Untitled record

CROSS-REFERENCE TO RELATED APPLICATIONS

0001This patent application claims priority from U.S. Provisional Patent Application No. 61/954,434, filed on Mar. 17, 2014; U.S. Provisional Patent Application No. 61/990,017, filed on May 7, 2014; U.S. Provisional Patent Application No. 62/042,676, filed on Aug. 27, 2014; U.S. Provisional Patent Application No. 62/056,100, filed on Sep. 26, 2014; U.S. Provisional Patent Application No. 62/086,669, filed on Dec. 2, 2014 and U.S. Provisional Patent Application No. 62/099,992, filed on Jan. 5, 2015, each of which is incorporated herein by reference in its entirety.

BACKGROUND OF THE INVENTION

00021). Field of the Invention

0003This invention relates to a computer system and method for transacting bitcoin.

00042). Discussion of Related Art

0005The Bitcoin network is a peer-to-peer payment system having a plurality of nodes that are connected to one another. Bitcoin exchange computer systems allow for users to exchange local currency into or out of bitcoin. Users send payments by broadcasting digitally signed messages to the Bitcoin network. Users may, for example, send and receive payments using mobile applications on mobile devices, client software or a web browser.

0006Transactions do not explicitly identify the payor and payee by name or wallet. Instead, a bitcoin transaction transfers ownership to a new address, referred to as a “Bitcoin address”. The Bitcoin address is derived from the public portion of one or more cryptographic key pairs. The private portion of a key pair is not disclosed to the public. To send bitcoin sent to an address, a user broadcasts a payment message that is digitally signed with the associated private key.

0007Participants known as “miners” at miner computer systems verify and timestamp transactions into a shared public database called a “block chain”. The miners are rewarded with transaction fees and newly minted bitcoin for their effort. The miner computer systems are specialized computers that append blocks of transactions to the block chain. Solving a cryptographic puzzle required to append a block carries a reward plus fees included in transactions in the block.

0008Host computer systems reside at various nodes and may host accounts or “wallets” that allow users to make and accept payments using bitcoin. The wallet stores the public key of the Bitcoin address and its associated private key.

0009The transfer of bitcoin may be an onerous task if the entire public key of the Bitcoin address has to be copied and transmitted.

0010When a transaction is made between two wallets at the same or different host computer systems, the transaction is broadcast to the Bitcoin network for block chain verification. Such a block chain verification may take a long time to complete. Miner fees are also associated with such a transfer and have to be paid by a host computer system requesting the transfer.

0011It may be a security concern for users that their Bitcoin addresses may be stolen from their wallets. Existing systems do not provide a solution for maintaining security of Bitcoin addresses while still allowing the users to use Bitcoin addresses within their wallets for transacting with other users.

0012A merchant computer system often has an online store and a website. A customer at a customer computer system may use a browser to access the online store via the website. Items are displayed for purchase in a local currency. Exchange rate between bitcoin and local currency changes over short periods of time. The price in local currency may thus change between the time that the local currency is displayed to the customer and the time that the customer decides to make the purchase. As a result, the customer or the merchant may incur a loss in local currency. The customer or merchant may then be reluctant to purchase using bitcoin.

0013In order for a user to access their wallet, the user may log into their account through the website using a user name and password. If the user name and password become compromised then it may be possible for bitcoin to be stolen out of the wallet. Users may therefore be reluctant to store bitcoin in their wallets without any additional security features.

0014Bitcoin transacting requires the use of a public key and a private key. The private key is used to sign an authorization and the public key is used to verify the signature. Some users may require control over their private keys in order to ensure to such users that bitcoin transacting will not take place without their express authorization.

0015Content creators often put a lot of time and energy into their blog posts. These efforts are rarely rewarded because efficient technology does not exist for rewarding bloggers for their efforts.

SUMMARY OF THE INVENTION

0016The invention provides a host computer system for transacting bitcoin including a processor, a network interface device connected to the processor, a computer readable medium connected to the processor, a data store on the computer readable medium and a set of instructions on the computer readable medium that are executable by the processor. The set of instructions includes a wallet establishment module, a login module, a hosted email module and a wallet management. The wallet establishment module establishes a first wallet in the data store, stores login details for the first wallet and storing a value representative of an amount of bitcoin held by the first wallet. The login module receives login credentials over the network interface device for the first wallet from a first user device, verifies whether the login credentials match the login details for the first wallet, and if the login credentials match the login details then logs the first user device into the first wallet. The hosted email module, if the first user device is logged into the wallet, permits transmission of an email by a user of the first user device to an email address of a second user device. The wallet management module, in response to the transmission of the email, records a transfer in the first wallet for an amount of bitcoin from the first wallet to a second wallet identified by the email address.

0017The invention also provides a method of transacting bitcoin. A processor establishes a first wallet in a data store connected to the processor. The processor stores login details for the first wallet. The processor stores a value representative of an amount of bitcoin held by the first wallet. The processor receives login credentials for the first wallet from a first user device. The processor verifies whether the login credentials match the login details for the first wallet. The processor, if the login credentials match the login details then, logs the first user device into the first wallet. The processor, if the first user device is logged into the wallet, permits transmission of an email by a user to the first user device to an email address of a second user device and in response to the transmission of the email. The processor records a transfer in the first wallet for an amount of bitcoin from the first wallet to a second wallet identified by the email address.

0018The invention further provides a non-transitory computer-readable medium having stored thereon a set of instructions that are executable by a processor to carry out a method of transacting bitcoin. The processor establishes a first wallet in a data store connected to the processor. The processor stores login details for the first wallet. The processor stores a value representative of an amount of bitcoin held by the first wallet. The processor receives login credentials for the first wallet from a first user device. The processor verifies whether the login credentials match the login details for the first wallet. The processor, if the login credentials match the login details then, logs the first user device into the first wallet. The processor, if the first user device is logged into the wallet, permits transmission of an email by a user to the first user device to an email address of a second user device and in response to the transmission of the email. The processor records a transfer in the first wallet for an amount of bitcoin from the first wallet to a second wallet identified by the email address.

0019The invention further provides a first host computer system for transacting bitcoin including a processor at a first node of the Bitcoin network, a network interface device connected to the processor, a computer readable medium connected to the processor, a data store on the computer readable medium and a set of instructions on the computer readable medium that are executable by the processor. The set of instructions includes a wallet establishment module. The wallet establishment module establishes a first and second wallets in the data store and stores a value representative of an amount of bitcoin held by the first wallet. The wallet management module receives, over the network interface device, a first transfer instruction for an amount of bitcoin from the first wallet and an identifier of the second wallet, in response to the first transfer instruction, records a transfer in the first wallet for the amount of bitcoin in the first transfer instruction out of the first wallet and a transfer in the second wallet, identified by the identifier of the second wallet, for the amount of bitcoin in the first transfer instruction into the second wallet without paying a miner's fee for the first transfer. In order to execute a subsequent on-block chain transaction, the wallet management module receives, over the network interface device, a second transfer instruction for an amount of bitcoin from the first wallet and a bitcoin address associated with a second node of the Bitcoin network, and in response to the second transfer instruction, records a transfer in the first wallet for the amount of bitcoin in the second transfer instruction out of the first wallet, broadcasts a message to the Bitcoin network, including to the second node, to record a transfer associated with the bitcoin address associated with the second node, for the amount of bitcoin in the second transfer instruction, and pays a miner's fee for the second transfer.

0020The invention further provides a method of transacting bitcoin including. A processor of a first host computer system at a first node of the Bitcoin network establishes first and second wallets in a data store connected to the processor. The processor stores a value representative of an amount of bitcoin held by the first wallet. The processor receives a first transfer instruction for an amount of bitcoin from the first wallet and an identifier of the second wallet. The processor, in response to the first transfer instruction, records a transfer in the first wallet for the amount of bitcoin in the first transfer instruction out of the first wallet and a transfer in the second wallet, identified by the identifier of the second wallet, for the amount of bitcoin in the first transfer instruction into the second wallet without paying a miner's fee for the first transfer. The processor receives a second transfer instruction for an amount of bitcoin from the first wallet and a bitcoin address associated with a second node of the bitcoin network. The processor, in response to the second transfer instruction records a transfer in the first wallet for the amount of bitcoin in the second transfer instruction out of the first wallet, broadcasts a message to the Bitcoin network, including to the second node, to record a transfer associated with the bitcoin address associated with the second node, for the amount of bitcoin in the second transfer instruction and pays a miner's fee for the second transfer.

0021The invention further provides a non-transitory computer-readable medium having stored thereon a set of instructions that are executable by a processor of a first host computer system at a first node of the Bitcoin network to carry out a method of transacting bitcoin. The processor establishes first and second wallets in a data store connected to the processor. The processor stores a value representative of an amount of bitcoin held by the first wallet. The processor receives a first transfer instruction for an amount of bitcoin from the first wallet and an identifier of the second wallet. The processor, in response to the first transfer instruction, records a transfer in the first wallet for the amount of bitcoin in the first transfer instruction out of the first wallet and a transfer in the second wallet, identified by the identifier of the second wallet, for the amount of bitcoin in the first transfer instruction into the second wallet without paying a miner's fee for the first transfer. The processor receives a second transfer instruction for an amount of bitcoin from the first wallet and a bitcoin address associated with a second node of the bitcoin network. The processor, in response to the second transfer instruction records a transfer in the first wallet for the amount of bitcoin in the second transfer instruction out of the first wallet, broadcasts a message to the Bitcoin network, including to the second node, to record a transfer associated with the bitcoin address associated with the second node, for the amount of bitcoin in the second transfer instruction and pays a miner's fee for the second transfer.

0022The invention also provides a host computer system for transacting bitcoin including a processor, a computer readable medium connected to the processor, a local storage on the computer readable medium and a set of instructions on the computer readable medium that are executable by the processor. The set of instructions includes a register, a Bitcoin address and an associated private key and value stored in the register, a local controller, a splitter, an offline distribution module, at least one restoration interface, and an assembler. The local controller transfers a private key for a Bitcoin address of a vault, to a local storage connected to a processor and transfers the value of the Bitcoin address in the register to the vault. The splitter splits the private key of the Bitcoin address of the vault into a plurality of codes. The offline distribution module distributes the codes to remote distributed storage locations, removes the private key of the Bitcoin address of the vault from the local storage, and removes the value for the Bitcoin address of the register from the Bitcoin address of the register. The restoration interface receives at least some of the codes into which the private key for Bitcoin address of the vault has been split. The assembler assembles the codes that have been received into the private key of the Bitcoin address of the vault. The local controller restores the private key of the Bitcoin address of the vault from the local storage, and restores the value for the Bitcoin address in the register from the vault.

0023The invention further provides a method of transacting bitcoin. A processor transfers a private key of the Bitcoin address of a vault to a local storage connected to the processor. The processor splits the private key of the Bitcoin address of the vault into a plurality of codes. The processor distributes the codes to remote distributed storage locations. The processor transfers a value of a Bitcoin address in a register to the vault. The processor receives at least some of the codes into which the private key of the Bitcoin address of the vault has been split. The processor assembles the codes that have been received into the private key of the Bitcoin address of the vault. The processor restores the private key of the Bitcoin address of the vault to the vault. The processor restores the value of the Bitcoin address in the register from the vault.

0024The invention also provides a non-transitory computer-readable medium having stored thereon a set of instructions that are executable by a processor to carry out a method of transacting bitcoin. A processor transfers a private key of the Bitcoin address of a vault to a local storage connected to the processor. The processor splits the private key of the Bitcoin address of the vault into a plurality of codes. The processor distributes the codes to remote distributed storage locations. The processor transfers a value of a Bitcoin address in a register to the vault. The processor receives at least some of the codes into which the private key of the Bitcoin address of the vault has been split. The processor assembles the codes that have been received into the private key of the Bitcoin address of the vault. The processor restores the private key of the Bitcoin address of the vault to the vault. The processor restores the value of the Bitcoin address in the register from the vault.

0025The invention further provides a host computer system for transacting bitcoin including a processor, a network interface device connected to the processor, a computer readable medium connected to the processor, a local storage on the computer readable medium and a set of instructions on the computer readable medium that are executable by the processor. The set of instructions includes a wallet, a plurality of Bitcoin addresses stored in the wallet, a first vault, and a local controller. The local controller is executable for selecting a first transfer set of the Bitcoin addresses for cold storage in the first vault, transferring at least a portion of each of the Bitcoin addresses of the first transfer set to a first vault while keeping the portions a first transaction set in the register, and restoring at least the portion of the Bitcoin addresses of the first transfer set from the first vault to the wallet and a wallet management module transacting using the Bitcoin addresses of the first transacting set without permitting transacting with the Bitcoin addresses of the first transfer set due to the portions thereof being restored to the first vault, and transacting using the Bitcoin addresses of the first transfer set due to the portions thereof being restored from the first vault to the wallet.

0026The invention also provides a method of transacting bitcoin. A processor stores a plurality of Bitcoin addresses in a wallet. The processor selects a first transfer set of the Bitcoin addresses for cold storage in a first vault. The processor transfers at least a portion of each of the Bitcoin addresses of the first transfer set to the first vault while keeping the portions a first transaction set in the register. The processor transacts using the Bitcoin addresses of the first transacting set without permitting transacting with the Bitcoin addresses of the first transfer set due to the portions thereof being transferred to the first vault. The processor restores the portion of the Bitcoin addresses of the first transfer set from the first vault to the wallet. The processor transacts using the Bitcoin addresses of the first transfer set due to the portions thereof being restored from the first vault to the wallet.

0027The invention further provides a non-transitory computer-readable medium having stored thereon a set of instructions that are executable by a processor to carry out a method of transacting. A processor stores a plurality of Bitcoin addresses in a wallet. The processor selects a first transfer set of the Bitcoin addresses for cold storage in a first vault. The processor transfers at least a portion of each of the Bitcoin addresses of the first transfer set to the first vault while keeping the portions a first transaction set in the register. The processor transacts using the Bitcoin addresses of the first transacting set without permitting transacting with the Bitcoin addresses of the first transfer set due to the portions thereof being transferred to the first vault. The processor restores the portion of the Bitcoin addresses of the first transfer set from the first vault to the wallet. The processor transacts using the Bitcoin addresses of the first transfer set due to the portions thereof being restored from the first vault to the wallet.

0028The invention also provides a method of effecting payment including receiving, by a host computer system, a request for payment from a merchant computer system, including an amount in a currency, determining, by the host computer system, a first exchange rate, wherein the first exchange rate fluctuates and the first exchange rate is determined at a first moment in time, converting, by the host computer system, the amount in the currency to an amount in bitcoin using the first exchange rate at the first moment in time, receiving, by the host computer system, a send instruction from the customer computer system, wherein the send instruction is at a second moment in time later than the first moment in time and the exchange rate at the second moment in time is a second exchange rate that is different than the first exchange rate at the first moment in time, receiving, by the host computer system, payment in bitcoin from the customer in an amount that is based on the amount in bitcoin and transmitting, by the host computer system, in response to receiving the send instruction from the customer computer system, a payment instruction to pay currency to the merchant, wherein the currency paid to the merchant is for an amount that is at least in part based on the amount in the currency that is converted to bitcoin at the first moment in time even though the exchange rate is different at the second moment in time.

