Bitalo is the first exchange service to use multi-signature and time lock transactionsBitalo AG aims to revolutionize the security standards in Bitcoin services with a new peer-to-peer trading and wallet service. Its goal is to keep user funds provably safe under all circumstances.
Bitalo uses three key technologies: multi-signature wallets, time lock transactions and the MePIN two-factor authentication. Users don't give up control over their money unlike when sending it into traditional banks or cryptocurrency exchanges. In a worst-case scenario where the whole service is shut down or all data is compromised, users alone are still in control of their funds.
Bitalo is the first exchange to combine these characteristics which make it a perfect match for Bitcoin – a trustless, decentralized currency.
As a promotion, new users do not pay any escrow fees until the end of June 2014.
For more information, see our video and a more detailed summary of the Bitalo security architecture below.
https://www.youtube.com/watch?v=EcYHOZeb6LA A summary of the Bitalo security architecture:
Multi-signature transactions are used to move bitcoins, and they must be signed by both the user and the Bitalo server using their private keys. The user’s key is generated and encrypted in the user's browser, and the encryption password is chosen by the user. Only the encrypted key is ever stored on the server. When bitcoins are sent, the user's key is decrypted and used to sign the transaction in the user’s browser. Client side code is open source and can be verified by the community.
Audits can be done using third-party blockchain explorers, since wallets are actual Bitcoin addresses on the blockchain. This way users can ensure that all funds are in their wallets and get a proof that Bitalo runs a full-reserve Bitcoin service.
Escrow is implemented using "time lock" transactions. Bitalo has no access to traded bitcoins if a trade completes in a pre-defined time period (e.g. two weeks). If the buyer and seller disagree after this period, the service gets temporary access to the traded bitcoins to resolve the dispute.
FIAT money is not stored or handled by Bitalo – all transactions go directly between users, and money can't be seized from Bitalo or lost by the service.
A recovery "time lock" transaction is sent to the user after each transfer. Using these pre-signed transactions, users can recover all their funds in case of a complete shutdown.
Two-factor authentication is mandatory using MePIN as the authentication method. This keeps bitcoins safe even if an account is set up using a compromised computer. This is not the case with Google Authenticator based two-factor solutions, as an intruder can steal the two-factor code during the setup process.
About MePIN:
MePIN / Meontrust Inc was founded in mid 2010 to make peoples’ online life easier by providing a simple and safe way to access their numerous web services. As an international company, Meontrust has customers and partners all around the world.
Contact:
https://www.mepin.com/About Bitalo AG:
Bitalo was founded in May 2013 as German stock corporation (Aktiengesellschaft) in Wachenheim an der Weinstraße with a stock capital of 155.000 EUR and strives to combine an exchange and wallet service with multiple other Bitcoin related services. Bitalo is also taking the lead in terms of security and be the first integrated exchange service implementing highly secure multi-signature wallets & trading.
Contact info:
email:
martin@bitalo.comweb:
https://www.bitalo.com/
