The cryptocurrency industry is evolving and is still in its nascent stage. While there is a certain amount of consensus about the possibilities it offers for the financial sector, there is still a great amount of skepticism regarding the security aspect. Addressing this need of security, Coinbase successfully completed an on-blockchain migration of approximately $5 Billion of cryptocurrency from Generation Three to Generation Four of its cold storage infrastructure. The San Francisco-based exchange made this news public in its Medium blog on Wednesday.
As per the blog, “The migration included 5 percent of all Bitcoin, 8 percent of all Ethereum, and 25 percent of all the Litecoin in circulation, respectively.”
The blog adds:
“Coinbase’s standard for truly cold storage is that multiple geographically separated humans in the real world should be forced to perform physical actions to enable a transaction after reviewing transaction details. If that isn’t true, we don’t think it’s actually cold storage.”
For the transfer of digital assets, the exchange has used the next generation of cold storage, which protects against Key misuse and supports world-class key governance and audit while being currency agnostic.
The blog further notes that the idea to migrate $5 billion was approached with a high degree of caution.
“While we believe in the security of the blockchain, the number of moving parts combined with our absolute responsibility to ensure the security of funds in our custody meant that we needed to cover every possible scenario,” reads the blog.
Once everything was in place, Coinbase went ahead with the migration process one by one, waiting until the previous address had been swept to the new cold storage before moving the next address. This approach made the migration take a bit longer and it was completed in 4 days.
Speaking to CoinDesk about the migration, Phillip Martin, Head of Security at Coinbase said, “Regulators and auditors were involved at every stage… One of the biggest things we were worried about is that we don’t move the market with this event, which is why we went to such lengths to coordinate with regulators and manage media speculation around the movements.”
Earlier this week, Coinbase came out with a new feature “Convert” which allows customers to convert one cryptocurrency into another. The exchange is planning to roll out the ability to convert cryptocurrencies to customers in all 34 countries in which Coinbase offers native payment access.
See Also: Coinbase adds Ethereum tokens: Dai (DAI), Golem (GNT), Maker (MKR), and Zilliqa (ZIL)
Coinbase releases “Convert” for conversion of one cryptocurrency into another
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