0029The invention further provides a host computer system for effecting payment including a processor, a computer readable medium connected to the processor and a set of instructions on the computer readable medium that are executable by the processor. The set of instructions includes an application programmable interface (API) receiving a request for payment from a merchant computer system, including an amount in a currency, a currency converter determining a first exchange rate, wherein the first exchange rate fluctuates and the first exchange rate is determined at a first moment in time, and converting, by the host computer system, the amount in the currency to an amount in bitcoin using the first exchange rate at the first moment in time, transaction processor receiving a send instruction from the customer computer system, wherein the send instruction is at a second moment in time later than the first moment in time and the exchange rate at the second moment in time is a second exchange rate that is different than the first exchange rate at the first moment in time, and receiving a payment in bitcoin from the customer in an amount that is based on the amount in bitcoin and a bank transfer module transmitting in response to receiving the send instruction from the customer computer system, a payment instruction to pay currency to the merchant, wherein the currency paid to the merchant is for an amount that is at least in part based on the amount in the currency that is converted to bitcoin at the first moment in time even though the exchange rate is different at the second moment in time.

0030The invention also provides a non-transitory computer-readable medium having stored thereon a set of instructions that are executable by a processor to carry out a method of transacting bitcoin including receiving, by a host computer system, a request for payment from a merchant computer system, including an amount in a currency, determining, by the host computer system, a first exchange rate, wherein the first exchange rate fluctuates and the first exchange rate is determined at a first moment in time, converting, by the host computer system, the amount in the currency to an amount in bitcoin using the first exchange rate at the first moment in time, receiving, by the host computer system, a send instruction from the customer computer system, wherein the send instruction is at a second moment in time later than the first moment in time and the exchange rate at the second moment in time is a second exchange rate that is different than the first exchange rate at the first moment in time, receiving, by the host computer system, payment in bitcoin from the customer in an amount that is based on the amount in bitcoin and transmitting, by the host computer system, in response to receiving the send instruction from the customer computer system, a payment instruction to pay currency to the merchant, wherein the currency paid to the merchant is for an amount that is at least in part based on the amount in the currency that is converted to bitcoin at the first moment in time even though the exchange rate is different at the second moment in time.

0031The invention further provides a method of managing bitcoin, including establishing, by a host computer system, a vault and storing first and second electronic communication addresses in relation to the vault, storing, by the host computer system, bitcoin in the vault, receiving, by the host computer system, a request to transfer an amount of the bitcoin out of the vault, transmitting, by the host computer system, in response to the request, first and second messages over a network to the first and second addresses, detecting, by the host computer system, whether first and second authorization instructions are received due to one or more users reacting to the first and second messages sent to the first and second addresses and transferring, by the host computer system, the amount of bitcoin out of the vault only if both the first and second authorization instructions are detected.

0032The invention also provides a non-transitory computer-readable medium having stored thereon a set of instructions which, when executed by a processor, executes a method including establishing, by a host computer system, a vault and storing first and second electronic communication addresses in relation to the vault, storing, by the host computer system, bitcoin in the vault, receiving, by the host computer system, a request to transfer an amount of the bitcoin out of the vault, transmitting, by the host computer system, in response to the request, first and second messages over a network to the first and second addresses, detecting, by the host computer system, whether first and second authorization instructions are received due to one or more users reacting to the first and second messages sent to the first and second addresses and transferring, by the host computer system, the amount of bitcoin out of the vault only if both the first and second authorization instructions are detected.

0033The invention further provides a bitcoin management system, including a processor, a computer-readable medium connected to the processor and a set of instructions on the computer readable medium that are executable by the processor. The set of instructions includes a vault establishment wizard establishing a vault and storing first and second electronic communication addresses in relation to the vault, transaction processor storing bitcoin in the vault and a vault management module receiving a request to transfer an amount of the bitcoin out of the vault, transmitting, in response to the request, first and second messages over a network to the first and second addresses, detecting whether first and second authorization instructions are received due to one or more users reacting to the first and second messages sent to the first and second addresses, and instructing the transaction processor to transfer the amount of bitcoin out of the vault only if both the first and second authorization instructions are detected.

0034The invention also provides a method of transacting bitcoin including storing, by a host computer system, a public key, receiving, by the host computer system, a request from a user computer system to transact using a bitcoin address, transmitting, by the host computer system, a verification script to the user computer system, the verification script including an authorization and a signature algorithm that is executable on the user computer system to sign the authorization with a private key to obtain a signed authorization that includes the signature and transmit the signed authorization to the host computer system, receiving, by the host computer system, the signed authorization including the signature from the user computer system, verifying, by the host computer system, the signature of the signed authorization received from the user computer system using a public key; and transacting, by the host computer system, with the bitcoin address, the transacting being permitted due to a successful verification of the signature but not upon an unsuccessful verification of the signature.

0035The invention further provides a host computer system including a processor, a set of data and instructions on the computer-readable medium that are executable by the processor that are executable by the processor, a public key, a transaction processor receiving a request from a user computer system to transact using a bitcoin address, a verification script that is transmitted to the user computer system, the verification script including an authorization and a signature algorithm that is executable on the user computer system to sign the authorization with a private key to obtain a signed authorization that includes the signature and transmit the signed authorization to the host computer system, the host computer system receiving the signed authorization including the signature from the user computer system, and a verification module verifying the signature of the signed authorization received from the user computer system using a public key, the transaction processor transacting with the bitcoin address, the transacting being permitted due to a successful verification of the signature but not upon an unsuccessful verification of the signature.

0036The invention also provides a host computer system including a processor, a network interface device connected to the processor, a computer readable medium connected to the processor and a set of instructions on the computer readable medium that are readable and executable by the processor. The set of instructions include an embedded code generator generating an embedded code for inclusion within a website of a partner computer system, the embedded code including a startup caller causing transmission of a startup call from the sender computer system to the host computer system, a startup call responder receiving the startup call from the sender computer system and transmitting, in response to the startup call, a tip button and a session script to the sender computer system, the session script being executable by the sender computer system to transmit a session call to the host computer system and a session responder transmitting, in response to the session call, at least one payment button and a payment script to the sender computer system, the payment button being selectable by the user of the sender computer system to execute the payment script, the payment script transmitting an instruction to a transaction processor to transfer funds from a sender account to a receiver account.

0037The invention further provides a method of transferring funds including generating, by a host computer system, an embedded code for inclusion within a website of a partner computer system, the embedded code including a startup caller causing transmission of a startup call from the sender computer system to the host computer system, receiving, by the host computer system, the startup call from the sender computer system, transmitting, by the host computer system in response to the startup call, a tip button and a session script to the sender computer system, the session script being executable by the sender computer system to transmit a session call to the host computer system and transmitting, by the host computer system in response to the session call, at least one payment selection and a payment script to the sender computer system, the payment selection being selectable by the user of the sender computer system to execute the payment script, the payment script transmitting an instruction to a transaction processor to transfer funds from a sender account to a receiver account.

0038The invention also provides a method of transacting bitcoin including executing, by a host computer system, a trading algorithm, including receiving sell offers for bitcoin from a sellers, receiving a buy offers for bitcoin from a buyers, creating respective matches wherein each match includes one of the buy offers and one of the sell offers, broadcasting each respective match over a multicast pipeline, receiving each respective match with a clearing module and clearing the respective match by updating an exchange database to reflect the respective match by transferring a representation of bitcoin from the seller to the buyer and transferring a representation of currency from the buyer to the seller.

0039The invention further provides a system for transacting bitcoin including an order gateway receiving sell offers for bitcoin from a sellers and receiving a buy offers for bitcoin from a buyers, a matching engine creating respective matches wherein each match includes one of the buy offers and one of the sell offers, a multicast pipeline, the matching engine broadcasting each respective match over the multicast pipeline, an exchange database; and a clearing module receiving each respective and clearing the respective match by updating the exchange database to reflect the respective match by transferring a representation of bitcoin from the seller to the buyer and transferring a representation of currency from the buyer to the seller, thereby executing a trading algorithm.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention is further described by way of example with reference to the accompanying drawings, wherein:

<figref idref="DRAWINGS">FIG. 1A</figref> is a block diagram of a network environment that includes the Bitcoin network and a number of systems forming part thereof or connected thereto;

<figref idref="DRAWINGS">FIG. 1B</figref> is a block diagram of a first host computer system and a first and second user devices connected thereto;

<figref idref="DRAWINGS">FIG. 2</figref> is diagrammatic view of a first wallet that is held within a first host computer system in <figref idref="DRAWINGS">FIG. 1</figref>;

<figref idref="DRAWINGS">FIG. 3</figref> is a view similar to <figref idref="DRAWINGS">FIG. 2</figref>, further illustrating a second wallet that has been established within the first host computer system;

<figref idref="DRAWINGS">FIG. 4</figref> is a view of an email that is received by the second user device in <figref idref="DRAWINGS">FIG. 1</figref>;

<figref idref="DRAWINGS">FIG. 5</figref> is a view of a browser displaying a user interface with fields for creating login details for the second wallet;

<figref idref="DRAWINGS">FIGS. 6 to 30</figref> are views similar to <figref idref="DRAWINGS">FIG. 5</figref> that step a user of the second user device through a wallet set up;

<figref idref="DRAWINGS">FIGS. 31 to 33</figref> are views of the browser wherein the user interface discloses various tools that can be used by the user;

<figref idref="DRAWINGS">FIGS. 34 to 37</figref> are views of the browser wherein the user interface is used by the user to purchase bitcoin from the first host computer system;

<figref idref="DRAWINGS">FIG. 38</figref> is an email that is received by the second user device to confirm the purchase of the bitcoin from the first host computer system;

<figref idref="DRAWINGS">FIG. 39</figref> is an email that is received by the second user device with a notification that bitcoin has been added to their wallet as part of a referral bonus system;

<figref idref="DRAWINGS">FIG. 40</figref> is a view of the browser wherein the user interface displays “Limits and Verifications” associated with the second wallet;

<figref idref="DRAWINGS">FIG. 41</figref> is a view similar to <figref idref="DRAWINGS">FIG. 3</figref> displaying transfer of bitcoin from the second wallet to the first wallet;

<figref idref="DRAWINGS">FIGS. 42 and 43</figref> are views of the browser when the user interface steps the user through the transfer of bitcoin from the second wallet to the first wallet;

<figref idref="DRAWINGS">FIG. 44</figref> is a view of the browser wherein the user interface displays Bitcoin addresses associated with transactions that have been completed;

<figref idref="DRAWINGS">FIG. 45</figref> is a view similar to <figref idref="DRAWINGS">FIG. 40</figref> further showing the transfer of bitcoin from the second wallet to a third wallet that is connected to a second host computer system;

<figref idref="DRAWINGS">FIG. 46</figref> is a block diagram illustrating splitting of a private key of a vault and offline distribution;

<figref idref="DRAWINGS">FIG. 47</figref> is a block diagram illustrating removal of the private key of the vault;

<figref idref="DRAWINGS">FIG. 48</figref> is a block diagram illustrating offline or “cold” storage of values of Bitcoin addresses of a wallet in the vault;

<figref idref="DRAWINGS">FIG. 49</figref> is a block diagram illustrating isolation of the vault with its private key removed;

<figref idref="DRAWINGS">FIG. 50</figref> is a block diagram illustrating how the private key of the vault and the value of the Bitcoin addresses are restored;

<figref idref="DRAWINGS">FIGS. 51</figref><i>a </i>to <b>51</b><i>d </i>are block diagrams that illustrate how values of certain Bitcoin addresses in a wallet are removed and others are maintained;

<figref idref="DRAWINGS">FIG. 52</figref> is a graph illustrating how the wallet is maintained within a range so that only a portion of the wallet is “hot” in the sense that a user of the wallet can use the “hot” portion for transacting with another user;

<figref idref="DRAWINGS">FIG. 53</figref> is a block diagram that shows how an intermediate hot wallet is used to collect value from multiple wallets before transfer to a vault;

<figref idref="DRAWINGS">FIG. 54</figref> is a block diagram of a network environment that includes a customer computer system and merchant computer system;

<figref idref="DRAWINGS">FIG. 55</figref> is a block diagram illustrating functioning for purposes of locking an exchange rate in when processing a transaction made by the customer computer system on the merchant computer system in <figref idref="DRAWINGS">FIG. 54</figref>;

<figref idref="DRAWINGS">FIG. 56</figref> is a flow chart illustrating the establishment of a personal vault;

<figref idref="DRAWINGS">FIG. 57</figref> is a flow chart illustrating how bitcoin is transferred into and out of the vault;

<figref idref="DRAWINGS">FIG. 58</figref> is a block diagram of the first host computer system illustrating components that are used for establishing the vault and transferring bitcoin into and out of the vault;

<figref idref="DRAWINGS">FIG. 59</figref> is an email that is transmitted to verify a secondary email address;

<figref idref="DRAWINGS">FIG. 60</figref> is a view of a browser wherein a user interface displays options for transferring bitcoin out of a vault;

<figref idref="DRAWINGS">FIGS. 61 and 62</figref> are emails that are transmitted to primary and secondary email addresses to approve a withdrawal;

<figref idref="DRAWINGS">FIG. 63</figref> is a view of the browser with the user interface displaying a transaction status window;

<figref idref="DRAWINGS">FIG. 64</figref> is a block diagram illustrating the establishment of a user-controlled vault;

<figref idref="DRAWINGS">FIG. 65</figref> is a block diagram illustrating the user of the user-controlled vault for authorizing a transaction;

<figref idref="DRAWINGS">FIG. 66</figref> is a block diagram of an address generator that is used by the user-controlled vault;

<figref idref="DRAWINGS">FIG. 67</figref> to <figref idref="DRAWINGS">FIG. 71</figref> are a block diagrams illustrating the functioning of a tip button;

<figref idref="DRAWINGS">FIG. 72</figref> is a block diagram of a system for transacting bitcoin according to an embodiment of the invention;

<figref idref="DRAWINGS">FIGS. 73</figref><i>a </i>to <b>73</b><i>f </i>illustrate the use of the system of <figref idref="DRAWINGS">FIG. 72</figref> for executing transfer-in, trading and withdrawal algorithms; and

<figref idref="DRAWINGS">FIG. 74</figref> is a block diagram of a machine in the form of a computer system forming part of the network environment.

DETAILED DESCRIPTION OF THE INVENTION

0081<figref idref="DRAWINGS">FIG. 1A</figref> of the accompanying drawings illustrates a network environment <b>10</b>, including the Bitcoin network <b>12</b>, a first host computer system <b>14</b> within which the invention manifests itself, a second host computer system <b>16</b>, first and second user devices <b>18</b> and <b>20</b> connected over the Internet <b>22</b> to the first host computer system <b>14</b>, a third user device <b>24</b> connected to the second host computer system <b>16</b>, a bitcoin exchange computer system <b>26</b> and a miner computer system <b>28</b>.

0082The Bitcoin network <b>12</b> includes a host node <b>30</b> and a plurality of remote nodes <b>32</b>A to D that are connected to one another. The first host computer system <b>14</b> is connected to the host node <b>30</b>. The bitcoin exchange computer system <b>26</b> is connected to the remote node <b>32</b>A. The second host computer system <b>16</b> is connected to the remote node <b>32</b>B. The miner computer system <b>28</b> is connected to the remote node <b>32</b>D or could reside on the same computer system.

