Steps Taken By Coinprit In Direction Of Bitcoin Future Exchanges
The Coinpit is taking some important steps to provide a safer alternative to the custodial future exchanges of Bitcoin. The users who will store the bitcoins on the Coinpit can have complete control of their funds due to the multi-signature technology of Bitcoin. The customer will still be able to retrieve their money if the exchange is hacked or disappeared completely.
The Founder and CEO of the Coinpit Bharath Rao talk with the Bitcoin Magazine and explained that why he believes that the trustless exchanges are a vital step for the industry of BTC.
According to Rao, they want to bring the same properties from the currency layer into the different financial systems. He further said that many financial crises of the financial system will be eliminated by the properties of Bitcoin and we use the USD/BTC exchanges to set the bitcoin prices. That means that the sufficient volume and arbitrage can guarantee the bitcoin prices on Coinpit.
There are lots of future exchanges launched till now and BitMEX is one of the most popular platforms for great trading strategies. The BTC community is reminded of the Bitfinex’s latest hack, which are the exchanges that store the customer funds with a single point of failure risks.
The Coinpit has been made to eliminate this problem.
Who has control?
A trustless setup will be established by the Coinpit with its customers by utilizing the multusig capabilities of Bitcoin. The users don’t need to send their BTC to an address solely controlled by the Coinpit while funding their account. A new multisig address will be created by the user and the exchange which need two keys to unlock: one generated by Coinpit and other by the users. Through this setup, the bitcoins will be deposited to the address only if both the Coinpit and user sign a transaction from the address.