UPDATE: Read about BitGo Instant on Forbes.com HERE
Great news for BitGo wallet users! ShapeShift has integrated with BitGo Instant in order to offer BitGo wallet users with even faster exchanges on ShapeShift.io. Although ShapeShift already processes some orders with zero-confirmation (based on multiple factors), BitGo wallet users will now get zero-confirmation on every single deposit no matter what. This means faster, more secure trading for you. We are pretty excited about this for our BitGo customers.
BitGo’s website describes this new Instant offering:
Prior to BitGo Instant, typical transactions took 10 minutes or more to be recorded in a block by miners. Until confirmed in the blockchain, transactions are known as “zero-confirm” transactions, and are unsafe to rely on. This is because without BitGo Instant’s guarantee, it is possible for the sender to spend the money elsewhere before the transaction is confirmed. As a result, most Bitcoin businesses require multiple confirmations to credit a deposit, which can take anywhere from 30 minutes to several hours. With BitGo Instant, funds can be available immediately after receipt.
How does it work? BitGo Instant wallets consist of 3 keys: one held by BitGo, one held by the user, and one held on behalf of the user by a third-party Key Recovery Service (KRS). Two signatures are required on every transaction on a BitGo wallet, and in the usual case this would be done by BitGo and by the user. BitGo, of course, will never co-sign a transaction which is a double spend. That leaves only the possibility of the user and the KRS conspiring to double spend. To prevent this, BitGo has contracts in place with any KRS it uses which requires the KRS to give BitGo advance notification of any signature it makes.
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