Bitcoin security platform BitGo has debuted its “Verified by BitGo” proof-of-solvency service. The service has already been adopted by micropayment service ChangeTip, providing a real-time view of bitcoin assets and assuring ChangeTip’s customers and partners of adequate funds. Companies using BitGo’s security platform can adopt and use BitGo’s solvency service to provide financial transparency.
ChangeTip, a service for sending ‘tips’ via social media, email or text message, will use “Verified by BitGo” to allow customers to demonstrate solvency of their accountsservice.
BitGo CTO and co-founder Ben Davenport, commented:
BitGo’s mission is to help make the bitcoin ecosystem more secure, and we’re now excited to be taking the next major step in that direction. Today we are launching our Verified by BitGo service, bringing the era of unverified funds to a close.
Up until recently, Bitcoin businesses and operations were not able to provide a public, trustless verification that they were operating in a solvent state. Past funds verification attempts included periodic movement of coins or manual signing messages, but these steps proved cumbersome and often opened new security and privacy risks.
The “Verified by BitGo” service apparently offers transparency as a service, allowing any business to easily show its assets and cryptographically prove that it is operating in a solvent state. Now, end users of businesses using the service can view that the company’s assets are greater than its liabilities, and verify that his or her account is included in the total liabilities.
ChangeTip CEO Nick Sullivan said:
Building trust is critical to expanding our user base within the bitcoin community and beyond, and using BitGo to demonstrate our Proof of Reserves goes a long way to achieving it. We believe that the combination of digital currencies and social payments across multiple social platforms will pay off the long-held promises of micropayments. ChangeTip is ideally positioned to deliver on that promise.
BitGo has created a suite of products suitable for securing any Bitcoin operation or transaction. BitGo’s multi-sig wallets protect both private and institutional holdings in either hot or cold storage. A series of corporate management tools allow enterprises to complete any institutional treasury function with complete security and control. A flexible and scalable API offering allows established or startup Bitcoin operations to build out services protected by the most highly regarded security infrastructure in the Bitcoin industry. Additionally, BitGo has partnered with C4 to introduce the CryptoCurrency Security Standard, a template for certifying the 10 fundamental aspects of cryptocurrency security. BitGo also introduced comprehensive insurance coverage for bitcoin theft from the global, A-rated XL Group insurance companies, offering a baseline $250,000 protection for all commercial customers, and is pioneering a variety of proof-of-reserve products suitable for exchange, trading desk, and retail use.
ChangeTip is the public name for ChangeCoin, a company focused on providing fast, frictionless micropayments. The company offers free U.S. and cross-border micropayments across multiple social platforms. These tips are sent within the context of each social platform experience and thus allow users to transact seamlessly in the normal course of their Twitter, Reddit, YouTube and other social media interactions. Built using bitcoin blockchain technology, the company’s platform allows instant transactions between two parties without formal sign-up processes and days-long waiting periods for bank account and other traditional user validations. In addition, the company’s Tip.Me widget permits content providers such as artists, writers, musicians, publications, and more, to accept tips via social media on the ChangeTip platform.