BitGo Launches Bitcoin Trading Tool 'Instant'

Bitcoin securities firm BitGo has launched a new service that allows clients to accept bitcoin transactions before they are officially confirmed on the blockchain.

The service, called BitGo Instant , is designed to allow users to receive transactions more quickly in case the funds are “double-spent,” or altered, before they settle their bitcoin ledger.

At the launch event, BitGo said that major exchanges Bitstamp , Bitfinex and Kraken have already signed up users. Other notable partners include altcoin trading service ShapeShift and e-commerce app Fold.

In an interview with the media, BitGo Chief Technology Officer Ben Davenport said that this service will help bitcoin companies provide a better user experience for customers who are eager to use digital currencies. Although digital currencies are advertised as fast and free, users have to wait for 10 minutes or even more for network confirmation.

And, according to Davenport , the service is very attractive to active bitcoin traders because they can take advantage of their ability to move funds faster.

Davenport told CoinDesk :

     “This service is designed to increase transaction speed without compromising security. We are working to overcome some of the shortcomings of Bitcoin’s settlement process, which can currently take up to 120 minutes.”

BitGo said it came up with the idea for the service after industry startups like Coinbase and ShapeShift fell victim to double-spending attacks. Davenport said the service would allow the companies to quickly approve transactions when they receive assurances that a payment has failed.

“When someone wants to send a real-time transaction, we do a certain amount of risk control. We create cryptographically signed guarantees that are part of the transaction, ” Davenport said, adding:

“ Recipients who did not receive transaction funds can make claims, and we fully support this approach.”

When a user executes a BitGo Instant transaction, BitGo will co-sign the transaction with one of three keys in its multi-signature wallet. This third key is held by the key recovery service.

However, Davenport noted that the service can be used even without a BitGo wallet, adding that “anyone can go and accept transactions.”

According to the terms of service, users do not need to pay any fees when receiving money, but if the transaction is more than 1 Bitcoin, the sender must pay a 0.1% handling fee.

Disclaimer: Coinbase is a subsidiary of BitGo Digital Currency Group.