0083The first host computer system <b>14</b> is used primarily for transacting bitcoin and, as shown in <figref idref="DRAWINGS">FIG. 1B</figref>, includes a website <b>34</b> having a user interface <b>36</b>, a login module <b>38</b>, a wallet establishment module <b>40</b>, a plurality of wallets <b>42</b>, a wallet management module <b>44</b> and a hosted email module <b>46</b>. The login module <b>38</b> is connected to the website <b>34</b> and the hosted email module <b>46</b> is connected to the login module <b>38</b>. The wallet establishment module <b>40</b> is connected to the wallets <b>42</b>. The hosted email module <b>46</b> is connected via the wallet management module <b>44</b> to the wallets <b>42</b>. As illustrated in the drawing, the first user device <b>18</b> is connected over the Internet <b>22</b> and the user interface <b>36</b> to the login module <b>38</b>. As further illustrated in the drawing, the hosted email module <b>46</b> is connected over the Internet <b>22</b> to the second user device <b>20</b> and the second user device <b>20</b> is connected over the Internet <b>22</b> and the user interface <b>36</b> to the wallet establishment module <b>40</b>.

0084As shown in <figref idref="DRAWINGS">FIG. 2</figref>, the first host computer system <b>14</b> already has one wallet (Wallet A) stored among the wallets <b>42</b> corresponding to the first user device <b>18</b>. The first wallet (Wallet A) includes an email address (email address A) and login details for the wallet. The first wallet (Wallet A) also includes a number of Bitcoin addresses (Bitcoin address 1; Bitcoin address 2) that have been created due to respective transfers or purchases (Transfer 1; Transfer 2). The first Bitcoin address (Bitcoin address 1) is created due to a purchase (Transfer 1) from a master wallet of the first host computer system <b>14</b> (First Host) and is recorded for a value in an amount in bitcoin. The second Bitcoin address (Bitcoin address 2) is created due to a transfer (Transfer 2) from another location within the Bitcoin network <b>12</b> having a network address outside of the first host computer system <b>14</b> and is recorded for a particular amount in bitcoin. The first wallet (Wallet A) was originally established by the wallet establishment module <b>40</b> in <figref idref="DRAWINGS">FIG. 1B</figref>. The email address (email address A) and login details of the first wallet were also recorded by the wallet establishment module <b>40</b>. The wallet establishment module <b>40</b> and wallet management module <b>44</b> were used to record the transfers and purchases (Transfer 1; Transfer 2), their Bitcoin addresses (Bitcoin address 1; Bitcoin address 2), their values and other details within the wallet.

0085A user of the first user device <b>18</b> in <figref idref="DRAWINGS">FIG. 1B</figref> may use a mobile application on the first user device <b>18</b> to communicate over the Internet <b>22</b> directly with the login module <b>38</b> or may use a browser on the first user device <b>18</b> to communicate via the Internet <b>22</b> and the website <b>34</b> with the login module <b>38</b>. A browser application on the first user device <b>18</b> transmits a user interface request over the Internet <b>22</b> to the website <b>34</b>. The website <b>34</b> responds to the user interface request by transmitting the user interface <b>36</b> over the Internet <b>22</b> to the first user device <b>18</b>. The user interface <b>36</b> is then displayed on the first user device <b>18</b>. The user interface <b>36</b> includes fields for entering login credentials, which are then transmitted from the first user device <b>18</b> over the Internet <b>22</b> to the login module <b>38</b>. The login module <b>38</b> verifies whether the login credentials match the login details for the wallet (Wallet A). If the login credentials match the login details, then the login module <b>38</b> logs the first user device <b>18</b> into the wallet (Wallet A) in <figref idref="DRAWINGS">FIG. 2</figref>. If the login credentials do not match the login details, then the first user device <b>18</b> is not logged in to the wallet.

0086If the first user device <b>18</b> in <figref idref="DRAWINGS">FIG. 1B</figref> is logged in to the wallet, the login module <b>38</b> also provides access for the first user device <b>18</b> to the hosted email module <b>46</b> and transmission of an email by a user of the first user device <b>18</b> to an email address of the second user device <b>20</b>. The user interface <b>36</b> provides a field for entering the email address of the second user device <b>20</b>. The user interface <b>36</b> also includes a field for entering an amount in bitcoin (or an amount in local currency that is converted to bitcoin using an exchange rate) that is being transferred from the wallet (Wallet A) corresponding to the first user device <b>18</b> to a respective wallet among the wallets <b>42</b> corresponding to the second user device <b>20</b> that has not yet been established at this point in time. The user of the first user device <b>18</b> then uses the hosted email module <b>46</b> to send an email at <b>50</b> to the second user device <b>20</b>. The hosted email module <b>46</b> simultaneously at <b>52</b> instructs the wallet establishment module <b>40</b> to establish a wallet corresponding to the email address within the wallets <b>42</b>. The hosted email module <b>46</b> simultaneously instructs the wallet management module <b>44</b> to record the amount of bitcoin that is being transferred from the wallet (Wallet A) within the wallet corresponding to the email address.

0087<figref idref="DRAWINGS">FIG. 3</figref> illustrates further activity within the wallets <b>42</b> due to the email represented by a third transfer (Transfer 3). When the user of the first wallet (Wallet A) transmits the email, the system uses an existing Bitcoin address (Bitcoin address 2) to which the outgoing transfer is charged. Associated with the transfer (Transfer 3) are the email address to which the email has been transmitted, the amount in bitcoin, a miner's fee of zero bitcoin that is paid by the first host computer system <b>14</b> to any miner computer system such as the miner computer system <b>28</b> in <figref idref="DRAWINGS">FIG. 1A</figref>, and a host fee of zero bitcoin that are charged to the wallet (Wallet A) for the transfer. A second wallet (Wallet B) is established by the wallet establishment module <b>40</b> and the email address (email address B) of the second user device <b>20</b> is recorded as an identifier of the wallet (Wallet B). A Bitcoin address (Bitcoin address 3) is recorded within the second wallet (Wallet B) for the transfer (Transfer 3). Within the second wallet (Wallet B), the transfer (Transfer 3) has the Bitcoin address (Bitcoin address 3), the identifier of the wallet (Wallet A) from where the funds are transferred associated therewith, and the amount in bitcoin that has been transferred. The amount in bitcoin corresponding to the transfer (Transfer 3) of both wallets (Wallet A; Wallet B) is the same, consistent with double entry accounting principles. The second wallet (Wallet B) so far has no login details or any other user information and has not been accessed by a user of the second user device <b>20</b> at this point in time.

0088<figref idref="DRAWINGS">FIG. 4</figref> illustrates the email when it is received at the second user device <b>20</b> in <figref idref="DRAWINGS">FIG. 1B</figref>. The email is received and viewed within an email application on the second user device <b>20</b>. The email includes a link (“Click here to sign in and claim this amount”) that, when selected by the user of the second user device <b>20</b>, transmits a user interface request from the browser on the second user device <b>20</b> over the Internet <b>22</b> to the website <b>34</b>. The website <b>34</b> responds to the user interface request to transmit the user interface <b>36</b> over the Internet <b>22</b> to the second user device <b>20</b> for viewing within the browser.

0089<figref idref="DRAWINGS">FIG. 5</figref> illustrates the user interface <b>36</b> as displayed on the second user device <b>20</b> in <figref idref="DRAWINGS">FIG. 1B</figref>. The user interface <b>36</b> includes a plurality of fields for the user of the second user device <b>20</b> to enter login details for the second wallet (Wallet B), including a password and a confirmation of the password. After the user has entered a password, the user can access their wallet by selecting the button “Access My Wallet”. The wallet establishment module <b>40</b> in <figref idref="DRAWINGS">FIG. 1B</figref> stores the login credentials in association with the second wallet (Wallet B). The login module <b>38</b> also logs the second user device <b>20</b> into the second wallet (Wallet B). If the user is logged out, the user can be provided with a login page where the user can enter login credentials that are compared with the login details in the second wallet (Wallet B) and then log into the second wallet (Wallet B) following a favorable match between the login credentials and the login details.

0090<figref idref="DRAWINGS">FIG. 6</figref> shows a view that is displayed on the second user device <b>20</b> in <figref idref="DRAWINGS">FIG. 1B</figref>. The user is already logged into the wallet, as shown in the top right. The user can accept or decline an agreement. <figref idref="DRAWINGS">FIG. 7</figref> displays the first page that is displayed to the user following acceptance of the agreement. The page shows the current balance corresponding to the amount of bitcoin at the Bitcoin address (Bitcoin address 4) in <figref idref="DRAWINGS">FIG. 3</figref>. The user can select various tools down the left margin, including sending or requesting bitcoin, buying or selling bitcoin, account settings and various merchant tools. <figref idref="DRAWINGS">FIG. 8</figref> illustrates a view that is displayed to the user if the user selects the “Buy/Sell” link in <figref idref="DRAWINGS">FIG. 7</figref>. The user is prompted to add a bank account. <figref idref="DRAWINGS">FIGS. 9 through 15</figref> step the user through the entry of bank account details and verification of the bank account. The user can also select a credit card as a backup payment. <figref idref="DRAWINGS">FIGS. 16 to 19</figref> step the user through the entry of a credit card number and a billing address, and <figref idref="DRAWINGS">FIGS. 20 and 21</figref> step the user through a verification process to verify that the user is in control of the credit card account. <figref idref="DRAWINGS">FIGS. 22 and 23</figref> request additional information from the user. <figref idref="DRAWINGS">FIG. 23</figref> also allows the user to verify a phone at a phone number and <figref idref="DRAWINGS">FIGS. 24 through 27</figref> step the user through a process for verifying their phone and phone number. <figref idref="DRAWINGS">FIGS. 28 through 30</figref> illustrate a process for verifying an identity of the user of the second user device <b>20</b>. As illustrated in <figref idref="DRAWINGS">FIGS. 31 to 33</figref>, the top margin within the account settings allow for additional tools such as referrals (<figref idref="DRAWINGS">FIG. 31</figref>), viewing of Bitcoin addresses (<figref idref="DRAWINGS">FIG. 32</figref>), and integration with an application programmable interface (<figref idref="DRAWINGS">FIG. 33</figref>).

0091<figref idref="DRAWINGS">FIG. 34</figref> illustrates a process that is initiated by the user to purchase bitcoin from a wallet of the first host computer system <b>14</b>. In the present example, the user selects one (1) bitcoin (BTC) to purchase. <figref idref="DRAWINGS">FIGS. 35 and 36</figref> step the user through the process of purchasing the bitcoin. Once the bitcoin is purchased, the user can select on “History” tab in the top margin to display a view as shown in <figref idref="DRAWINGS">FIG. 37</figref> wherein the transaction is displayed and is marked as “PENDING”.

0092<figref idref="DRAWINGS">FIG. 38</figref> shows an email that is transmitted by the hosted email module <b>46</b> in <figref idref="DRAWINGS">FIG. 1B</figref> to the second user device <b>20</b> to confirm the purchase of the bitcoin following selection of a “Confirm” button in <figref idref="DRAWINGS">FIG. 35</figref>. The email also has a link that, when selected by the user, opens the browser on the second user device <b>20</b> and allows the user to login to their wallet and view the transaction.

0093<figref idref="DRAWINGS">FIG. 39</figref> shows an email that is transmitted by the hosted email module <b>46</b> in <figref idref="DRAWINGS">FIG. 1B</figref> to the second user device <b>20</b> with a notification that bitcoin has been added to their wallet as part of a referral bonus system.

0094<figref idref="DRAWINGS">FIG. 40</figref> illustrates a view that is displayed when the user selects a “Limits and Verifications” tab in the top margin of the “Buy/Sell” page.

0095When the user selects the “Send/Request” link in the left margin in <figref idref="DRAWINGS">FIG. 40</figref>, the user is provided an option to send bitcoin from their wallet (Wallet B) in <figref idref="DRAWINGS">FIG. 3</figref> to another wallet (e.g. the first wallet (Wallet A)) in <figref idref="DRAWINGS">FIG. 3</figref>.

0096<figref idref="DRAWINGS">FIG. 41</figref> illustrates further transfers or purchases (Transfer 4; Transfer 5; Transfer 6). The fourth transfer (Transfer 4) represents the purchase of bitcoin from the first host computer system's <b>14</b> master wallet.

0097The fifth transfer (Transfer 5) represents the transfer of bitcoin from the second wallet (Wallet B) to the first wallet (Wallet A). The second wallet (Wallet B) now has login details stored therein. If the second user device <b>20</b> in <figref idref="DRAWINGS">FIG. 1B</figref> has been logged out of the second wallet (Wallet B), then the second user device <b>20</b> is first directed to the login module <b>38</b> which receives login details for the second wallet (Wallet B) from the second user device <b>20</b>, verifies whether the login credentials for the second wallet (Wallet B) match the login details for the second wallet (Wallet B). If the login details match the login credentials, then the login module <b>38</b> logs the second user device <b>20</b> into the second wallet (Wallet B).

0098The login module <b>38</b> then provides the second user device <b>20</b> with access to the hosted email module <b>46</b>. The user of the second user device <b>20</b> then enters the email address (email address A) of the user of the first wallet (Wallet A) and an amount of bitcoin that the user of the second user device <b>20</b> wishes to transfer from the second wallet (Wallet B) to the first wallet (Wallet A). The user of the second user device <b>20</b> then uses the hosted email module <b>46</b> to send an email via the Internet <b>22</b> to the first user device <b>18</b>. As soon as the email is sent, a transfer (Transfer 5) is recorded within the second wallet (Wallet B). Because one of the Bitcoin addresses (Bitcoin address 4) has funds associated therewith, it can be charged for the transfer (Transfer 4). Within the second wallet (Wallet B) the transfer (Transfer 4) has the email address (email address A) to which the email has been sent and the amount in bitcoin associated therewith.

0099As indicated, the miner's fee that is paid by the first host computer system <b>14</b> and the host fee that is charged for the transfer are zero bitcoin because the first wallet (Wallet A) is stored within the wallets <b>42</b> of the first host computer system <b>14</b>. The user of the first user device <b>18</b> receives the email indicating the transfer of bitcoin to their wallet (Wallet A). A Bitcoin address (Bitcoin address 5) is recorded within the first wallet (Wallet A) for the transfer (Transfer 5) together with the identifier of the second wallet (Wallet B) from which the transfer has been made and the amount in bitcoin. The amount in bitcoin corresponding to the transfer (Transfer 4) in the second wallet (Wallet B) is the same as the amount in bitcoin as in the first wallet (Wallet A).

0100As illustrated by the next transfer (Transfer 6), the user of the second wallet (Wallet B) can opt to send bitcoin to a Bitcoin address of the first wallet (Wallet A). The transfer (Transfer 6) is the same as the preceding transfer (Transfer 5) in all other respects.

0101<figref idref="DRAWINGS">FIG. 42</figref> shows a view that is displayed to the user of the second user device <b>20</b> in <figref idref="DRAWINGS">FIG. 1B</figref> in order to make the transfer from their wallet (Wallet B) to the first wallet (Wallet A). The view includes a field for the user to enter the email address (email address A) and fields for entering either an amount in bitcoin (BTC) or an amount in a local currency (USD—United States Dollar). The exchange rate between bitcoin and the local currency is shown in the top left corner. The view also includes a button “Send Money” which, when selected by the user, initiates the transfer of bitcoin.

