Bitfinex has become the first major bitcoin exchange to offer on-blockchain transactions.
Typically, exchanges work off-chain, meaning that user balances are settled within a central database. Bitfinex’s bid for greater transparency will allow users to check their segregated bitcoin wallets on the blockchain.
Trade settlements will be broadcast once per day, according to the company.
Zane Tackett, director of community and product development at Bitfinex, said:
“This represents the next logical step in ensuring the safety of the bitcoin entrusted to us by our users.”
The exchange – which integrated BitGo’s multisig technology – recently urged customers to halt deposits following a suspected hack, which is currently being investigated.
When asked if the launch was related to the breach of security, Tackett denied the link, adding that the partnership with BitGo had been in the works for months.
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