In an interview to the Bloomberg Brief, the co-founder and CEO of BitGo, Mike Belshe said that the company’s core principle is to never hold enough private keys to sign a transaction. That way, “if we disappear, you still have your money.”
The CEO adds that the multi-sig Bitcoin wallet service provider adheres to a twofold litmus test for transactions, wherein the company cannot transact without the customer (since they do not hold enough private keys) but the customer can easily transact without the company.
Mike Belshe, who recently replaced Will O’Brien as the acting CEO of the Bitcoin security platform, spoke at lengths about the security concerns in Bitcoin, BitGo’s approach to security and Wall Street’s view on multi-sig verification.
On being asked whether security is truly the Bitcoin Achilles’ heel, Belshe says that failures on the security side came because the early core developers simply didn’t worry about it. Even after Bitcoin was worth something, the security was lacking because no one had thought it would matter. All the hacks and losses have been caused due to human negligence, and not the technology itself.
BitGo’s CEO explained that in an effort to scale up the security, the security-as-a-service platform started with a goal to ensure that “no single entity has access to enough keys to sign a transaction. It gets complicated, with multiple levels of wallets with multiple keys, but each level makes it exponentially harder for the bad guys.”
Commenting on the Wall Street’s new found love for the Bitcoin technology, he says that the company has several Wall Street clients with segregated accounts on the blockchain. Instead of rushing to a Bitcoin exchange, they create a multi-signature wallet, give one private key to the exchange, one to BitGo and keep one for themselves.