0102<figref idref="DRAWINGS">FIG. 43</figref> is a view that is displayed to the user indicating transactions that have been initiated or completed. The purchase of bitcoin discussed with reference to <figref idref="DRAWINGS">FIGS. 35 to 37</figref> is shown as “PENDING”. A block chain verification notice has to be broadcast by the miner computer system <b>28</b> and be received by the first host computer system <b>14</b> in <figref idref="DRAWINGS">FIG. 1A</figref> before a determination is made to change the marker “PENDING” to “COMPLETE”. The other transactions representing transfers between the first and second wallets (Wallet A and Wallet B) in <figref idref="DRAWINGS">FIG. 41</figref> are shown as completed because they do not need block chain verification outside of the first host computer system <b>14</b>. No block chain verification notice is thus required for these transactions to be marked “COMPLETE”. <figref idref="DRAWINGS">FIG. 44</figref> shows a view that can be selected by the user by selecting a tab in the top margin wherein the user is shown the Bitcoin addresses associated with transactions that have been completed.

0103<figref idref="DRAWINGS">FIG. 45</figref> illustrates a further transaction (Transfer 7) wherein bitcoin is transferred from the second wallet (Wallet B) to a third wallet (Wallet C) held by the second host computer system <b>16</b> in <figref idref="DRAWINGS">FIG. 1A</figref>. The user of the second user device <b>20</b> enters a bitcoin address (Bitcoin address 6) that is located in the third wallet (Wallet C) and an amount of bitcoin to be transferred to the third wallet (Wallet C). A transfer (Transfer 7) is recorded within the second wallet (Wallet B). Associated with the transfer (Transfer 7) are the Bitcoin address (Bitcoin address 6), the amount in bitcoin that is being transferred and a miner's fee that is charged for the transfer and has to be paid by the first host computer system <b>14</b> to the miner computer system <b>28</b> in <figref idref="DRAWINGS">FIG. 1A</figref>. No fee is charged by the first host computer system <b>14</b> for a transfer to another Bitcoin address.

0104When the user of the second user device <b>20</b> in <figref idref="DRAWINGS">FIG. 1A</figref> completes the purchase, a transfer instruction is created and is broadcast via the host node <b>30</b> to all remote nodes <b>32</b>A-D within the Bitcoin network <b>12</b>. The transfer instruction thus traverses the first node and the second remote node <b>32</b>B to reach the second host computer system <b>16</b>. The second host computer system <b>16</b> and all other computer systems connected to the remote nodes <b>32</b>A-D record the transfer (Transfer 7) with respect to the Bitcoin addresses (Bitcoin address 4; Bitcoin address 6). The transfer (Transfer 7) has associated therewith the amount in bitcoin.

0105The transfer instruction that results in the transfer (Transfer 5) thus results in no miner's fee being charged to and paid by the first host computer system <b>14</b>. No host fee is charged to the second wallet (Wallet B) because the transfer (Transfer 7) is made to another wallet (Wallet A) within the wallets <b>42</b> of the first host computer system <b>14</b>. By contrast, the transfer instruction that results in the transfer (Transfer 7) representing the transfer to the Bitcoin address (Bitcoin address 6) in the third wallet (Wallet C) results in a miner's fee that is paid by the first host computer system <b>14</b> to the miner computer system <b>28</b>. The miner computer system <b>28</b> is responsible for verifying transfers of bitcoin over the Bitcoin network <b>12</b>. In the present scenario, the miner computer system <b>28</b> verifies the transfer of bitcoin from the second wallet (Wallet B) to the third wallet (Wallet C).

0106Another transfer may comprise that bitcoin is sent to one of the nodes, e.g. node <b>32</b>C. The node <b>32</b>C could be a fourth user device which is owned by the recipient of the bitcoin transfer having its own bitcoin address.

0107<figref idref="DRAWINGS">FIG. 46</figref> illustrates components that are used for cold storage of value of bitcoin, including a local storage <b>56</b>, a local controller <b>58</b>, a vault <b>64</b>, a splitter <b>66</b>, one or more encryption algorithms <b>68</b> and <b>70</b> and an offline distribution module <b>72</b>.

0108The vault <b>64</b> has a Bitcoin address <b>80</b> with a private key <b>79</b>. The private key <b>79</b> is, for purposes of illustration, shown as a nine digit sequence of characters that are provided to the splitter <b>66</b>. For purposes of illustration, the splitter <b>66</b> splits the nine digits of the private key <b>79</b> into seven overlapping codes (Codes 1 to 7). The encryption algorithm <b>68</b> encrypts the first code (Code 1) into an encrypted code (Encrypted Code 1). In a similar manner, the second code (Code 2) is encrypted by an encryption algorithm (not shown) into an encrypted code (Encrypted Code 2). Each one of the seven codes is encrypted into a separate encrypted code. A separate key may be used for each one of seven codes. Alternatively, a separate encryption algorithm may be used for each one of the seven codes.

0109Once all the codes have been encrypted, the offline distribution module <b>72</b> transmits each one of the encrypted codes (Encrypted Code 1 to 7) to a separate location. The locations are remote locations that are geographically separated from one another. The offline distribution module <b>72</b> may also be used to print one or more of the encrypted codes for paper delivery to respective remote locations.

0110<figref idref="DRAWINGS">FIG. 47</figref> illustrates functioning of the offline distribution module <b>72</b> following distribution of the encrypted codes in <figref idref="DRAWINGS">FIG. 46</figref>. The offline distribution module <b>72</b> removes the private keys <b>79</b> of the Bitcoin address <b>80</b> of the vault <b>64</b>. The offline distribution module <b>72</b> also removes the private key <b>79</b> of the Bitcoin address <b>80</b> within the local storage <b>56</b>.

0111As shown in <figref idref="DRAWINGS">FIG. 48</figref>, a local register <b>60</b> includes a plurality of wallets <b>42</b>, one of which is shown. The wallet <b>42</b> has a plurality of Bitcoin addresses <b>74</b>, <b>76</b> and <b>78</b> associated therewith. Each Bitcoin address <b>74</b>, <b>76</b> and <b>78</b> has a respective value and a respective private key. The local controller <b>58</b> transfers the entire value of the Bitcoin addresses <b>76</b> and <b>78</b> into the vault <b>64</b>. The value relating to the Bitcoin address <b>74</b> is not transferred into the vault <b>64</b>. The local controller <b>58</b> calculates the total value of the Bitcoin addresses <b>76</b> and <b>78</b> that have been transferred into the vault <b>64</b> and records the total value in the local storage <b>56</b> in association with the Bitcoin address <b>80</b>.

0112As shown in <figref idref="DRAWINGS">FIG. 49</figref>, following removal of the value of the Bitcoin addresses <b>76</b> and <b>78</b> within the wallet <b>42</b>, the value of the Bitcoin addresses <b>76</b> and <b>78</b> are only held within the vault <b>64</b> and the local storage <b>56</b>. The private key <b>79</b> is only held in a split and encrypted form at the distributed locations where the offline distribution module <b>72</b> in <figref idref="DRAWINGS">FIG. 46</figref> has distributed them to. Unless access can be gained to the private key <b>79</b> that has now been split and distributed, it is not possible to access the value of the Bitcoin addresses <b>76</b> and <b>78</b>. It is now possible for a user to which the wallet <b>42</b> is registered to use the Bitcoin address <b>74</b> for transacting with another user via the wallet management module <b>44</b> in <figref idref="DRAWINGS">FIG. 1B</figref>. The Bitcoin addresses <b>76</b> and <b>78</b> are not usable by the wallet management module <b>44</b> for purposes of transacting with another user at this time because their values, within the wallet <b>42</b>, have been removed.

0113<figref idref="DRAWINGS">FIG. 50</figref> shows how the private keys of the vault <b>64</b> and the Bitcoin addresses <b>76</b> and <b>78</b> that were removed in <figref idref="DRAWINGS">FIG. 46</figref> are restored. Components that are provided for restoration include a plurality of restoration interfaces <b>82</b>, <b>84</b> and <b>86</b>, one or more decryption algorithms <b>88</b>, <b>90</b> and <b>92</b> and an assembler <b>94</b>. The holder of the first encrypted code (Encrypted Code 1) is called upon to enter the encrypted code into the restoration interface <b>82</b>. The restoration interface <b>82</b> may for example be a web page with a field for entry of the first encrypted code. Alternatively, the restoration interface <b>82</b> may be an application programmable interface (API) and the first encrypted code can be entered into the API with or without human involvement.

0114In the given example, the second, third, fifth and sixth encrypted codes are not received at this time. The fourth and seventh encrypted codes are received through the restoration interfaces <b>84</b> and <b>86</b>, similar to the first encrypted code.

0115The decryption algorithm <b>88</b> decrypts the first encrypted code (Encrypted Code 1) into the first code (Code 1). In the given example, the decryption algorithms <b>90</b> and <b>92</b> decrypt the fourth and seventh encrypted codes (Encrypted Code 4 and Encrypted Code 7) into the fourth and seventh codes (Code 4 and Code 7) respectively. In the given example, three codes are the minimum number of codes that are required in order to reassemble the private key <b>79</b>. The minimum number of codes required for reassembly in <figref idref="DRAWINGS">FIG. 48</figref> is thus less than the total number of codes into which the private key <b>79</b> has been split in <figref idref="DRAWINGS">FIG. 46</figref>. The assembler <b>94</b> assembles the private key <b>79</b> when the minimum number of codes has been received.

0116The private key <b>79</b> of the Bitcoin address <b>80</b> in the local storage <b>56</b> is used to access the vault <b>64</b>. The local controller <b>58</b> then restores the private key <b>79</b> from the local storage into the vault for association with the Bitcoin address. The block chain will know whether the private key <b>79</b> that has been restored is the same private key <b>79</b> that was previously associated with the Bitcoin address. Only upon confirmation from the block chain will it be possible to transfer the value from the vault <b>64</b> to the local register <b>60</b>.

0117The local controller <b>58</b> restores the respective value of the Bitcoin addresses <b>76</b> and <b>78</b> in the vault <b>64</b> to the Bitcoin addresses <b>76</b> and <b>78</b> in the wallet <b>42</b>. Because the values have been restored to the Bitcoin addresses <b>76</b> and <b>78</b> in the wallet <b>42</b> they are usable for transacting with other users.

0118<figref idref="DRAWINGS">FIGS. 51</figref><i>a </i>to <b>51</b><i>d </i>illustrate the use of a “hot” wallet in combination with “cold storage”. As shown in <figref idref="DRAWINGS">FIG. 51</figref><i>a</i>, the wallet <b>42</b> has the Bitcoin addresses <b>74</b>, <b>76</b>, <b>78</b> and a further Bitcoin address <b>98</b>, each having a respective value associated therewith. The local storage <b>56</b> has first, second and third Bitcoin addresses <b>80</b>A to <b>80</b>C for first, second and third vaults <b>64</b>A to <b>64</b>C, respectively. The Bitcoin addresses <b>76</b> and <b>78</b> form a first transfer set that is selected for cold storage. The Bitcoin addresses <b>74</b> and <b>98</b> form a first transacting set. The values of the Bitcoin addresses <b>76</b> and <b>78</b> of the first transfer set are transferred into the first vault <b>64</b>A, as represented by “Value” in the first vault <b>64</b>A.

0119The private key of the Bitcoin address <b>80</b>A of the first vault <b>64</b>A is then transferred into the local storage <b>56</b> and is stored in association with the first Bitcoin address <b>80</b>A. As hereinbefore described with reference to <figref idref="DRAWINGS">FIG. 46</figref>, the private key of the Bitcoin address <b>80</b>A in the local storage <b>56</b> is then split and distributed. As hereinbefore described with reference to <figref idref="DRAWINGS">FIGS. 47 and 48</figref>, the private keys of the Bitcoin address <b>80</b> and the value of the Bitcoin address <b>76</b> and <b>78</b> are then removed. It is then not possible for a user of the wallet <b>42</b> to use the Bitcoin address <b>76</b> and <b>78</b> for transacting with another user. The user can still transact with another user using the Bitcoin addresses <b>74</b> and <b>98</b> of the first transacting set because their values are still associated with them within the wallet <b>42</b>.

0120<figref idref="DRAWINGS">FIG. 51</figref><i>b </i>shows the Bitcoin addresses <b>76</b> and <b>78</b> within the wallet <b>42</b> with their values removed and the Bitcoin address <b>80</b>A within the local storage <b>56</b> with its private key removed. The private key of the Bitcoin address <b>80</b>B of second vault <b>64</b>B is transferred into the local storage <b>56</b> and associated with the second Bitcoin address <b>80</b>B within the local storage <b>56</b>. The private key of the second Bitcoin address <b>80</b>B in the local storage <b>56</b> is split and distributed and then removed from the local storage <b>56</b>. The Bitcoin address <b>98</b> is selected as part of a second transfer set of one or more Bitcoin addresses. The value of the Bitcoin address <b>98</b> is transferred from the wallet <b>42</b> into the second vault <b>64</b>B, as represented by “Value” in the second vault <b>64</b>B. The value of the Bitcoin address <b>98</b> within the wallet <b>42</b> is thus removed. The user of the wallet <b>42</b> can now not use the Bitcoin address <b>98</b> for purposes of transacting with another user because the value of the Bitcoin address <b>98</b> has been removed from the wallet <b>42</b>. The Bitcoin address <b>74</b> forms part of a second transacting set that may include one or more Bitcoin addresses that can be used for transacting with another user.

0121<figref idref="DRAWINGS">FIG. 51</figref><i>c </i>shows the Bitcoin address <b>98</b> having its value removed and the second Bitcoin address <b>80</b>B within the local storage <b>56</b> having its private key removed. At this stage it may be desirable to restore the values of the Bitcoin addresses <b>76</b> and <b>78</b>. The private key of the first Bitcoin address <b>80</b>A within the local storage <b>56</b> is restored to the vault <b>64</b> as hereinbefore described with reference to <figref idref="DRAWINGS">FIG. 50</figref>. The respective values of the Bitcoin addresses <b>76</b> and <b>78</b> are then restored from the vault <b>64</b>A to the Bitcoin addresses <b>76</b> and <b>78</b> in the wallet <b>42</b>. Because the values of the Bitcoin addresses <b>76</b> and <b>78</b> are restored within the wallet <b>42</b>, the Bitcoin addresses <b>76</b> and <b>78</b> of the first transfer set can, at least for the time being, be used together with the second transacting set for transacting with another user.

0122The same Bitcoin addresses <b>74</b>, <b>76</b>, <b>78</b> and <b>98</b> that are shown in <figref idref="DRAWINGS">FIG. 51</figref><i>a </i>are also shown in <figref idref="DRAWINGS">FIGS. 51</figref><i>b </i>and <b>51</b><i>c</i>. It should be understood that the Bitcoin addresses may change between the figures. The system allows for the value that was previously associated with one Bitcoin address to be restored to another Bitcoin address if necessary.

0123As shown in <figref idref="DRAWINGS">FIG. 51</figref><i>d</i>, the first vault <b>64</b>A is discarded after the value therein is restored. The first Bitcoin address <b>80</b>A within the local storage <b>56</b> and the first vault <b>64</b>A will never be used again.

