Leading bitcoin platform, multi-sig vault service provider and bitcoin merchant payment processor Coinkite has powered more than USD$250 million over the past three months, processing around 10 percent of the world’s total daily bitcoin transactions.
“It is remarkable what can be done with the right team and bitcoin. We are processing 5 to 10 percent of all bitcoin transactions. Over the past two years that we’ve been in business, we have never lost customer funds. I hear even well-funded competitors are pivoting away from our space due to our unparalleled uptime, security and the feature-rich bitcoin platform that we offer,” announced Coinkite CEO Rodolfo Novak.
Today, Coinkite backs businesses and individuals in more than 180 countries to support, send and receive bitcoin instantly and securely.
The bitcoin platform has seen a significant increase in volume since its previous quarter due to its trending multi-signature vault service and the increase in bitcoin sales of its supported startups.
“It’s close to 40 percent increase and is due to better communication, our unparalleled features, truly enterprise-class uptime and a greater volume from startups that had their services providers not be able to cope with their transactions. We even hold funds for some competitors,” the Coinkite team told Bitcoin Magazine.
The Coinkite team further explained that the reason behind the platform’s substantial increase in bitcoin volume is its expansion and diversification of its services. Although the startup declined to disclose the names of bitcoin platforms that are using its services, Coinkite told Bitcoin Magazine that the platform’s bitcoin vault service has been a vital factor of the startup’s success.
Coinkite provided Bitcoin Magazine with an infographic of its enterprise-level services and products. The Coinkite platform connects a user to five services, including web-wallet API for developers, multi-sig wallet, Coinkite co-sign, bitcoin vault and bitcoin exchange platform, providing an all-around bitcoin platform for its users.
HSM (Hardware Security Module)
Coinkite explains that the number of developers using its API has increased substantially over the past few months, after the release of the platforms HSM or Coinkite co-sign, a robust solution to secure and hold bitcoins safely.
“We built the HSMs because we couldn’t find a robust solution for our services over two years ago. It is the only secure and sane way of scaling bitcoin solutions for users and developer’s API,” the Coinkite team said.
Hardware Security Module stores key data in hardware separate from the server. With several tamper-proof security measures, HSM secures bitcoin of its users on the platform by preventing the theft of the keys. In a potential data breach, hackers may obtain vital information from the server, but the safeguards of HSM prevent hackers from stealing the keys, thus, eliminating a large probability of bitcoin theft.
“Our system is designed in such a way that even if our web servers were to be compromised, the private keys that protect the funds are not stored on those machines. The private keys for your funds are stored exclusively on our custom HSM Hardware Security Module which is carefully isolated from the web servers and the Internet,” said the Coinkite team.
Joseph is a web developer and designer, writer and a passionate musician who loves to travel. He has worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines.