Today at the Money20/20 conference in Las Vegas, Bitcoin exchange platform AlphaPoint announced that Bitcoin exchange Bitfinex would begin using AlphaPoint’s services to improve its backend technology. This news is huge for both AlphaPoint and Bitfinex, as well as all of Bitfinex’s customers. The partnership will help Bitfinex manage their increasing volume and popularity as a Bitcoin exchange.
Bitfinex currently handles the third-highest volume out of all Bitcoin exchanges, so they should be considered a top exchange. This partnership is certainly a big move for Bitfinex; trusting a third party with the security of your customers’ assets is not a light decision. Josh Rossi, Vice President of business development at Bitfinex, addressed these concerns:
To embrace a technology from a third party, rather than build it ourselves is a tough decision, as we do not outsource core functionality lightly. However, once we had the opportunity to look under the hood of the AlphaPoint platform, we found them to have the best enterprise backend solution to address our needs for the present and the future, allowing us to really focus on what we do best: create innovative new products and features, while focusing on delivering value to our customers.
This certainly has been an exciting month for AlphaPoint; this partnership comes on the heels of the announcement by AlphaPoint that they received $1,350,000 in funding. If you are attending the Money20/20 conference, you can meet some of the AlphaPoint team members at their booth, #336, to discuss their platform and how they plan on changing cryptocurrency exchanges.
With this partnership, Bitfinex hopes to support their rapid growth. AlphaPoint claims that their platform has the ability to support up to 1,000,000 trades per second; if Bitfinex hopes to become the leader for Bitcoin exchanges, they’ll need to be able to support this kind of volume. Security is clearly a top priority for Bitfinex, and AlphaPoint boasts on its website that the hot wallet their exchanges use is behind four layers of security; AlphaPoint even claims to use the same security practices as military platforms.
I was fortunate enough to interview the CEO of AlphaPoint, Vadim Telyatnikov.
A major issue with exchange platforms today is security. Many exchanges have reported breaches of their wallets and the loss of customers’ coins. How does AlphaPoint address this problem to guarantee the safety of their customers’ assets?
Our team has significant experience building risk management systems for global banks and we follow many of the same procedures such as lean OS and full in-house hosting for core systems. We have analyzed the reported exchange hacks and continually develop infrastructure and risk management tools to prevent attacks from affecting our system. In addition, we consult with top security experts and follow best practices such as cold storage and multi-sig for the digital assets.
AlphaPoint recently received over $1,000,000 in funding. How do you see this affecting AlphaPoint’s future?
The investment will support AlphaPoint’s international growth, accelerate development of its products and services, and enable the company to more swiftly ease the adoption of digital currencies around the world.
AlphaPoint’s partnership with Bitfinex is certainly a huge step forward for both companies; what excites you the most about this deal?
Bitfinex is a widely recognized leader in the space and we are extremely excited that they have entrusted us to power such a core portion of their business. We believe that this partnership highlights the evolution and maturity of the industry to enterprise grade systems in preparation for rapid future growth that will be driven by Wall Street entering the space.
Where do you see AlphaPoint in a year?
Our vision is that every person in the world has easy access to buy and sell digital currency. In a year we hope to be closer to that vision with significantly more access points to buy and sell digital currencies with localized exchanges all over the world.
This partnership is certainly a monumental moment for both AlphaPoint and Bitfinex. This is a huge step forward for AlphaPoint, which previously didn’t deal with any of the top exchanges. For Bitfinex, too, this is an important step. By reaching out and working together with AlphaPoint, Bitfinex is improving its platform and thus creating a better experience for its customers, which will further allow it to become a contender to be the leading Bitcoin exchange.
What do you think of the partnership between AlphaPoint and Bitfinex? Comment below!
Images from AlphaPoint, BitFinex, angel.co and Shutterstock.