryptocurrencies or hedge funds.

Of course the cryptocurrencies treated are only those related to the Coinbase platform, so they are:

Bitcoin weighed at 61.5%
Ethereum weighed at 27.2;
Bitcoin Cash, weighed at 8.2%
Litecoin weighed at 3.1%

Currently, Ethereum Classic (ETC) is not supported, although a few days ago it was officially announced its introduction in the bouquet of the exchange, causing the quadrupling of the volumes exchanged in 24 hours. However, its integration can be expected in a short time.

At the moment only accredited investors in the United States are admitted, therefore either private american residents or financial operators . All private investors must have assets of at least one million dollars, with incomes of at least $ 200,000 a year.

This will clearly limit the number of eligible investors but allows the offer to be reserved only for that range of operators who can accept the risk associated with an investment in cryptocurrencies.

The fund will be reviewed several times a year based on the performance of the various cryptocurrencies and security, based on their listing and development prospects.

The managerial work will be paid with an annual fee of 2%, based on the potential profits that can be produced by the fund.

So it is to be presumed that there will be a multi-annual commission compensation mechanism in the event of failure to reach the target.

After Coinbase Index Fund, the company is expected to launch more funds in the future, over a wider range of cryptocurrencies, accessible to all investors, but has not given any specific time period to the transaction.




Coinbase Leads Charge to Swap Fear for Trust in Bitcoin and Crypto Space



Coinbase is working at break speed to challenge perceptions that Bitcoin and crypto-related businesses have major pain points regarding trust and security. As part of its strategy to build an open financial system for massive mainstream adoption, the San Francisco-based cryptocurrency exchange unveiled three major steps this week.

  • Coinbase acquisition of San Francisco-based startup Distributed Systems Inc.
  • Coinbase patent filing for a new Bitcoin payment portal
  • Coinbase re-launch of the Coinbase Wallet with new integration of the open-source DApp Toshi

On Wednesday, Coinbase acquired Distributed Systems, founded in 2015, to help build a digital economy that incorporates solid solutions for validating and verifying identity. The move is meant to address identity theft and redundant verifications.

With SIM card hacking, online identity theft and fears about compromised private and personal digital data, Coinbase is trying to tackle a major obstacle for crypto adoption.

The company believes “decentralized identity systems represent a transformative shift in our relationship with technology.”

By handing out Social Security numbers to banking agents, government agents, prospective landlords and employers, consumers invite risk, fear of fraud and identity theft.

The collaboration between Coinbase and Distributed Systems is designed to change that dynamic. “A decentralized identity will let you prove that you own an identity, or that you have a relationship with the Social Security Administration, without making a copy of that identity,” writes B Byrne, project manager for Coinbase ’s Identity team.

The real key is to allow the blockchain to verify a person’s identity without any individual having to reveal their SSN or other sensitive information. 

“Blockchain technology that powers cryptocurrencies offers a new way to let us all be ‘verified’ everywhere we go on the internet, feeling safer about our interactions with others and opening the door to the experiences that require trust,” Byrne writes.

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Also on Wednesday, Coinbase announced that the open-source decentralized app Toshi is becoming Coinbase Wallet, a standalone wallet app. Toshi was developed by Coinbase about a year ago. If you’re already using Toshi, the company says it will automatically upgrade to the Coinbase Wallet shortly. It allows users to store their private keys.

“We believe that the applications of the future will be built on a decentralized internet (the blockchain). Everyone will own a crypto wallet that allows them to access decentralized applications (dapps) and that wallet will be their gateway to the open financial system,” writesCoinbase developer Siddharth Coelho-Prabhu.

The Coinbase Wallet suite of features allows users to

  • Manage ETH and all your ERC20 tokens (with BTC, BCH and LTC in the near future)
  • Receive airdrops and ICO tokens
  • Buy and store crypto collectibles  (unique and unreplicable) and use them in games, or trade them on marketplaces
  • Send payments to anyone anywhere, without geographical borders or fees
  • Access leading decentralized exchanges and relayers to buy and sell tokens
  • Explore the full universe of third party DApps that enable everything from taking out a loan or lending to others on the blockchain to earning crypto by answering questions, performing services, or completing tasks

Coinbase has also recently filed for a patent to make Bitcoin payments more secure. Filed on August 14, the patent’s technology provides a solution for maintaining security over private keys while allowing consumers to use their Bitcoin wallets to pay merchants.

