Bitstamp Integrates Ledger Support in Answer to Bitfinex Hack
Bitstamp adds support for the Ledger Hardware wallet to enhance its trading platform's security measures.
Bitstamp, one of the world’s largest cryptocurrency exchanges, adds support for the Ledger Hardware wallet to enhance its trading platform's security measures.
Ledger, a Bitcoin hardware manufacturer and Blockchain service provider, enables secure Blockchain applications for enterprise-level clients, as well as the distribution of its Bitcoin hardware wallets which remains as the company’s core operation.
Ledger’s hardware wallet system can be integrated by trading platforms, wallet service providers and other Bitcoin applications to secure user funds under the company’s core technology called the Blockchain Open Ledger Operating System (BOLOS). This enables the execution of open-source code to maximize performance and flexibility.
Once the Ledger Wallet system is integrated onto a trading interface, users and traders can transfer their Bitcoins directly to and from Ledger’s hardware wallet, eliminating the possibility of theft and security breaches.
The Bitstamp team’s integration of the Ledger Wallet enables users to transfer their Bitcoins upon trading, which instantaneously protects user Bitcoins in hardware wallets which are securely protected by the Ledger Wallet’s security protocols.
Lesson From the Bitfinex hack
Just last month, Bitfinex experienced a US$70 million hack, which led to a haircut loss of all users on the Bitfinex platform. Although the Bitfinex platform had a faulty multi-signature implementation, it served as a wake-up call that any trading platforms and cryptocurrency exchanges could fall victim to major hacking attacks.
The integration of hardware wallets by Bitstamp is an efficient method of allowing customers to gain control over their own funds and Bitcoins. That means instead of the exchange handling user funds like most, if not all, mainstream exchanges, users have full control over their funds which ultimately prevents them from being affected by theft or security breaches.
The hardware wallet implementation will benefit both users and the Bitstamp exchange operators, in the sense that even if a hacking attack occurs, user funds will be protected by the Ledger Hardware wallets and funds will not be compromised.
Over the next few months, the Bitstamp team plans to integrate more hardware wallets like the Trezor hardware wallet to offer users more selection in deciding which wallet operators to partner with to protect their funds.