HaoBTC Wallet Relies on TangPool Mining 3rd Party Key Cold Storage

Chinese Bitcoin wallet startup HaoBTC, which literally means Good Bitcoin, recently launched its beta site.

The Beijing based firm currently has two offerings, a multi-signature technology wallet and an interest bearing Bitcoin current account.

The wallet utilizes a 2-3 multi-signature encryption model. The operating principle being that two keys are needed simultaneously to use the stored bitcoins. Each of the two keys must match one of three issued keys, where the user owns a key, one key is “managed” by HaoBTC, and one is held in third party cold storage provided by Chinese mining firm TangPool.

The 2-3 multisig apparently mitigates risk of loss of bitcoins due to currency theft, hacking, and hardware failure.

HaoBTC CEO Wu Gang and TangPool CTO Pan Zhibiao discussed the partnership in an interview recently featured on a number Chinese language bitcoin-focused websites including Bikeji, Yibite, and BTCSide.

The reason that it was carried on Bikeji, a popular Reddit-style rewards discussion forum, is that Wu Gang is the founder. In November, Wu conducted a crowdsale of ownership  in the site to users raising 85 BTC in a few hours. He sold each 1/100 share of the site for one BTC, retaining 15/100s for himself.