0124The Bitcoin address <b>78</b> is selected as a third transfer set. The private key of the Bitcoin address <b>80</b>C of the third vault <b>64</b>C is transferred into the local storage <b>56</b> and stored in association with a third Bitcoin address <b>80</b>C. The value of the Bitcoin address <b>78</b> is transferred from the wallet <b>42</b> to the third vault <b>64</b>C. The user of the wallet <b>42</b> can now not use the Bitcoin address <b>78</b> for transacting with another user. The Bitcoin address <b>76</b> forms part of a third transacting set that could include one or more Bitcoin addresses. The Bitcoin address <b>76</b> can be used by the user of the wallet <b>42</b> for transacting with another user because the value of the Bitcoin address <b>76</b> is associated therewith within the wallet <b>42</b>. The second and third transacting sets can thus be used by the user for transacting with another user. The second and third transfer sets are unusable for transacting with another user because their private keys have been removed.

0125<figref idref="DRAWINGS">FIG. 52</figref> illustrates how the local controller <b>58</b> (see <figref idref="DRAWINGS">FIGS. 46 to 50</figref>) maintains transaction sets of a wallet <b>42</b> within a target range <b>101</b>. Should all the Bitcoin addresses of the wallet <b>42</b> have values associated therewith, the wallet <b>42</b> is said to be 100% hot and 0% cold. If all the Bitcoin addresses in a wallet <b>42</b> have their values removed, the wallet <b>42</b> is to be 0% hot and 100% cold. The target range <b>101</b> for the total bitcoin value within the wallet may for example be 5% to 10% hot. At <b>102</b>, the values of the first transacting set are transferred from the wallet <b>42</b> as described with reference to <figref idref="DRAWINGS">FIG. 51</figref><i>a</i>. At <b>104</b>, the user transacts with some of the Bitcoin addresses and the total value within the wallet <b>42</b> of the Bitcoin addresses that are hot is reduced. At <b>106</b>, the values of the second transfer set are removed from the wallet <b>42</b> as described with reference to <figref idref="DRAWINGS">FIG. 51</figref><i>b</i>. At <b>108</b>, the values of the first transfer set are restored as described with reference to <figref idref="DRAWINGS">FIG. 51</figref><i>c</i>. At <b>110</b>, the user transacts and gains further Bitcoin addresses for additional value within their wallet <b>42</b>. At <b>112</b>, values of the third transfer set are transferred out of the wallet <b>42</b> as described with reference to <figref idref="DRAWINGS">FIG. 51</figref><i>d</i>. It can thus be seen that the local controller <b>58</b> in <figref idref="DRAWINGS">FIGS. 46 to 50</figref> adjusts the total value of bitcoin that is not within the target range <b>101</b>. The local controller <b>58</b> typically recalculates the hot/cold value ratio of each wallet on a daily basis and automatically adjusts the value to the target range <b>101</b>.

0126<figref idref="DRAWINGS">FIG. 53</figref> illustrates the use of an intermediate hot wallet <b>114</b> that is used to collect bitcoin values from a plurality of wallets <b>42</b>A to C. The wallet <b>42</b>A is that same as the wallet <b>42</b> as described above. The wallet <b>42</b>B has bitcoin addresses <b>120</b>, <b>122</b>, <b>124</b> and <b>126</b> associated therewith. The wallet <b>42</b>C has bitcoin addresses <b>128</b>, <b>130</b>, <b>132</b> and <b>134</b> associated therewith. Each wallet <b>42</b>A, B or C is held within the target range <b>101</b> in <figref idref="DRAWINGS">FIG. 50</figref>. The values of the bitcoin addresses <b>76</b>, <b>78</b>, <b>120</b>, <b>122</b>, <b>128</b> and <b>130</b> are identified for transfer to the vault <b>64</b>A and are first transferred or “swept” to the intermediate hot wallet <b>114</b> from where they are transferred to the vault <b>64</b>A.

0127<figref idref="DRAWINGS">FIG. 54</figref> illustrates a network environment <b>136</b> that, in addition to the first host computer system <b>14</b>, includes a customer computer system <b>138</b> and a merchant computer system <b>140</b> that are connected to one another over the Internet <b>142</b>. The merchant computer system <b>140</b> has an online store <b>144</b> and a website <b>146</b>. The customer computer system <b>138</b> has a browser <b>148</b>. A customer at the customer computer system <b>138</b> can use the browser <b>148</b> to access the website <b>136</b> over the Internet <b>142</b>. The website <b>136</b> is then displayed on the browser <b>148</b>. The website <b>136</b> allows for the customer to make purchase on the online store <b>144</b>. The customer may, for example, purchase real goods, virtual goods or services from the online store <b>144</b>.

0128The first host computer system <b>14</b> includes an application programmable interface (API) <b>150</b>, a reference code generator <b>152</b>, a transaction processor <b>154</b>, a currency converter <b>156</b> and merchant, and customer and host wallets <b>158</b>, <b>160</b> and <b>162</b>. The wallets <b>158</b>, <b>160</b> and <b>162</b> may be of the kind as hereinbefore described.

0129As shown in <figref idref="DRAWINGS">FIG. 55</figref>, the customer is shown a shopping cart with several payment options, including “Pay with Credit Card” and “Pay with bitcoin.” Prior to being displayed the shopping cart, the customer has traveled through the shopping flow of the merchant computer system <b>140</b>, has selected one or more items to be purchased and has selected a shopping or checkout cart, which causes the display of the view shown in <figref idref="DRAWINGS">FIG. 55</figref>. When the user selects the button “Pay with bitcoin” the merchant computer system <b>140</b>, at <b>166</b>, transmits an API call to the first host computer system <b>14</b>. The API call includes a request for payment. The request for payment includes an amount in a currency, in the present example $14.00, an order name (usually a number), order descriptions (usually items in the checkout cart in a single line-item entry separated by commas), and a success uniform resource locater (URL) if desired (a page to which the customer is redirected at checkout if the order completes).

0130When the first host computer system <b>14</b> receives the API call at <b>166</b>, the reference code generator <b>152</b> generates a unique reference code for the specific order. The reference code is thus uniquely generated for each API call. The first host computer system <b>14</b> then stores the reference code in its database. At <b>168</b>, the first host computer system <b>14</b> responds to the API call received at <b>166</b> to transmit the reference code to the merchant computer system <b>140</b>. The merchant computer system <b>140</b> then receives the reference code as reference code <b>170</b>. The merchant computer system <b>140</b> stores the reference code as reference code <b>172</b> within its accounting system <b>173</b> and associates the reference code <b>172</b> with the particular order shown in the shopping cart. The merchant computer system <b>140</b> also creates a URL <b>174</b>. The reference code <b>170</b> is used as a reference code <b>176</b> within the URL <b>174</b> when the URL <b>174</b> is created.

0131The first host computer system <b>14</b> creates a URL <b>180</b> that includes a reference code <b>182</b>. The reference code <b>182</b> and the reference code <b>176</b> are the same.

0132The merchant computer system <b>140</b> at <b>178</b> redirects the browser <b>148</b> (<figref idref="DRAWINGS">FIG. 54</figref>) using the URL <b>174</b>. The browser is then redirected to the URL <b>180</b> of the first host computer system <b>14</b>.

0133The URL <b>180</b> may, for example, be the URL of a landing page, iFrame or modal window <b>184</b>. The landing page, iFrame or modal window <b>184</b> presents checkout options to the customer, including to pay with the customer wallet <b>160</b> if one exists, to pay with bitcoin using an external account, or to create a wallet at the first host computer system <b>14</b> for purposes of completing the purchase. In a different embodiment, instead of being automatically redirected by the merchant computer system <b>140</b> to the first computer system <b>14</b>, the customer may be redirected to a different page at the merchant computer system <b>140</b>, which will then contain a link for the customer to navigate to the landing page, iFrame or modal window <b>184</b>.

0134When the browser <b>148</b> of the customer computer system <b>138</b> downloads the landing page, iFrame or modal window <b>184</b>, the first host computer system <b>14</b> automatically generates a bitcoin address <b>186</b> specifically for the customer's order within the merchant wallet <b>158</b>.

0135The first host computer system <b>14</b> also creates a bitcoin price based on the price in local currency and displays the bitcoin price within the landing page/iFrame or modal window <b>184</b> within the browser <b>148</b>. The graph illustrates a fluctuating bitcoin to dollar exchange rate. In the present example, the exchange rate at minute 0 is used at <b>190</b> to calculate the exchange rate. The local currency price in the present example is $14.00 which gives a bitcoin price of 0.02 BTC. The price of 0.02 BTC that is based on the exchange rate at minute 0 is maintained for a select period of time, in the present example 10 minutes, before it resets. The customer may not wish to immediately send the bitcoin, but may do so at any time before the price resets at minute 10 and the exchange rate remains locked in and the bitcoin price thus remains unchanged at 0.02 BTC during that time.

0136An option is displayed to the customer to send the bitcoin together with the price in bitcoin at minute 0. When the customer selects the option to send the bitcoin, the customer computer system <b>138</b> transmits a send instruction to the first host computer system <b>14</b>. The first host computer system <b>14</b> receives and at <b>192</b> detects the send instruction. The customer may for example request to send bitcoin from the customer wallet <b>160</b> or via another path as hereinbefore described. The first host computer system <b>14</b> responds to the send instruction to transmit an order status message that includes the reference code for the transaction to the merchant computer system <b>140</b>. The merchant computer system <b>140</b> receives the reference code as reference code <b>194</b>. The merchant computer system <b>140</b> then matches the reference code <b>194</b> to the reference code <b>172</b> within its accounting system <b>173</b> and marks the transaction as complete.

0137In the present example, the send instruction is processed at minute 6. The exchange rate has in the present example changed between minute 0 and minute 6. Should the bitcoin price of 0.02 BTC be converted to local currency at this time it would result in a different price in local currency than the original transaction. The difference between the original price at minute 0 and minute 6 represents either a loss or a gain for the first host computer system <b>14</b>. The loss and gain is used to calculate bitcoin replacement costs on a periodic basis.

0138In the present example the first computer system <b>14</b> responds to the send instruction received at <b>192</b> to transmit 0.02 BTC to the bitcoin address <b>186</b> associated with the merchant wallet <b>158</b>. When the bitcoin reaches the bitcoin address <b>186</b>, the first host computer system <b>14</b>, at <b>196</b>, immediately purchases the bitcoin from the merchant wallet <b>158</b>, resulting in a transfer of the bitcoin from the merchant wallet <b>158</b> to the host wallet <b>162</b>. The first host computer system <b>14</b> purchases the bitcoin at the exchange rate locked in at minute 0.

0139Periodically, for example daily, the first host computer system <b>14</b> calculates the total amount of bitcoin sold by the merchant wallet <b>158</b> that day at the locked in prices. The first host computer system <b>14</b> has a bank transfer module <b>200</b> that, at <b>202</b>, transmits a payment instruction to a bank for the first host computer system <b>14</b>. The bank for the first host computer system <b>14</b> communicates with a bank of the merchant computer system <b>140</b>. Such communication, at <b>204</b>, results in transfer of funds from a host bank account <b>206</b> to a merchant bank account <b>208</b>.

0140In the present example, the customer uses their customer wallet <b>160</b> to transfer funds in the form of bitcoin from the customer wallet <b>160</b> to the merchant wallet <b>158</b> and the funds are then transferred in the form of bitcoin from the merchant wallet <b>158</b> to the host wallet <b>162</b>. In another embodiment, the merchant wallet <b>158</b> can be bypassed such that the customer transfers funds in the form of bitcoin from the customer wallet <b>160</b> directly into the host wallet <b>162</b>. In either embodiment the funds that are received by the host wallet <b>162</b> are used as a basis for calculating the amount of money in local currency that is transferred by the bank transfer module <b>200</b>, minus a fee that is held back by the first host computer system <b>14</b> for purposes of processing the transaction.

0141Referring again to <figref idref="DRAWINGS">FIG. 54</figref>, the API <b>150</b> sends and receives API calls at <b>166</b>, <b>168</b> and the order status message in response to the send instruction <b>192</b> in <figref idref="DRAWINGS">FIG. 55</figref>. The currency converter <b>156</b> is responsible for receiving and maintaining exchange rate for bitcoin to local currency and for calculating the bitcoin price based on the local currency price and the exchange rate at any particular moment in time. The transaction processor <b>154</b> is responsible for transferring funds in the form of bitcoin or local currency from one wallet or bank account to another.

0142In the embodiment above, the exchange rate is locked in when the customer accesses the landing page, iFrame or modal window <b>184</b> and is locked for ten minutes. In such an embodiment the merchants typically create a payment “button” or using the API, specifically the button API, of the first host computer system. Selection of the button by the customer results from the process described above wherein the customer is directed to the landing page, iFrame or modal window <b>184</b>. Such a button does not need to look any different from the merchant's standard “submit order” button and the button API is linked into the standard “submit order” button of the merchant computer system <b>140</b>, which when clicked will direct the user directly to the landing page, iFrame or modal window <b>184</b>. When the user hits the landing page the exchange rate is locked. The merchant “order” is thus not created—i.e., with locked in exchange rate—until the user clicks the payment button to land on our landing page.

0143Another embodiment is used in white-label solutions. In these instances, the user is not directed away from the merchant domain to a landing page such as the landing page, frame or modal window <b>184</b> to complete payment. Instead, the checkout information that would have otherwise shown on the landing page is displayed inside the merchant's browser checkout tool. Such an embodiment may not allow “one-click” checkout for users who are already signed into their customer wallet <b>160</b>; a user can only pay by QR code scan and/or manual entry of a bitcoin address. In order for this information to be incorporated into the merchant's webpage, the merchant (1) creates a “button” when they post an item for sale to the website (the button includes the price in local currency, but not a bitcoin price and can be created at any time—e.g., weeks before a purchase); and (2) when the customer wishes to pay, e.g., by clicking on a “Place Order” button, the merchant computer system <b>140</b> sends an API call to the first host computer system <b>14</b> which responds by sending back a locked in exchange rate, which again is good for ten minutes. The merchant then displays the checkout information to the user—i.e., the proper bitcoin address and amount. This embodiment differs in that: (1) the “order” is created earlier in time, and the exchange rate follows on as a separate API call; and (2) the checkout information is hosted within the merchant's domain.

0144<figref idref="DRAWINGS">FIG. 56</figref> illustrates a method of managing bitcoin wherein a personal vault is created for a user. At <b>220</b>, the user already has an account that the user can log into using a website. The account has a first email (electronic communication) address. The first email address may be john.smith@gmail.com. The account also has a phone number associated therewith and one or more wallets as herein before described. The website provides the user with a link to create a vault. At <b>222</b>, the user is provided an option to create an individual vault or a group vault. In an individual vault the user will be required to respond to two emails in order to transfer bitcoin out of the vault. In a group vault multiple users are required to respond to emails in order for the user of the account represented at <b>220</b> to transfer the bitcoin out of the vault.

