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Transaction Malleability and Coinkite

Transaction Malleability and Coinkite

imageWe would like to reassure all of our customers that transaction malleability does not in any way impact our wallet implementation at Coinkite.

All funds at Coinkite are fully segregated between customers and we don’t use the Bitcoin transaction numbers (transaction hash) to link deposits into customers’ accounts. Instead, our world-class custom wallet decodes the public keys inside each transaction, just as a properly engineered bitcoin wallet should.

Coinkite is built to work natively with crypto-currencies such as Bitcoin and Litecoin. It is not an accounting system built on top of a standard bitcoind (the reference P2P bitcoin client). We do not generate malleable transactions, and if someone should send funds contaminated that way into Coinkite, we rely on miners to confirm the funds into the block chain. 

We do allow our customers to accept  zero-confirmation transactions, but we don’t recommend it. At Coinkite, we appreciate and want to recognize the critical function that miners bring to the ecosystem. Without them vetting transactions and reaching a firm consensus, the system does not work. 

Regarding recent press report coming from MtGox, it is amazing to us that MtGox would refund money from unconfirmed transactions, or rely solely on transaction numbers like they seem to be saying. To claim that is the fault of the bitcoin protocol is clearly meant to be disingenuous.

In summary:

  • Coinkite is not susceptible to transaction malleability.
  • Support your local miners. We do with fees on every transaction.
  • If you don’t have a block confirmation, you don’t have the funds!

To learn more about the inner workings of Coinkite please visit our Security FAQat coinkite.com/faq/money.  We are industry veterans with over 25 years experience in custom software and hardware.

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This entry was posted on February 11, 2014 by and tagged , .

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bitcoinvancouver2013@gmail.com

bitcoinvancouver2013@gmail.com

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