Bitcoins were the first form of cryptocurrency to enter the market, and still remain the most popularly used today. However, it is still a challenge for many companies to accept bitcoins as a form of payment, which makes it difficult for them to fully integrate into the economy.
BitGo is a company that seeks to bridge that gap and make it easy for companies to adopt bitcoins and other cryptocurrencies into their financial ecosystem.
What Is BitGo?
BitGo is a company whose mission it is to help businesses that operate within a regulated economy use bitcoin. Cryptocurrencies utilize blockchains, which creates a few compliance and security issues for many businesses. BitGo has created technology that can solve these problems for businesses, allowing them to use bitcoins.
They process over one billion dollars worth of bitcoins every month, and many of their customers are among the biggest exchanges for cryptocurrency available.
Why Do We BitGo?
Without BitGo, there is a variety of challenges companies face when using bitcoins. The 3 primary concerns most companies face are the need to comply with regulations for their respective physical locations, a lack of security of many cryptocurrency wallets, and a processing delay during cryptocurrency transactions.
BitGo has a solution for each of these problems, which we will discuss in more detail below.
Benefits Of Using BitGo
Many companies find it challenging, or even impossible, to accept bitcoins as a means of payment because the bitcoin blockchain does not comply with government or industry standards that they must comply with. BitGo can solve this problem by creating a customized private blockchain for the company’s use.
This new blockchain will be written in just a way that it meets the company’s needs and complies with all of the standards they need to be careful of. Depending on what is actually needed and how it is completed, this may even create a whole new form of cryptocurrency for the company’s use, essentially creating their very own brand of alt-coin.
The World’s Most Secure Wallet
Many companies find it challenging to use cryptocurrencies because they are required to have a digital wallet, many of which are not robust enough to be used by a multi-level organization. They need a wallet that can sustain security by requiring multiple signatures, allowing different levels of access and usage rights, and requiring strict authentication.
The BitGo Web Wallet does all of this and more, allowing businesses to rest assured that their revenue is both safe and private.
BitGo Instant Transactions
This is perhaps one of the biggest problems that businesses face when deciding whether or not to accept bitcoins.
The fact that bitcoin transactions must be confirmed by solving complex algorithms and adding the transaction onto a blockchain is exactly what makes cryptocurrencies unique, but the mining pools which complete these confirmations often take some time to completely solve the block.
This delays transaction confirmations by minutes or even hours, which obviously will not due if you are trying to run a business smoothly. During the time between when a transaction occurs and when it is confirmed, it is known as a zero-confirm transaction.
It is risky to accept a zero-confirm transaction as completed, because it is possible that the transaction will actually not be confirmed as legitimate. This is a bit like accepting a check without being able to confirm that there is money in the account, but in this case there is no way to follow up and recover the lost income if it happens to “bounce”.
BitGo Instant is a service that allows companies to accept zero-confirm transactions with confidence that it is safe for them to do so. BitGo does this by running their own security checks and requiring multiple security keys for a transaction to be completed.
They then essentially vouch for the transaction until the time that it can be confirmed. In this way, companies no longer have to worry about any lag time between accepting payment and receiving it.
Downsides Of Using BitGo
As with any other payment processing there are transaction fees associated with using BitGo. You have to pay your merchant accounts to process credit card transactions, and it is no different when using BitGo to process cryptocurrency transactions.
You may also need to invest a decent amount into developing your own blockchain if the standard bitcoin blockchain does not comply with your government or industry regulations in any way. This is not an expense that many smaller companies can easily absorb.
If you are not already a cryptocurrency enthusiast, you will also have to deal with a fairly significant learning curve in regard to what bitcoins and other cryptocurrencies even are, as well as how they work and what is required to buy, sell, and trade them.
You may end up discovering that you need to invest quite a bit of time to fully understand what mining pools do, how to read a blockchain explorer, and many other smaller details that you may not have known even existed when you first consider using bitcoin for your business.
BitGo Final Words
If you have ever considered using bitcoin or any other form of cryptocurrency in your business, BitGo is definitely worth checking into. Do your research and investigate the services listed on their website, and you may find that accepting payment via cryptocurrency is more manageable than you originally thought.
In addition to accepting payments, there are many other ways in which cryptocurrency can be utilized for a company’s success. You may decide the investing and trading in bitcoins and other alt-coins is a viable means of growth for your business.
Better yet, you may decide to create you very own branded form a cryptocurrency that users can purchase and trade, simultaneously investing in your business as well.
Whether you wish to invest in or trade cryptocurrency, create your own, or simply accept it as a form of payment, BitGo has a solution that can help you turn your idea into a reality.