0145The user may, at <b>224</b>, select an individual vault. At <b>226</b>, an interface of the website is presented with a field for the user to enter a second email address. The second email address may for example be john.smith@hotmail.com. The user enters the second email address and selects a button to transmit the second email address from their device to the first host computer system <b>14</b>. When the first host computer system <b>14</b> receives the second email address, the first host computer system <b>14</b>, at <b>228</b>, transmits a confirmation email with a confirmation link to the second email address. The purpose of the email that is transmitted at <b>228</b> is to confirm the second email address. At <b>230</b>, the first host computer system <b>14</b> waits for the confirmation. The first host computer system <b>14</b> does not proceed to create a vault if the confirmation is not received. At <b>232</b>, the user selects the confirmation link, which causes transmission of the confirmation from the device of the user to the first host computer system <b>14</b>. When the first host computer system <b>14</b> receives the confirmation, the first host computer system <b>14</b> proceeds at <b>232</b> to register a vault within the same account shown at <b>220</b>. The vault includes the first and second email addresses. The vault also includes the phone number of the account.

0146At <b>236</b>, the first host computer system <b>14</b> updates the interface of the website to provide a summary. The summary indicates that, in order to transfer bitcoin out of the vault, emails will be sent to the first and second email addresses, and the summary includes the phone number associated with the vault and that the bitcoin will not be transferred out of the vault for a period of 48 hours. The interface also includes a “Finish” button. When the user selects the “Finish” button, the browser used by the user, at <b>238</b>, lands in the vault. The vault looks like a wallet, but has a security feature that limits transfer of bitcoin out of the vault.

0147The user may, at <b>240</b>, select a group vault. At <b>242</b>, the first host computer system <b>14</b> provides the user with an option whether 2 out of 3 confirmations are required or 3 out of 5 confirmations are required. If the user selects that 2 out of 3 confirmations are required, then the user is required to enter two email addresses in addition to their own email address shown in the account at <b>220</b>. If the user selects that 3 out of 5 confirmations are required, then the user is required to enter four email addresses in addition to their email address shown in the account at <b>220</b>.

0148At <b>224</b>, the interface of the website is updated to request the additional email addresses from the user. The interface typically includes fields for the user to enter the additional email addresses.

0149At <b>246</b>, the first host computer system <b>14</b> makes a determination whether all the additional email addresses are associated with other accounts within the first host computer system <b>14</b>. If all the additional email addresses are associated with other accounts, then the first host computer system <b>14</b> proceeds at <b>248</b> to update the account represented at <b>220</b> with a vault that includes the first email address, the additional email addresses and the phone number associated therewith.

0150If one or more of the additional email addresses are not associated with any accounts within the first host computer system <b>14</b>, then the first host computer system <b>14</b>, at <b>250</b>, transmits an email to the additional email address that is not associated with an account to create an account. A user receiving the email transmitted at <b>250</b> can proceed at <b>252</b> to create an account with the second email address associated with the account. Only after all the additional email addresses are associated with accounts does the first host computer system <b>14</b>, at <b>248</b>, proceed to register a vault.

0151The first host computer system <b>14</b> then at <b>254</b> provides a summary through the interface of the website. The summary shows that in order to transfer bitcoin, emails will be sent to and confirmations will be required from the first email address and the minimum of the additional email addresses. The summary also includes the phone number associated with the vault and states the waiting period before the bitcoin is transferred. The website also includes a “Finish” button which, when selected by the user at <b>238</b>, lands the browser used by the user in the vault.

0152<figref idref="DRAWINGS">FIG. 57</figref> illustrates how bitcoin is transferred into and out of the vault. At <b>260</b>, the user first transfers bitcoin into the vault. The user may transfer the bitcoin from one of their wallets associated with their account into the vault or may transfer the bitcoin into the vault from an external source. The bitcoin is then stored within the vault.

0153At <b>262</b>, the user requests a transfer out of the vault using the website. The user includes the amount of bitcoin to be transferred, the reason for the transfer and selects a wallet to which the bitcoin is to be transferred. The user also includes a two-factor code which the user may obtain through a mobile application or via SMS communication with the first host computer system <b>14</b>.

0154At <b>264</b>, the first host computer system <b>14</b> determines whether the two-factor code is correct. If the two-factor code is incorrect, then the first host computer system <b>14</b>, at <b>266</b>, makes no change to the website interface.

0155If the determination is made at <b>264</b> that the two-factor code is correct, then the first host computer system <b>14</b> proceeds at <b>268</b> to transmit all emails. In the case of an individual vault, emails are sent to the first and second email addresses represented in the account at <b>234</b> in <figref idref="DRAWINGS">FIG. 56</figref>. In the case of a group vault, then emails are transmitted to the first email address and the additional email addresses represented in the account at <b>248</b> in <figref idref="DRAWINGS">FIG. 56</figref>. At <b>270</b>, the first host computer system <b>14</b> updates the transaction list within the website to represent that approval is being awaited.

0156Each one of the emails has a respective link that can be selected by a recipient. At <b>272</b>, a user receiving one of the emails reacts to the email by clicking on the link. Selection of the link causes an authorization instruction to be transmitted from a device of the respective user to the first host computer system <b>14</b>. At <b>274</b>, the first host computer system <b>14</b> detects the authorization instruction received in response to one of the emails that have been transmitted. Selection of the link on the email opens a browser on the recipient's device and displays a message that the authorization has been successfully approved.

0157At <b>276</b>, the recipient of a second one of the emails reacts to the email by clicking the link on the second email to send an authorization instruction. At <b>278</b>, the first host computer system <b>14</b> detects the authorization instruction transmitted at <b>276</b> and displays a web page indicating that the authorization has been successfully approved.

0158When all the predetermined approvals have been received, the first host computer system <b>14</b> proceeds, at <b>280</b>, to update the transaction list to indicate that clearance is being awaited. At <b>282</b>, only if the minimum number of approvals are detected, the first host computer system <b>14</b> starts a countdown timer and sends an email to the user of the account informing the user that the bitcoin will be transferred after 48 hours. Block <b>284</b> represents the transmission of three email reminders to the user during the 48 hour waiting period. Each email includes the time remaining before the 48 hours will have elapsed and the amount of bitcoin that will be transferred out of the vault. Each email also includes a “Cancel” link. The user can select the “Cancel” link, which caused the transmission of a cancel instruction to the first host computer system <b>14</b>. The cancel instruction will cancel the transfer of the bitcoin and therefore the request that was transmitted at <b>262</b>.

0159At <b>286</b>, the first host computer system <b>14</b> detects an end of the time period. The first host computer system <b>14</b> then transfers the amount of bitcoin out of the vault and in to the destination selected at <b>262</b>. The first host computer system <b>14</b> also updates the transaction list on the website to indicate that the transaction has been cleared.

0160<figref idref="DRAWINGS">FIG. 58</figref> illustrates components of the first host computer system <b>14</b> that are used for carrying out the method shown in <figref idref="DRAWINGS">FIGS. 56 and 57</figref>, including an account <b>290</b> of a user, a website <b>292</b>, a vault establishment wizard <b>294</b>, a vault management module <b>296</b> and the transaction processor <b>154</b> hereinbefore described. The vault establishment wizard <b>294</b> is programmed to execute the establishment of the vault as described with reference to <figref idref="DRAWINGS">FIG. 56</figref>. The vault management module <b>296</b> is programmed to manage the vault as described with reference to <figref idref="DRAWINGS">FIG. 57</figref>. A user accesses the website <b>292</b> and downloads an interface so as to interact via the website <b>292</b> with the vault establishment wizard <b>294</b> and the vault management module <b>296</b>. The vault management module <b>296</b> provides instructions to the transaction processor <b>154</b> to transfer the bitcoin out of the vault.

0161<figref idref="DRAWINGS">FIG. 59</figref> shows the email that is transmitted at <b>228</b> in <figref idref="DRAWINGS">FIG. 56</figref>. <figref idref="DRAWINGS">FIG. 60</figref> shows an interface of the website <b>292</b> in <figref idref="DRAWINGS">FIG. 58</figref> when the user requests a transfer out of a vault at <b>262</b> in <figref idref="DRAWINGS">FIG. 57</figref>. <figref idref="DRAWINGS">FIGS. 61 and 62</figref> show the emails that are transmitted at <b>268</b> in <figref idref="DRAWINGS">FIG. 57</figref>. <figref idref="DRAWINGS">FIG. 63</figref> shows the interface of the website after the minimum number of approvals are received and the countdown clock has been started at <b>282</b> in <figref idref="DRAWINGS">FIG. 57</figref>.

0162Email addresses are used in the exemplary embodiment for electronic communication via email. Another embodiment may make use of other electronic communication addresses such as text messages to phone numbers or messages through social networks. Such messages may include authorization links as described or authorization may be obtained otherwise such as sending a reply message and including “Y” or “Yes” in the reply message. A secondary electronic communication address may be an individual address or a group address.

0163<figref idref="DRAWINGS">FIG. 64</figref> illustrates the establishment of a user-controlled vault. At <b>302</b>, a user at the first user device <b>18</b> transmits a request for a user-controlled vault to the first host computer system <b>14</b>. At <b>304</b>, the first host computer system <b>14</b> responds to the request to initiate key generation.

0164At <b>306</b>, the first host computer system <b>14</b> generates a seed for a master key. At <b>308</b>, the first host computer system <b>14</b> uses the seed generated at <b>306</b> to generate a master key. The master key includes a public key for the master key and a private key for the master key. At <b>310</b>, the first host computer system <b>14</b> stores the public key for the master key and, at <b>312</b>, stores the private key for the master key. The combination of the keys stored at <b>310</b> and <b>312</b> form a master key set <b>314</b>.

0165A generation script <b>316</b> initially resides on the first host computer system <b>14</b>. At <b>318</b>, the first host computer system <b>14</b> transmits the generation script <b>316</b> to the first user device <b>18</b>. The first user device <b>18</b> receives the generation script <b>316</b>, which is executable on the first user device <b>18</b>.

0166At <b>320</b>, the generation script <b>316</b> generates a seed for a shared key. The generation script <b>316</b> includes a key generation algorithm. At <b>321</b>, the key generation algorithm uses the seed generated at <b>320</b> to generate a shared key. The shared key includes a public key and a private key.

0167The private key for the shared key is shown at <b>322</b>. The generation script <b>316</b> also includes an interface with a field for a user to enter a password via a keyboard. At <b>324</b>, the user enters the password into the interface. The generation script <b>316</b> also includes an encryption algorithm. At <b>326</b>, the encryption algorithm generates an encrypted seed from the private key shown at <b>322</b> and the password entered at <b>324</b>.

0168At <b>328</b> and <b>330</b>, the key generation algorithm and encryption algorithm respectively send the public key of the shared key and the encrypted seed to the first host computer system <b>14</b>. At <b>332</b>, the first host computer system <b>14</b> stores the public key for the shared key and, at <b>334</b>, stores the encrypted seed for the shared key. The public key stored at <b>332</b> and the encrypted seed <b>334</b> can be viewed as a shared key set <b>336</b>. Additionally, the private key shown at <b>322</b> forms part of the shared key set <b>336</b>. The private key shown at <b>322</b> is however never transmitted from the first user device <b>18</b> to the first host computer system <b>14</b>.

0169At <b>338</b>, the generation script <b>316</b> further generates a seed for a user key. At <b>340</b>, the key generation algorithm uses the seed generated at <b>338</b> to generate a user key. The user key includes a public key for the user key and a private key for the user key. At <b>342</b>, the key generation algorithm transmits only the public key for the user key to the first host computer system <b>14</b>. At <b>344</b>, the first host computer system <b>14</b> stores the public key for the user key.

0170At <b>346</b>, the generation script <b>316</b> displays the private key for the user key to the user. The user can then store the private key manually on the first user device <b>18</b> or write it down for later use. The first user device <b>18</b> never transmits the private key displayed at <b>346</b> to the first host computer system <b>14</b>. The combination of the public key for the user key stored at <b>344</b> and the private key for the user key displayed at <b>346</b> form a user key set <b>348</b>.

0171<figref idref="DRAWINGS">FIG. 65</figref> illustrates how the user-controlled vault is used by the user. At <b>360</b>, the user of the first user device <b>18</b> creates and transmits a request to transact using bitcoin of the user-controlled vault. At <b>362</b>, the request reaches the transaction processor <b>154</b> hereinbefore described. At <b>364</b>, the first host computer system <b>14</b> creates an authorization for the transaction.

0172The master key set <b>312</b>, shared key set <b>336</b> and user key set <b>334</b> are replicated from <figref idref="DRAWINGS">FIG. 64</figref> and the same reference numerals apply. It should however be understood that these keys are stored or displayed in <figref idref="DRAWINGS">FIG. 64</figref> and that the stored and displayed keys are not stored but only retrieved and used in <figref idref="DRAWINGS">FIG. 65</figref>.

0173At <b>366</b>, the first host computer system <b>14</b> signs the authorization <b>364</b> with the private key for the master key. Such signature then allows for an authorization to transact at <b>368</b>. As shown in <b>370</b>, two out of three authorizations are required in order to transact and the authorization provided at <b>368</b> may form one of the two authorizations.

0174A verification script <b>372</b> initially resides on the first host computer system <b>14</b>. At <b>373</b>, the first host computer system <b>14</b> initiates key collection by transmitting the verification script <b>372</b> to the first user device <b>18</b>. The verification script <b>372</b> is executable on the first user device <b>18</b>. Both the generation script <b>316</b> in <figref idref="DRAWINGS">FIG. 64</figref> and the verification script <b>372</b> in <figref idref="DRAWINGS">FIG. 65</figref> may be in the form of JavaScript™ that is executable by a browser on the first user device <b>18</b>.

0175The encrypted seed stored at <b>334</b> on the first host computer system <b>14</b> is transmitted together with the verification script <b>372</b> and is received at <b>374</b> by the first user device <b>18</b>. The verification script <b>372</b> further includes an interface with a field for entering a password. At <b>376</b>, the user enters the same password that the user entered at <b>324</b> in <figref idref="DRAWINGS">FIG. 64</figref> into the field provided in the interface using a keyboard. The verification script <b>372</b> further includes a decryption algorithm. At <b>378</b>, the decryption algorithm uses the encrypted seed and the password to decrypt the encrypted seed and obtain the private key. The encryption at <b>326</b> in <figref idref="DRAWINGS">FIG. 64</figref> and decryption at <b>378</b> in <figref idref="DRAWINGS">FIG. 65</figref> may follow the BIP38 protocol which is commonly understood by those skilled in the art of bitcoin encryption.

0176The authorization <b>364</b> is transmitted together with the verification script <b>372</b> to the first user device <b>18</b>. The verification script <b>372</b> further has a signature algorithm. At <b>380</b>, the signature algorithm signs the authorization with the private key. The signature algorithm then transmits the signed authorization (together with the signature) to the first host computer system <b>14</b>.

0177The first host computer system <b>14</b> has a verification module. As will be commonly understood as those skilled in the art, a verification module is an algorithm that verifies a signature that was created with a private key using a public key. At <b>382</b>, the verification module verifies the signature using the same public key stored at <b>332</b> for the shared key in the shared key set <b>336</b> that also includes the encrypted seed stored at <b>334</b>. At <b>384</b>, the verification module determines whether the signature is correct. If the signature is not correct, then the first computer system <b>14</b> returns to <b>374</b> where the encrypted key is received and the user enters a password. If, at <b>384</b>, a determination is made that the signature is correct, then the first host computer system <b>14</b> proceeds to <b>386</b> to provide an authorization due to the signature being correct. The authorization at <b>386</b> may be one of the authorizations required at <b>370</b> in order to authorize the transaction.

