Gem’s unique API comes with multi-sig and hierarchical-deterministic (HD) wallets, two new technologies that are widely considered to be vast improvements in Bitcoin security.
With normal Bitcoin addresses, there is one private key needed to move the bitcoins; with multi-sig, you need two private keys (and possibly more depending on the setup). HD wallets allow people to use multiple public keys with only one private key. On top of that, they offer two-factor authentication built into their API.
Gem takes their implementation of these technologies to a new level by putting the consumer in full control. With Gem’s multi-sig wallet, there are three private keys, and you need two out of those three to send the funds. Gem gives you two, meaning you can always move your keys, and if Gem is compromised, your coins will still be safe. Other multi-sig APIs on the market retain two of the private keys and only give you one key.
On January 15, Gem announced their first partnership with a major Bitcoin company. Expresscoin, an altcoin exchange, will be using Gem’s API to give all of their costumers HD and multi-sig wallets. Now users will be able to trade darkcoin, bitcoin, litecoin, blackcoin, and dogecoin with wallets they are in full control of.
“Expresscoin has gone out of their way to increase access to bitcoin as much as possible, which is in line with our philosophy of making Bitcoin security easy for developers. From the very beginning, we wanted Gem to empower digital currency companies to focus on building great user experiences, instead of focusing on infrastructure,” said Gem CEO and founder Micah Winkelspecht. “Partnering with expresscoin, one of the industry’s most prominent digital currency retailers, is the next big step in showcasing how seamlessly Gem’s API can integrate into other apps and services while maintaining the level of security consumers demand.”
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