Coinbase Moves Record $5 Billion Transaction

 

 

 

 

 

Cryptocurrency exchange and online wallet Coinbase have announced what the company claims is the largest cryptocurrency transfer to date in a Dec. 19 blog post.

The post claims that the approximately $5 Billion transaction constituted 5 percent of all Bitcoin, 8 percent of Ethereum and 25% of all Litecoin in circulation, along with “many other assets” that were moved as part of an internal migration to upgraded security infrastructure.

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. To our knowledge, this is the largest movement of cryptocurrency (certainly in USD terms, potentially in absolute terms) ever undertaken.

The new infrastructure will allow Coinbase to store any cryptocurrency using a highly controlled and audited key generation process and continue using a globally distributed key storage and transaction approval system.

According to the post, planning for the transaction began months before the actual move date, and involved almost every team at Coinbase. The process included risk assessment and monitoring plans, along with running test migrations until the company was satisfied the live migration would be completed without incident.

Author: Timothy Goggin

Timothy Goggin is an economic analyst with an interest in the application of moral philosophy and decentralized systems. He studied economics at the Business School at Victoria University of Wellington, New Zealand. His area of research is the consequential and moral dimensions of implementing digital currencies and the resulting synergies for consumers in the trading environment.

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