0178The verification script <b>372</b> further includes an interface for entering the private key of the user key that was previously displayed at <b>346</b> to the user. At <b>390</b>, the user enters the private key into the field provided therefor. At <b>392</b>, a signature algorithm forming part of the verification script <b>372</b> signs the authorization with the private key that has been entered by the user. The signature algorithm then transmits the signed authorization (together with the signature) to the first host computer system <b>14</b>. At <b>394</b>, a verification module verifies the signature using the public key that was stored at <b>344</b>. At <b>396</b>, the verification module determines whether the signature is correct. If the signature is incorrect, then the first host computer system <b>14</b> instructs the verification script <b>372</b> to return to <b>390</b> where the user is again asked for the private key for the user key. If the signature is correct, then the first host computer system <b>14</b> proceeds to <b>398</b> to provide an authorization for the transaction due to the signature being correct. The authorization provided at <b>398</b> may be one of the authorizations required at <b>370</b>.

0179What should be noted this time is that the password entered at <b>376</b> is never transmitted to the first host computer system <b>14</b>. Similarly, the private key entered at <b>390</b> is never transmitted to the first host computer system <b>14</b>. The user's control over the password and private key effectively disallows the transaction from being processed outside of the user's control.

0180After two out of the three authorizations have been received at <b>370</b>, the first host computer system <b>14</b> proceeds at <b>400</b> to authorize the transaction with the transaction processor <b>154</b>.

0181<figref idref="DRAWINGS">FIG. 66</figref> illustrates an address generator <b>402</b> that is used to generate addresses such as the bitcoin address that are used for the transaction requested at <b>360</b> in <figref idref="DRAWINGS">FIG. 65</figref>. A master key seed <b>404</b>, shared key seed <b>406</b> and user key seed <b>408</b> are generated. The master key seed <b>404</b> is used to generate a master public key <b>410</b> and a master private key <b>412</b>. The shared key seed <b>406</b> is used to generate a shared public key <b>414</b> and a shared private key <b>416</b>. The user key seed <b>408</b> is used to generate a user public key <b>418</b> and user private key <b>420</b>.

0182Each one of the keys <b>410</b> to <b>420</b> may be used to generate child keys M/0, M/1 . . . . The shared keys at each level may then be combined to generate an address. For example, the M/0 keys of the master public key <b>410</b>, shared public key <b>414</b> and user public key <b>418</b> may be used to generate an address (Address 0). The M/0 level may for example be the public keys stored at <b>310</b>, <b>332</b> and <b>334</b> in <figref idref="DRAWINGS">FIG. 64</figref>. The address (Address 0) may for example be the bitcoin address for the transaction. Similarly, the M/1 level keys of the master public key <b>410</b>, shared public key <b>414</b> and user public key <b>418</b> may be used to generate another address (Address 1). The further addresses may be generated to create further bitcoin addresses of for other purposes.

0183<figref idref="DRAWINGS">FIG. 67</figref> of the accompanying drawings illustrates the first host computer system <b>14</b>, a partner computer system <b>422</b> and a receiver computer system <b>424</b>. The receiver computer system <b>424</b> includes a receiver browser <b>426</b>. The partner computer system <b>422</b> has a website, in the present example a blog with a blog post <b>428</b> that has a blog post URL <b>430</b>. At <b>432</b>, a user of the receiver computer system <b>424</b> uses the receiver browser <b>426</b> to create the blog post <b>428</b>.

0184The first host computer system <b>14</b> has a wallet in the form of receiver account <b>434</b>, an embedded code generator and a button ID generator <b>438</b>. At <b>440</b>, the user of the receiver computer system <b>424</b> creates the receiver account <b>434</b>. The receiver account <b>434</b> has login details <b>442</b> and a receiver account identifier (ID) <b>444</b>. At <b>446</b>, the user of the receiver computer system <b>424</b> logs into the receiver account <b>434</b> and enters the blog post URL <b>430</b> through the user interface <b>36</b> (<figref idref="DRAWINGS">FIG. 1B</figref>). The blog post URL <b>430</b> is then stored in association with the particular receiver account <b>434</b> with the wallet management module <b>44</b> (<figref idref="DRAWINGS">FIG. 1B</figref>). At <b>448</b>, the first host computer system <b>14</b> provides the blog post URL <b>430</b> to the embedded code generator and button ID generator <b>438</b>. The embedded code generator <b>438</b> then generates an embedded code <b>450</b> and, at <b>452</b>, transmits the embedded code <b>450</b> to the receiver browser <b>426</b>. The embedded code <b>450</b> includes the blog post URL <b>430</b>, receiver account ID <b>444</b> and a startup caller <b>454</b>.

0185The blog post <b>428</b> on the partner computer system <b>422</b> has a frame for pasting the embedded code <b>450</b> due to prior agreement between operators of the first host computer system <b>14</b> and the partner computer system <b>422</b>. At <b>456</b>, the user of the receiver computer system <b>424</b> copies the embedded code <b>450</b> received at <b>452</b> and pastes the embedded code <b>450</b> into the frame of the blog post <b>428</b>. The embedded code <b>450</b> is then embedded and forms part of the HyperText Markup Language (HTML) of the blog post <b>428</b>.

0186A blog post <b>428</b> is used herein to describe the invention by way of example. It should however be understood that the invention may have broader application. A URL of a page may for example have a video, song or news article. Such a page will typically have a frame for pasting the embedded code <b>450</b>. Alternatively, media content such as a video may not have a separate frame for pasting the embedded code. Instead, another manner of activating payment features of the invention may be provided, such as a separate URL link, voice activation, detection of human gestures of a user, etc.

0187The button ID generator (see <b>438</b>) generates a unique button ID. At <b>458</b>, the button ID generator stores the button ID as button ID <b>460</b> within a data store of the first host computer system <b>14</b>. At <b>462</b>, the button ID generator <b>438</b> stores the button ID <b>460</b> in association with the particular receiver account ID <b>444</b> and particular blog post URL <b>430</b>. Multiple receiver accounts may exist within the first host computer system <b>14</b>. In addition, a receiver account may have multiple blog post URL's associated therewith. Each pair of a respective receiver account ID and respective blog post URL have a unique button ID.

0188<figref idref="DRAWINGS">FIG. 68</figref> shows the first host computer system <b>14</b>, the partner computer system <b>422</b> and a sender computer system <b>464</b>. The sender computer system <b>464</b> has a sender browser (not shown). At <b>466</b>, the sender browser downloads the blog post <b>428</b> from the partner computer system <b>422</b>. The startup caller <b>454</b> is a script, e.g. JavaScript®, that automatically executes on the sender computer system <b>464</b>. At <b>470</b>, the startup caller <b>454</b> retrieves all sender cookies <b>472</b> on the sender computer system <b>464</b>. The startup caller <b>454</b>, at <b>474</b>, transmits a startup call to the first host computer system <b>14</b>. The startup call includes the cookies <b>472</b>, the blog post URL <b>430</b> and the receiver account ID <b>444</b>.

0189The first host computer system <b>14</b> includes a startup call responder <b>476</b> that receives the startup call <b>474</b>. The startup call responder <b>476</b>, at <b>478</b>, uses the blog post URL <b>430</b> and receiver account ID <b>444</b> received in the startup call <b>474</b> to identify the particular button ID <b>460</b>.

0190The button ID <b>460</b> in storage may have bits <b>480</b> representing all payments made in association with the button ID <b>460</b>. At <b>482</b>, the startup call responder <b>476</b> retrieves the bits <b>480</b> associated with the button ID <b>460</b> from the data store.

0191At <b>483</b>, the startup call responder <b>476</b> transmits a startup call response to the sender computer system <b>464</b>. The startup call response transmitted at <b>483</b> is in response to the startup call received at <b>474</b>. The startup call response includes a button <b>484</b>, the bits <b>480</b>, a session script <b>486</b> and the button ID <b>460</b>. A display <b>490</b> of the sender computer system <b>464</b> displays the blog post <b>428</b>. The embedded code <b>450</b> has added the button <b>484</b> and the bits <b>480</b> to the blog post <b>428</b>. The button <b>484</b> is a two-dimensional button that is selectable by a user of the sender computer system <b>464</b>. The session script <b>486</b> is associated with the button <b>484</b> so as to be executable when the user selects the button <b>484</b>.

0192The embedded code <b>450</b>, at <b>491</b>, stores the button ID <b>460</b> within the sender cookies <b>472</b>. The button ID <b>460</b> stored within the sender cookies <b>472</b> can now be used to identify the button ID <b>460</b> within the first host computer system <b>14</b>.

0193In <figref idref="DRAWINGS">FIG. 69</figref>, the user has selected the button <b>484</b> which, at <b>492</b>, initiates the session script <b>486</b>. The session script <b>486</b>, at <b>494</b>, retrieves the sender cookies <b>472</b> and, at <b>496</b>, makes a session call to the first host computer system <b>14</b>. The session call <b>496</b> includes the cookies <b>472</b>.

0194The first host computer system <b>14</b> includes a session responder <b>498</b> that receives the session call <b>496</b>. At <b>500</b>, the session responder <b>498</b> checks all data for the button ID <b>460</b> that has been received in the session call <b>496</b>. The data associated with the button ID <b>460</b> may include a bitcoin address <b>502</b>, although no bitcoin address may be included within the cookies <b>472</b> of the session call <b>496</b>. At <b>504</b>, the session responder <b>498</b> determines whether a bitcoin address was received in the cookies <b>472</b> of the session call <b>496</b>. If no bitcoin address was received, the first host computer system <b>14</b> executes a bitcoin address generator <b>506</b>. The bitcoin address generator <b>506</b> then generates a bitcoin address and, at <b>508</b>, stores the bitcoin address in association with the button ID <b>460</b>. The newly saved bitcoin address is represented as bitcoin address <b>510</b>. At <b>512</b>, the session responder <b>498</b> transmits the bitcoin address <b>510</b> that has been generated by the bitcoin address generator <b>506</b> to the sender computer system <b>464</b>. At <b>514</b>, the session script <b>486</b> stores the bitcoin address <b>510</b> in association with the button ID <b>460</b> within the sender cookies <b>472</b>. Upon a browser refresh, the process started at <b>466</b> in <figref idref="DRAWINGS">FIG. 68</figref> is restarted and all cookies are stored from earlier browser sessions are collected and transmitted by the startup caller <b>454</b>.

0195At <b>516</b>, the session responder <b>498</b> determines whether the sender computer system <b>464</b> is signed into a sender account. The determination is made based on whether a signed-in cookie is found among the cookies transmitted in the session call <b>496</b>. If no signed-in cookie is found, then the session responder <b>498</b> proceeds to <b>518</b>. At <b>518</b>, the session responder <b>498</b> sends a sign-in panel <b>520</b>, a sign-in script <b>522</b>, a listen code <b>524</b>, a third party payment script <b>526</b>, and a pull code <b>528</b> to the sender computer system <b>464</b>. The session script <b>486</b> creates an overlay window that includes the sign-in panel <b>520</b> with a sign-in button <b>530</b> having the sign-in script <b>522</b> associated therewith. The user can select the sign-in button <b>530</b> which, at <b>532</b>, initiates the sign-in script <b>522</b>. The sign-in script <b>522</b> creates and opens a further window (not shown) that allows the sender of the sender computer system <b>464</b> to enter login details <b>534</b> of a sender account <b>536</b>. At <b>540</b>, the sign-in script <b>522</b> signs the sender computer system <b>464</b> into the sender account <b>536</b> using the login details <b>534</b>. The sign-in script <b>522</b>, at <b>548</b>, stores a signed-in cookie <b>549</b> within the sender cookies <b>472</b>. The sign-in panel <b>520</b> further includes two payment selections, including a third party wallet button <b>544</b>, and a Quick Response (QR) code <b>546</b>. The third party payment script <b>526</b> is stored in association with the third party wallet button <b>544</b>. The listen code <b>524</b> and pull code <b>528</b> are stored in an executable manner within the sender computer system <b>464</b>. The session script <b>486</b> retrieves the bitcoin address <b>510</b> from the sender cookies <b>472</b> and displays the bitcoin address <b>510</b> within the sign-in panel <b>520</b>.

0196As shown in <figref idref="DRAWINGS">FIG. 70</figref>, if the determination at <b>516</b> is made that the sender computer system <b>464</b> is signed-in to the sender account <b>436</b>, or after the sender computer system <b>464</b> signs-in at <b>540</b> in <figref idref="DRAWINGS">FIG. 69</figref>, the session responder <b>498</b> proceeds to <b>550</b>. At <b>550</b>, the session responder <b>498</b> transmits a signed-in panel <b>552</b>, the listen code <b>524</b>, the third party payment script <b>526</b>, the pull code <b>528</b> and a host account payment script <b>554</b> to the sender computer system <b>464</b>. The signed-in panel <b>552</b> is the same as the sign-in panel <b>520</b> with the exception that it includes a host account button <b>556</b> instead of the sign-in button <b>530</b>. The third party payment script <b>526</b> is stored in association with the third party wallet button <b>544</b>. The host account payment script <b>554</b> is stored in association with host account button <b>556</b>.

0197Selection by the user of the host account button <b>556</b> initiates at <b>560</b> the host account payment script <b>554</b>. The host account payment script <b>554</b> transmits an instruction to the transaction processor <b>154</b> of the selection. At <b>561</b>, the transaction processor <b>154</b> makes a payment out of the sender account <b>536</b> to the receiver account <b>434</b> as hereinbefore described without going through the bitcoin network or the block chain.

0198At <b>564</b>, the transaction processor <b>154</b> updates the bits <b>480</b> by adding the bits of the present transaction to the bits <b>480</b> already stored within the data store. The bits <b>480</b> within the data store thus represent an ongoing tally of all payments made in association with the button ID <b>460</b>. The bitcoin addresses <b>502</b> and <b>510</b> represent bitcoin addresses that are generated for different sender computer systems <b>464</b> using the same button ID <b>460</b>.

0199After the host account payment script <b>554</b> transmits the instruction to the transaction processor <b>15</b>, the host account payment script <b>554</b> initiates the pull code <b>528</b>. The pull code <b>528</b>, at <b>574</b>, pulls the new bit count from the bits <b>480</b> in the storage of the first host computer system <b>14</b>. At <b>566</b>, the pull code <b>528</b> updates the bits <b>480</b> in the blog post <b>428</b> based on the bits that have been pulled by the pull code <b>528</b> in <figref idref="DRAWINGS">FIG. 70</figref>.

0200As shown in <figref idref="DRAWINGS">FIG. 71</figref>, the user selects the third party wallet button <b>544</b> which, at <b>560</b>, causes execution of the third party payment script <b>526</b>. The third party payment script <b>526</b> then transmits a transaction (of bitcoin to the bitcoin address <b>510</b>) to a third party transaction processor <b>562</b>. The third party transaction processor <b>562</b> is hosted by a host computer system other than the first host computer system <b>14</b>. At <b>564</b>, the third party transaction processor <b>562</b> broadcasts the transaction to the bitcoin network <b>12</b> and it is picked up by the blockchain.

