2016-01-19] BitGo Launches 'Instant' Bitcoin Transaction Tool

[a7mos]

BitGo Launches 'Instant' Bitcoin Transaction Tool

Bitcoin security firm BitGo has launched a new service that aims to allow clients to accept bitcoin transactions prior to their official confirmation on the blockchain.

Called BitGo Instant, the offering aims to allow users to accept transactions more quickly, while guarding against the possibility that funds could be 'double spent' or otherwise altered before they settle against the bitcoin ledger.

At launch, BitGo said major exchanges including Bitstamp, Bitfinex and Kraken had already signed on as users of the service. Other notable partners include altcoin trading service ShapeShift and the e-commerce app Fold.

http://www.coindesk.com/bitgo-instant-bitcoin-transaction-tool/

[shadypepe]

This sounds dumb to me, the whole point of bitcoin/blockchain is that you don't need another layer/trusted party on top of the settlement layer. This wouldn't eliminate fraud, it would just shift the costs to someone else, just as the current system (VISA etc.) does.

Thought through, this would reduce settlement time from the current standard of t+1 - t+3 (depending on whether SEPA/US) to 1 hour (6 confirms). Not very revolutionary as t+0 is already in planning for traditional clearing and settlement systems.