Bitfinex to Use BitGo Multisig Wallets Following Hacking

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term exchange Bitfinex has become the next major player to employ BitGo's multisignature wallets, learning its lesson after suffering a hacking in which it possibly lost funds.

They follow the lead of Bitstamp, another USD-bitcoin exchange, which earlier this year reported losses equaling roughly $5 million after a hot wallet attack, and subsequently turned to BitGo's solution.

Multisignature wallets require more than one key to sign a transaction, vastly reducing the chances of successful attacks. Multisig solutions such as those of BitGo have held up well thus far and have yet to be compromised. They are becoming increasingly standard throughout the industry, having been adopted by numerous enterprises with large holdings.

In addition to multisig, the BitGo solution also segregates the funds of each client, keeping fewer eggs in one basket. Traditionally, brokers in the trading industry, whether crypto or otherwise, keep client funds bundled together.

With BitGo's scheme, any transfer to/from a client account must be processed over the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term, which increases its traceability. Said Zane Tackett, Director of Community & Product Development at Bitfinex:

"The era of commingling customer Bitcoin and all of the associated security exposures is over. The trading community has long sought individually verifiable accounts without sacrificing security or performance. With the help of BitGo’s multi-signature technology, the Bitfinex team is very excited to be the first exchange in the world to automate Bitcoin settlements using ‘On-Blockchain’ customer segregated wallets."

Bitfinex is currently the world's largest USD-based bitcoin trading venue, based on published trading figures from the past 30 days.