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Things We Find Interesting in Cryptocurrency

Apr 06

BitGo API

By Raymond Prince

A quick Google search for the words "Mt Gox" or "Bitstamp" will highlight the continuous secruity concerns associated with storing your Bitcoins with a third party. These security concerns have detered many merchants, who would otherwise have been glad to accept Bitcoin as a payment method.

There is great news for all merchants. As of the 2nd of February 2015, BitGo have made their BitGo Platform API available for general public. This means that all merchants will now be able to make use of BitGo's enterprise quality bitcoin wallet.

The API (Application Programming Interface) will allow merchants to integrate BitGo's wallet into their software, thus taking full advantage of Bitcoin, while avoiding having to give over control of their bitcoins to a thirdparty. This API means that they need not develop their own wallet software, which in turn protects merchants from opening themselves up to many potential security challenges, that have recently plagued the Bitcoin community.

BitGo's Platform API will mean that Bitcoin can now be integrated into so many more products quickly and easily, while maintaining the high standard of security the wallet has always provided. BitGo's own Enterprise Web Wallet has been built on this API, and therefore has already received large amounts of real world testing.

As part of BitGo's security system, BitGo holds a security key for every wallet that is created using their API. They use this security key to cosign all transactions originating with that wallet. BitGo will validate the transaction against its own fraud detection, business logic and treasury policies. Merchants will still be able to use thirdparty cosigning if they wish to bypass the BitGo system.

This development comes at the perfect time, as more companies are adopting cryptocurrency as a viable alternative and addition to traditional payment systems. These companies require a scalable and secure method of accepting and controlling bitcoin internally. Users can get excited as well as they will see more companies integrating Bitcoin into their product offerings.