If you follow digital currency news, it’s likely you remember the crumbling of Bitcoin exchange Mt. Gox in February. The site went bankrupt when 850,000 Bitcoins (then worth around $450 million) were stolen from users’ accounts.
Coinbase today launched a new product, Coinbase Vault, that aims to keep it from sharing Mt Gox’s fate by keeping a portion of users’ bitcoin safe from hackers and unauthorized withdrawals.
The free new account has three features that contribute to increased security:
- Time-delayed withdrawals
There is a 48-hour waiting period before withdrawals are transferred from the Vault account. During the waiting period, the transaction can be cancelled at any time.
- Multiple approvers
For joint accounts, approval from multiple parties is required in order to begin the withdrawal.
- Offline storage
97% of bitcoin is held offline in safe deposit boxes.
Coinbase showcased Instant Exchange at FinovateSpring 2014. You can check out the demo video here.