The tech would allow a checkout transaction to be “frozen” through a “key ceremony” that has master key functions — encrypting private keys and transaction signing. While users can spend crypto, they’ll also have the ability to stop payments.

“At any point in time after the master key is loaded, the system can be frozen. The system can be unfrozen after it has been frozen using keys from the key ceremony. The checkout process can be carried out when the system is frozen and when the system is unfrozen. The payment process can only be carried out when the system is unfrozen.”

The patent also details the development of an API, through which the system can be deployed across the internet for e-commerce.

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Coinbase Patent Shows Exchange Is Refining Security for Bitcoin Payments



A patent by U.S. crypto exchange and wallet provider Coinbase proposes a new mechanism for further securing Bitcoin (BTC) payments, according to a filing published by the U.S. Patent and Trademark Office (USPTO) August 14.

The filing claims that existing systems do not adequately address concerns “that the private keys of [users’] Bitcoin addresses may be stolen from their wallets,” when making payments, and in particular when checking out on a merchant page.

Coinbase is therefore applying to patent a so-called “key ceremony” solution, which would involve encrypting private user passphrases into “masterkey key shares.” These shares are then combined into an “operational masterkey” that would be used to generate an encrypted private key upon checkout and then a decrypted private key when signing transactions.

The proposed system would also allow for administrators to deploy a “freeze logic” to suspend all payment processes in case of a security alert.

The filing also proposes a method of application programming interface (API) key generation in order to provide an extra layer of security when the system is used across the web. As the patent outlines, the API would be stored in two parts, one on the Coinbase web service, and the other on the user/host server. Transactions would be confirmed “only if the API key received from the web server matches the API key stored by the service.”

As Coinbase looks to bolster security within crypto transactions, MasterCard has recently been pursuing a patent that would use blockchain to secure consumer payment credentials at the point of sale.

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Coinbase Files Patent for Direct Bitcoin Payments System



Crypto exchange Coinbase recently filed for a patent detailing a new system to enable online users to make Bitcoin payments more securely. The patent, filed on August 14, will allow users to make payments directly from their Bitcoin wallet.

The patent cites the issue of customers being required to compromise on the security of their own private keys, saying:

“Existing systems do not provide a solution for maintaining security over private keys while still allowing the users to checkout on a merchant page and making payments using their wallets.”

The new system will enable users to pay directly in a “key ceremony” which encrypts private user passphrases into a masterkey during checkout to greatly reduce the risk of the keys being stolen. The masterkey serves the function of encrypting private keys and transaction signing, and upon being used the masterkey is deleted.

The system allows for administrators to freeze all processes using what is described as “freeze logic,” presumably in the event that a user reports that they are being hacked or their identity is being assumed.

“At any point in time after the master key is loaded, the system can be frozen. The system can be unfrozen after it has been frozen using keys from the key ceremony. The checkout process can be carried out when the system is frozen and when the system is unfrozen. The payment process can only be carried out when the system is unfrozen.”

The patent also describes an API generation service that will enable the payment system to be used by other websites and services. The API has two parts, one of which will be stored on the Coinbase web service and the other on the user/host server to allow for an extra security measure as transactions are confirmed “only if the API key received from the web server matches the API key stored by the service.” Such a payment system that allows secure Bitcoin payments on multiple websites could stand to be widely adopted throughout the cryptocurrency and e-commerce space.

Coinbase has applied for numerous Bitcoin-related patents in the past, with nine filed in 2015 alone leading to critics accuse the exchange of seeking to create a monopoly on Bitcoin services, which CEO Brian Armstrong denied in a blog post on Medium which stated that the goal was to keep the technology out of the hands of patent trolls who would patent services and hold them for ransom.

In 2016, CCN reported that the exchange filed for a patent to secure Bitcoin private keys, and in a sense, this new system can be seen as a continuation of that which will allow other businesses to use the Coinbase Bitcoin payment portal.

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