Coinbase keeps 5% of all Bitcoin, and 25% of all Litecoin
Home News Coinbase keeps 5% of all Bitcoin, and 25% of all Litecoin
Marcus Misiak –
A couple of weeks ago Whale Watcher noticed on Twitter that unusually large amounts of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) between crypto-Wallets. Some seemingly “crazy” theorists speculated that the transactions were the result of Coinbase and its secret operational security practices. How Coinbase now confirmed, were the suspicions are correct.
How Coinbase confirmed in a recently published blog post, many of these “whale”transactions, in fact on internal security measures. The company revealed in the post that it has recently moved 5% of all Bitcoin, 8% of Ether and 25% of all Litecoin in circulation, a number of transactions in the Coinbase presumably as “the largest crypto-Migration since the inception of the study”. And from the looks of it, is the dollar value of stocks that the company owns, fabulous $ 5 billion in value. The number of transactions means the largest series of transactions that were performed by a single entity, be it a crypto company, a whale, an investment group or Satoshi Nakamoto himself.
According to the blog post was one of the main reasons for the transactions, the lengthy pre-planned security upgrade, the stock exchange and has prepared its current-Token-extension, when in the last few months a number of new crypto-currencies in the case of Coinbase have been introduced. Originally, the business model of Coinbase focused on a few crypto-currencies – Bitcoin, Ethereum, Bitcoin, Cash, and Litecoin. Since a few months the stock market has, however, added, among other things, also Ethereum Classic (ETC), Basic Attention Token (BAT) and Zcash (ZEC). Just yesterday, the stock added four additional Token – Golem, DAI, Maker and Zilliqa.
New Coinbase Storage Facility explains
What relates to the underlying fundamentals, and the newly-updated Coinbase-storage system originally began in October, where the technical Team led a key generation process. In short, the process was to create a set of keys, and through the support of scan-friendly QR-Codes these keys were divided then.
The cryptographic process, also known as Shamir’s Secret Sharing is a mechanism that is used to keep private data safe and protected. After the division of the key, these are then distributed to multiple locations – multiple Coinbase employees must turn together. Although this process sounds very similar to a Multisig Wallet, there is the essential difference in the fact that he is not with crypto-currencies, which would otherwise be suitable.
Coinbase added that this System reduces the risk of key losses and abuse, and at the same time “first-class Key Governance and Audit, while it is currency-independent”. To create in the face of the aspirations of the stock exchange an excellent relationship with the US regulators and institutional attract investment, Coinbase probably hope that your new storage system will convince users that it is the platform of choice for large investors.