- January 19, 2016
- Posted by: Bitcoin Center NYC
- Category: The Latest Bitcoin News
Summary: BitGo, the leading multi-signature wallet service provider, has released a new product called “BitGo Instant.” It allows BitGo customers to make instant transactions with BitGo partners, including Bitcoin exchanges BitStamp, BitFinex, and ShapeShift.io’s no-account-needed Altcoin exchange.
For the user, this means that as soon as they send a Bitcoin transaction the funds will be credited to their account — no more waiting for multiple blockchain confirmations.
The multi-signature BitGo wallet requires two keys to initiate a Bitcoin transaction. The user holds one key and BitGo holds the other; when a user broadcasts a transaction with their key, BitGo will automatically sign the transaction with the other key, thus completing the transaction.
This system allows BitGo to financially guarantee unconfirmed transactions sent to their partners that have signed up for the Instant service because if a user attempts to double spend, BitGo will not sign the second the transaction, ensuring the first one will be the one recorded in the blockchain.
There are no fees for transactions up to 1 BTC and a 0.1% fee for transactions larger than 1 BTC.
BitGo is not the first company to offer instant Bitcoin transactions; when a merchant uses Coinbase as their Bitcoin payment processor and the customer sends funds from a Coinbase wallet, the transaction is also instant. However, BitGo’s Instant transaction solution occurs “on chain” whereas Coinbase transfers the funds through their internal system.
More details are available on BitGo’s website.