Xapo Focusing On Security - Essay Example

Bitcoin Company Xapo has partnered with Sattelogic to help improve the company’s security.

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Xapo, a bitcoin services provider, does not usually reveal much but it has recently announced a few new updates. All these updates are focused on boosting the company’s security offerings.

This move to improve entails the company to remove fees for the signature vault storage service, add multi-signature authorization to the offering and also completing a Service Organization Control 2 Type I Audit.

More than these, the firm’s partnership with Satellogic, a Silicon Valley start-up, show how serious the team is about securing the bitcoins it holds for consumers.

Xapo announced earlier today that it will work together with Satellogic to locate certain elements of the security architecture within a satellite. The new partner’s intention is to use this and use it to take HQ images in real time.

The announcement did not elaborate much on the measure because of security reasons, but Xapo suggested that the physical and jurisdictional security and the ability to well maintain data were mainly what encouraged them to sign this deal.

CEO of Xapo, Wences Casares, discussed about the measures and said that the goal is to at increase the firm’s security. He indicated that this is very important considering the continued security struggles in bitcoin industry.

He said, “A lot of the people who have large amounts of bitcoin, that’s what they care about most – security. Nothing is more important to security than keeping private keys offline.

We’ve seen the problems of that recently, you can keep them offline but when you bring them online, that’s when compromises happen.”

Emiliano Kargieman, CEO of Sattelogic, explained that the reason behind the partnership for his start-up is to showcase the power of Sattelogic’s technology to the new markets.

He elaborated, “Our partnership with Xapo allows us to showcase the integration of our satellite platform into mission-critical, daily processes in the financial industry, while we play a key role in helping the company develop the most secure storage service in the bitcoin space.”

It is not surprising that Xapo is emphasizing on the security feature as it was billed as “bitcoin’s Fort Knox” at launch. Bitcoin’s Fort Knox was a reference to a famous US bullion depository.

It can be considered as a return to Xapo’s original value proposition. Xapo introduced a few new features to existing services in 2014.

The additions were aimed toward the everyday bitcoin users. The features included hot wallet accounts, bitcoin debit cards for the international users and a tipping button.

After the announcement, Xapo is being seen as a supporter of offline storage while the other bitcoin companies in the security sector are trying to move away from offerings like this.

BitGo is one such company as it has embraced multisig wallets.

Casares suggested that Xapo foresees a bitcoin ecosystem where cold storage solutions will be in demand. He also thinks the vault service is a great way to attract new markets.

Both new and existing customers will be benefitted by the changes to the company’s Vault pricing.