Gem Brings Bitcoin Multi-Signature Security to expresscoin Platform

Journalist:
Lester Coleman
January 16, 2015

Gem, the Venice, Calif.-based Bitcoin startup offering a multi-signature-based security platform to Bitcoin developers, has partnered with expresscoin, the Santa Monica, Calif.-based digital currency retailer. The partnership will offer Gem’s scale-able and secure API wallet to expresscoin users, initially powering internal accounts and operations and eventually powering co-branded, end-user wallets with Gem’s multi-signature security solution, thus providing an alternative to expresscoin’s current bring-your-own-wallet environment.

“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.”

expresscoin is a Santa Monica-based Bitcoin, Litecoin, Dogecoin, Blackcoin, and Darkcoin retailer that makes the digital currency buying experience fast, safe and easy. Previously, expresscoin required users to bring their own wallet to the site, allowing them to test various wallet offerings on the market. However, as multi-signature, hierarchical-deterministic (HD) wallets are increasingly recognized and adopted as an industry best practice, expresscoin has partnered with Gem to be able to offer a multi-sig, HD wallet as their default.

Gem’s partnership with expresscoin consists of two phases. Phase one will equip all current expresscoin internal operational wallets with Gem’s multi-signature security platform. Phase two includes the release of a new, co-branded wallet that will be the default wallet for new expresscoin customers. This wallet will also be made available to existing expresscoin customers who would like to switch to the new multi-sig HD wallet from their existing wallet.

Also read: Multi-sig for a 12-year-old

More Security Features for Gem’s New Partner expresscoin

The new collaborative wallet is intended to provide more security and control as it features Gem’s multi-signature key system through which Gem issues three keys: two that the customer holds (one online and one stored securely offline), and a third key held by Gem as a cosigner. The three-key system ensures that the customer always has control over their funds, with possession of enough keys to move funds without Gem. Since Gem only holds one key, it can never transfer funds without the customer’s approval. On the other hand, if a customer’s online key becomes compromised, the attacker would be unsuccessful moving funds without Gem’s cosigning key or the customer’s offline key.

“Keeping our customers’ funds safe while allowing them full control and manageability of their coins is our number one priority,” said expresscoin CEO Will Wheeler. “Gem’s cutting-edge platform offers our customers the security and flexibility they desire and allows us to focus on providing a superior service.”

“There are thousands of Bitcoin apps with many more currently in development, but none of them will resonate with users unless they are secure and easy to use,” said Gem COO Ken Miller. “2014 was a monumental year for legitimizing Bitcoin as a currency.  2015 should be the year it becomes mainstream; however, crucial to its wide adoption and advancement is trust in its security, and we’re excited to provide that security to expresscoin and all other apps and services.”

For more information about Gem, visit: https://gem.co

Images from Shutterstock.

Tags: Gemmulti-sig
Lester Coleman

Lester Coleman is a media relations consultant for the payments and automated retailing industries.