0201The first host computer system <b>14</b> further includes a block chain checker <b>567</b> and a bit updater <b>568</b>. The block chain checker <b>567</b>, at <b>570</b>, periodically checks the block chain. For purposes of this discussion, the block chain checker <b>567</b> checks the block chain to determine whether there are any new transactions for the bitcoin addresses <b>502</b> and <b>510</b> stored in association with the button ID <b>460</b>. If the block chain checker <b>567</b> finds any further transactions, the block chain checker <b>567</b> notifies the bit updater <b>568</b>. At <b>572</b>, the bit updater <b>568</b> updates the bits <b>480</b> that are associated with the respective bitcoin address <b>502</b> or <b>510</b>. The bits <b>480</b> are updated by adding bits for any new transactions that have been picked up by the block chain checker <b>567</b>.

0202At <b>574</b>, the bit updater <b>568</b> transmits a push update notification to the sender computer system <b>464</b>. The listen code <b>524</b> receives the push update notification. Websocket technology may for example be used for the push update notification in order to open an interactive communication link. The listen code <b>524</b> is continuously active and therefore continuously listens for push update notifications. When the listen code <b>524</b> receives the push update notification, the listen code <b>524</b> initiates the pull code <b>528</b>. The pull code <b>528</b>, at <b>574</b>, pulls the new bit count from the bits <b>480</b> in storage. At <b>566</b>, the pull code <b>528</b> updates the bits <b>480</b> in the blog post <b>428</b> based on the bits that have been pulled by the pull code <b>528</b> in <figref idref="DRAWINGS">FIG. 70</figref>.

0203The QR code <b>546</b> may be scanned by an app on a mobile phone. The bitcoin address <b>510</b> is encoded in the QR code <b>546</b>. The app can decode the QR code <b>546</b> to extract the bitcoin address <b>510</b> and transmit a transaction (of bitcoin to the bitcoin address <b>510</b>) to a third party transaction processor such as the third party transaction processor <b>562</b>.

0204The button <b>484</b> shown in <figref idref="DRAWINGS">FIG. 69</figref> can be used as a Tip button. A user of the sender computer system <b>464</b> can use the button <b>484</b> to make a small discrete payment to the user of the receiver computer system <b>424</b>. Such a payment may, for example, be as a reward for the content of the blog post <b>428</b>.

0205<figref idref="DRAWINGS">FIG. 72</figref> shows a system <b>600</b> for transacting bitcoin. An Internet interface <b>602</b> allows for user computers (user computers A to C) to connect to the system <b>600</b> over the Internet. Order gateways <b>604</b> are connected to the Internet interface <b>602</b> to receive buy and sell offers via the Internet interface <b>602</b> from the user computers A to C. A matching engine <b>606</b> is connected to the order gateways <b>604</b>. The matching engine <b>606</b> can receive the buy and sell offers from the order gateways <b>604</b>.

0206A feed generator <b>608</b> is connected to the Internet interface <b>602</b>. The matching engine <b>606</b> provides an output to a multicast pipeline <b>610</b>. The feed generator <b>608</b> is connected to the multicast pipeline <b>610</b>. The feed generator <b>608</b> receives the buy and sell offers from the multicast pipeline <b>610</b> and displays any buy and sell offers via the Internet interface <b>602</b> to the user computers A to C. Users can thus view any buy and sell offers already in the system before making their own buy and sell offers.

0207The matching engine <b>606</b> can match buy and sell offers and broadcast the matches to the multicast pipeline <b>610</b>. The feed generator <b>608</b> displays the matches via the Internet interface <b>602</b> to the user computers A to C.

0208An exchange database <b>612</b> includes records of bitcoin and currency held by users A to C corresponding to the user computers A to C. A clearing module <b>614</b> is connected to the multicast pipeline <b>610</b> and receives matches from the multicast pipeline <b>610</b>. An exchange <b>616</b> is connected to the clearing module <b>614</b>. The exchange <b>616</b> is also connected to the Internet interface <b>602</b>. Users at the user computers A to C can provide instructions via the Internet interface <b>602</b> to the exchange <b>616</b> to transfer bitcoin or currency. The exchange <b>616</b> has a number of functions, including calculating total amounts of bitcoin and currency as represented in the exchange database <b>612</b>, cross checking bitcoin and currency totals between the exchange database <b>612</b> and an exchange user <b>618</b>, transferring bitcoin and currency between wallets A to C that correspond respectively to the users A to C in the exchange database <b>612</b>, updating bitcoin and currency amounts of the users A to C in the exchange database <b>612</b>, and may receive and execute instructions from the clearing module <b>614</b> to transfer bitcoin and currency between the users A to C in the exchange database <b>612</b>.

0209The exchange is connected to a ledger <b>620</b>. The ledger <b>620</b> hold records of wallets A to C and further functions to cross-check balances between the exchange database <b>612</b> and exchange user <b>618</b>.

0210<figref idref="DRAWINGS">FIG. 73</figref><i>a </i>shows the beginning of a transfer-in algorithm that is executed by the system <b>600</b>. A user at user computer A has $10 of currency in the exchange database <b>612</b>. For purposes of discussion, no other users have any bitcoin or currency. The exchange <b>616</b> calculates the total amount of currency and bitcoin within the exchange database <b>612</b> and records the total amount as $10 and 0 bitcoin. The exchange user <b>618</b> has $10, representing a previous transfer from wallet A to the exchange user <b>618</b>.

0211At <b>1</b><i>a</i>, a user at user computer B requests a transfer via the Internet interface <b>602</b>. The transfer may for example be to transfer $20 from wallet B to the exchange user <b>618</b>. At <b>1</b><i>b</i>, the Internet interface <b>602</b> provides the transfer request to the exchange <b>616</b>. At <b>2</b><i>a</i>, the exchange <b>616</b> sends a cross-check request to the ledger <b>620</b> and at <b>2</b><i>b </i>the ledger <b>620</b> cross checks the totals in the exchange database <b>612</b> and the exchange user <b>618</b> before proceeding with a transfer. In the present example, the exchange database <b>612</b> has $10 and 0 bitcoin and the exchange user <b>618</b> has $10 and 0 bitcoin. The totals therefore match. If either the currency or bitcoin totals do not match, the exchange <b>616</b> does not make any further transfers and provides an alert to an operator. The operator will then remedy any mismatches and then reactivate the exchange <b>616</b>. Because the totals match, the exchange <b>616</b> proceeds with the transfer.

0212As shown in <figref idref="DRAWINGS">FIG. 73</figref><i>b</i>, the exchange <b>616</b>, at <b>3</b>, transfers $20 from wallet B to the exchange user <b>618</b>. The exchange user <b>618</b> calculates the total amount held by the exchange user <b>618</b> as $30, representing the $10 that was there before the transfer plus another $20 because of the transfer.

0213At <b>4</b><i>a</i>, the exchange <b>616</b> records $20 for user B in the exchange database <b>612</b>. At <b>4</b><i>b</i>, the exchange <b>616</b> updates the totals and records a total amount of $30, representing the $10 held by user A and the $20 that has been added for user B.

0214<figref idref="DRAWINGS">FIG. 73</figref><i>c </i>illustrates the totals in the exchange database <b>612</b> and the exchange user <b>618</b> after a further transfer wherein a user at the user computer C has requested a transfer of 5 bitcoin from wallet C to the exchange user <b>618</b>. The exchange user <b>618</b> now holds 5 bitcoin and $30. User C, within the exchange database <b>612</b>, now holds 5 bitcoin. The totals held with the exchange database <b>612</b> are $30 and 5 bitcoin. For purposes of discussion, this ends the transfer-in algorithm that was started in <figref idref="DRAWINGS">FIG. 73</figref><i>a. </i>

0215<figref idref="DRAWINGS">FIG. 73</figref><i>d </i>shows a trading algorithm that is carried out after the transfer-in algorithm if <figref idref="DRAWINGS">FIGS. 73</figref><i>a </i>to <b>73</b><i>c</i>. At <b>5</b><i>a</i>, a user (buyer) at user computer A submits a buy offer of 2 bitcoin at $5 each ($10 total). As noted previously, all offers are transmitted via the Internet interface <b>602</b>, one of the order gateways <b>604</b>, the matching engine <b>606</b> and the multicast pipeline <b>610</b> to the feed generator <b>608</b> which displays the offers on the Internet interface <b>602</b>. A user at user computer C can thus see the buy offer submitted by the user at user computer A. At <b>5</b><i>b</i>, the user (seller) at user computer C submits a sell offer for 2 bitcoin at $5 each to the Internet interface <b>602</b>. At <b>5</b><i>c</i>, the buy and sell offers are submitted by the Internet interface <b>602</b> to one of the order gateways <b>604</b>. At <b>5</b><i>d</i>, the order gateway <b>604</b> provides the buy and sell offers sequentially to the matching engine <b>606</b>.

0216As mentioned, the user at user computer C can see the buy offer of the user at user computer A before submitting the sell offer. In another example, the user at user computer C can first submit the sell offer and the sell offer can be seen by the user at user computer A. The buy and sell offers will typically be received by the matching engine <b>606</b> at different times.

0217Multiple users may submit one or more buy and sell offers. The matching engine <b>606</b> attempts to match the buy and sell offers to one another. At <b>6</b>, the matching engine <b>606</b> has matched the buy and sell offers received from users at the user computers A and C.

0218The matching engine <b>606</b> then provides a broadcast of the match over the multicast pipeline <b>610</b> discussed with reference to <figref idref="DRAWINGS">FIG. 72</figref>. At <b>7</b><i>a</i>, the feed generator <b>608</b> receives a multicast that includes the match. At <b>7</b><i>b</i>, the clearing module <b>614</b> receives the same multicast that includes the match. At <b>8</b>, the feed generator <b>608</b> provides a feed to the Internet interface <b>602</b> that includes the match. As previously mentioned, the feed generator <b>608</b> also provides a feed of buy and sell offers to the Internet interface <b>602</b>.

0219At <b>9</b><i>a</i>, the clearing module <b>614</b> updates user A within the exchange database <b>612</b> by adding 2 bitcoin and subtracting $10 from user A. At <b>9</b><i>b</i>, the clearing module <b>614</b> updates user C by subtracting 2 bitcoin from and adding $10 to user C. The clearing module <b>614</b> makes the updates directly to the exchange database <b>612</b>.

0220There is no need for recalculating the totals within the exchange database <b>612</b> at this stage. The same amount of currency or bitcoin that has been subtracted from one user has been added to another user. The exchange database <b>612</b> thus still indicates totals of $30 and 5 bitcoin.

0221<figref idref="DRAWINGS">FIG. 73</figref><i>e </i>shows a withdrawal algorithm that can be carried out after the trading algorithm in <figref idref="DRAWINGS">FIG. 73</figref><i>d</i>. At <b>10</b><i>a</i>, a user at user computer C requests a withdrawal of, for example, $10. The request is received via the Internet interface <b>602</b> and is passed on to the exchange <b>616</b> at <b>10</b><i>b. </i>

0222At <b>11</b><i>a</i>, the exchange <b>616</b> sends a cross-check request to the ledger <b>620</b> and at <b>11</b><i>b </i>the ledger <b>620</b> cross checks the totals before proceeding. In the present example, the amount of bitcoin in the exchange user <b>618</b> and the total amount of bitcoin represented in the exchange database <b>612</b> are the same and the total currency amount in the exchange user <b>618</b> and in the exchange database <b>612</b> are the same. Should either of these two comparisons result in a mismatch, the exchange <b>616</b> will not make any withdrawal and create an alarm for an operator.

0223As shown in <figref idref="DRAWINGS">FIG. 73</figref><i>f</i>, at <b>12</b>, the exchange <b>616</b> transfers $10 from the exchange user <b>618</b> to the wallet C. The exchange user <b>618</b> now has $20, representing the $30 in <figref idref="DRAWINGS">FIG. 73</figref><i>e </i>minus the $10 that has been transferred out. At <b>13</b><i>a</i>, the exchange <b>616</b> adds a representation for user C in the exchange database <b>612</b> showing a withdrawal of $10. At <b>13</b><i>b</i>, the exchange <b>616</b> updates the totals. Because user C has made a withdrawal of $10, the total currency amount within the exchange database <b>612</b> amounts to $20. The amount of bitcoin is still the same. The total amounts in the exchange user <b>618</b> and in the exchange database <b>612</b> are thus the same.

0224Other users may submit similar withdrawal requests. For example, a user at user computer A may request a withdrawal of 1 bitcoin. The exchange <b>616</b> then cross checks the total amounts, makes a transfer of 1 bitcoin from the exchange user <b>618</b> to wallet A and updates the exchange database <b>612</b> by deducting 1 bitcoin from user A and updates the total amount of bitcoin to 4 bitcoin.

0225<figref idref="DRAWINGS">FIG. 74</figref> shows a diagrammatic representation of a machine in the exemplary form of a computer system <b>900</b> within which a set of instructions, for causing the machine to perform any one or more of the methodologies discussed herein, may be executed. In alternative embodiments, the machine operates as a standalone device or may be connected (e.g., networked) to other machines. In a network deployment, the machine may operate in the capacity of a server or a client machine in a server-client network environment, or as a peer machine in a peer-to-peer (or distributed) network environment. The machine may be a personal computer (PC), a tablet PC, a set-top box (STB), a Personal Digital Assistant (PDA), a cellular telephone, a web appliance, a network router, switch or bridge, or any machine capable of executing a set of instructions (sequential or otherwise) that specify actions to be taken by that machine. Further, while only a single machine is illustrated, the term “machine” shall also be taken to include any collection of machines that individually or jointly execute a set (or multiple sets) of instructions to perform any one or more of the methodologies discussed herein.

0226The exemplary computer system <b>900</b> includes a processor <b>930</b> (e.g., a central processing unit (CPU), a graphics processing unit (GPU), or both), a main memory <b>932</b> (e.g., read-only memory (ROM), flash memory, dynamic random access memory (DRAM) such as synchronous DRAM (SDRAM) or Rambus DRAM (RDRAM), etc.), and a static memory <b>934</b> (e.g., flash memory, static random access memory (SRAM, etc.), which communicate with each other via a bus <b>936</b>.

0227The computer system <b>900</b> may further include a video display <b>938</b> (e.g., a liquid crystal displays (LCD) or a cathode ray tube (CRT)). The computer system <b>900</b> also includes an alpha-numeric input device <b>940</b> (e.g., a keyboard), a cursor control device <b>942</b> (e.g., a mouse), a disk drive unit <b>944</b>, a signal generation device <b>946</b> (e.g., a speaker), and a network interface device <b>948</b>.

0228The disk drive unit <b>944</b> includes a machine-readable medium <b>950</b> on which is stored one or more sets of instructions <b>952</b> (e.g., software) embodying any one or more of the methodologies or functions described herein. The software may also reside, completely or at least partially, within the main memory <b>932</b> and/or within the processor <b>930</b> during execution thereof by the computer system <b>900</b>, the memory <b>932</b> and the processor <b>930</b> also constituting machine readable media. The software may further be transmitted or received over a network <b>954</b> via the network interface device <b>948</b>.

0229While certain exemplary embodiments have been described and shown in the accompanying drawings, it is to be understood that such embodiments are merely illustrative and not restrictive of the current invention, and that this invention is not restricted to the specific constructions and arrangements shown and described since modifications may occur to those ordinarily skilled in the art.