It’s been know that Mt. Gox had issues for a long time now. I’m glad this chapter is finally over and professional companies can take crypto-currencies forward.
We have a big commitment to transparency, users funds are segregated and allocated to their own private key. We believe that all web wallets, exchanges and websites holding your funds should provide proof of reserves — users should demand it.
We would like to reassure all of our customers that transaction malleability does not in any way impact our wallet implementation at Coinkite.
All funds at Coinkite are fully segregated between customers and we don’t use the Bitcoin transaction numbers (transaction hash) to link deposits into customers’ accounts. Instead, our world-class custom wallet decodes the public keys inside each transaction, just as a properly engineered bitcoin wallet should.
Coinkite is built to work natively with crypto-currencies such as Bitcoin and Litecoin. It is not an accounting system built on top of a standard bitcoind (the reference P2P bitcoin client). We do not typically generate send transactions that are sensitive to malleability, and if someone should send funds contaminated that way into Coinkite, we rely on miners to confirm the funds into the block chain.
We do allow our customers to accept zero-confirmation transactions, but we don’t recommend it. At Coinkite, we appreciate and want to recognize the critical function that miners bring to the ecosystem. Without them vetting transactions and reaching a firm consensus, the system does not work.
Regarding recent press report coming from MtGox, it is amazing to us that MtGox would refund money from unconfirmed transactions, or rely solely on transaction numbers like they seem to be saying. To claim that is the fault of the bitcoin protocol is clearly meant to be disingenuous.
To learn more about the inner workings of Coinkite please visit our Security FAQ at coinkite.com/faq/money. We are industry veterans with over 25 years experience in custom software and hardware.
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Edited: Feb 12 (13:45 EST): clarification about our transactions.
You asked, so we went all out, and added more exchange rate sources and more currencies.
Owners of our payment terminal can choose any of these exchanges when they price bitcoins (litecoins) for purchase at the terminal.
The exchange rates shown to all users are an average of these exchanges (where they have enough volume to support creditability). Which reference exchanges were used in the data is shown in a popup if you click on the rate shown for a specific fiat/crypto pair.
Check out all the available reference exchange options:
Fiat currencies we support:
USD, EUR, CAD, GBP, PLN, RUB, AUD, JPY, CNY, BRL, SEK.
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