Authentication & Security

Coinbase Vault Goes Live to Provide Security for Storing Large Bitcoin Amounts

Recently a new Bitcoin vault and wallet, Xapo Bitcoin Wallet, was launched by Wences Casares, CEO and co-founder of Lemon Wallet (which was later sold to LifeLock for $42.6 Mn). On July 25, 2014, Coinbase, a provider of trusted and secure third-party payment processing, launched its own vault designed to provide greater security.

How does it work? Withdrawals are time delayed, with notifications delivered to users’ phones and e-mail addresses.

For increased security, users can also choose a group vault with multiple withdrawal approvers.

Pricing:

The Coinbase Vault is 100% free and has no fees.

Some features:

Time-delayed withdrawals: Withdrawals from a user’s vault have a 48-hour window during which they can be canceled.

Multiple approvers: Joint accounts can be used for extra security, requiring multiple approvers to initiate a withdrawal.

Offline storage: Up to 97% of bitcoin is stored totally offline, in geographically distributed safe deposit boxes and physical vaults.

Coinbase also says the vault can have multiple co-signers for withdrawals:

  • Withdrawals are made with two-factor verification.
  • Co-signers will get an e-mail to approve the withdrawal.
  • The transfer will be complete after the waiting period.

Recently, LTP wrote about satellite-TV provider Dish Network’s decision to begin accepting bitcoins. It was big news. On July 18, 2014, another huge announcement was made in favor of the digital currency: Dell began accepting bitcoins on its website. Dell partnered with Coinbase to enable bitcoin transactions.

About Coinbase

Founded in June of 2012, Coinbase is a San Francisco-based provider of a wallet and platform in which merchants and consumers can transact with the new digital currency bitcoin.

Some key metrics, as stated on Coinbase’s website:

  • 1.5 Mn consumer wallets.
  • 35,000 merchants.
  • 6,000 API applications.
  • U.S. bank integration.

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

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