Gemini Speeds Up Deposits to Bypass Bitcoin Network Congestion
Digital currency exchange Gemini is doing away with transaction confirmations for approved customers.
Announced yesterday, the move will see the New York-based exchange, founded by investors Cameron and Tyler Winklevoss, begin crediting users for their bitcoin deposits before those transactions have been confirmed on the network.
Typically, most services will wait for at least three to six confirmations before accepting a deposit as genuine. Bitcoin transactions, after being included in an initial block, become “confirmed” as new blocks are added to the transaction history.
Now, Gemini – citing transaction delays on the bitcoin network due to congestion – is starting to credit users before the first confirmation, assuming they pass a new clearance system.
The exchange explained:
“Here’s how it works: we’re running every bitcoin deposit on Gemini through a proprietary analysis to determine how likely it is to get confirmed, even if the network is clogged with other transactions. If your transaction passes our criteria (which may take a few minutes), we’ll pre-credit the amount of your deposit and make it available for trading immediately.”
The move comes months after Gemini began expanding its services to Asian markets. The exchange opened its doors in late 2015 following approval by New York state regulators.
The bid to offer zero-confirmation deposits is the latest move from the firm as it seeks to attract more traders – something it has struggled with since launch.
According to bitcoin data service provider Bitcoinity, Gemini has seen roughly 1,900 BTC in trade volume over the past 24 hours.
Car passing image via Shutterstock
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