Blockchain firm BitGo announced the launch of their “zero-confirmation” bitcoin payment service called BitGo Instant. Typically, bitcoin payments take some time to be confirmed on the network (between 10 minutes and 1 hour), which causes inconvenient delays for merchants and users.
BitGo Instant solves this issue by using multi-signature wallets, where BitGo acts as co-signer of the transaction:
“BitGo Instant wallets consist of 3 cryptographic keys: one held by BitGo, one held by the user, and one held on behalf of the user by a third-party Key Recovery Service (KRS). Two signatures are required on every transaction on a BitGo wallet, and in the usual case this would be done by BitGo and by the user.”
This service is not only useful for the average user, but also for the active bitcoin trader. Bitcoin is a very volatile digital currency and traders benefit greatly by being able to move funds in and out of exchanges instantly.
“BitGo Instant means traders no longer have to pre-position bitcoin funds at exchanges they intend to trade on, since funds held in any Instant-capable BitGo wallet can be moved in seconds to the exchange with the best price.”
The service is supported by some of the largest digital currency exchanges such as Bitfinex, Bitstamp, Kraken and Shapeshift. Users sending amounts smaller than 1 BTC do not have to pay any fees, while transactions over 1 BTC carry a 0.1% fee.
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