Coinbase is one of the world’s largest and most popular cryptocurrency exchange and wallet provider. How fitting of them to conduct what they have deemed in their blog post as the largest transfer of cryptocurrency ever.
“Coinbase recently moved 5% of all BTC, 8% of all ETH and 25% of all LTC in circulation (among many other assets) in what we believe is the largest crypto migration on record.”
The point of the transfer event was to move Coinbase’s assets from their cold storage gen. 3 to gen. 4, a more secure cold storage facility.
“Last week we successfully completed an on-blockchain migration of approximately $5 Billion (as valued the week ending Dec. 7, 2018) of cryptocurrency from Generation Three to Generation Four of our cold storage infrastructure.”
Coinbase’s cold storage techniques have greatly evolved over the past six years. Their first cold storage facility was simple keys put into a safety deposit box back in 2012. Since then their assets have become much more valuable and need much higher levels of security.
“Coinbase’s standard for truly cold storage is that multiple geographically separated humans in the real world should be forced to perform physical actions to enable a transaction after reviewing transaction details. If that isn’t true, we don’t think it’s actually cold storage.”
Coinbase’s new generation four cold storage system reportedly supports a “highly controlled and audited key generation process and continue(s) with a globally distributed key storage and transaction approval system.”
The initial purpose for Coinbase’s development of their cold storage was for their custodial services.
Coinbase announced yesterday that they are launching their own incentivized educational program.