People who regularly use exchanges and wallets to process bitcoin transactions are often a little surprised that bitcoin withdrawals on Gravity aren’t released immediately, but here’s why … 

When Bitstocks was founded, one of the critical business decisions taken was how to ensure the safety and security of clients’ assets. Bear in mind this was shortly after the infamous Mount Gox hack, resulting in a monumental loss of around $460 million dollars, and eventually the bankruptcy of the business. 

They weren’t the first reputable exchange to suffer massive losses at the hands of cybercriminals, and they certainly wouldn’t be the last.

But we wanted to make sure Bitstocks wouldn’t find itself in the same situation - ever! 

Offline Storage to Mitigate Risk 

The decision was made, there and then, to design and build a proprietary custodial system that would take advantage of offline storage, also referred to as deep cold storage. With assets never held online, this approach mitigated the risk of a ‘honey pot’ of coins for would-be hackers to crack.

This system is highly sophisticated and uses several security protocols to maintain integrity. It was the way we were able to confidently offer maximum safety of funds. We built Gravity’s custody system in the same way, adding further enhancements to bolster protection and offer iron-clad security. 

The trade-off, however, was the speed at which transactions would be processed.

Manual Processing of Transactions 

Because assets are held offline, the process of signing and broadcasting the transactions to the networks takes place on secure terminals. With exceptionally limited access and strict processes, manual intervention and specialised resources are required. As such, we process these transactions in batches throughout the workday, and less frequently overnight and on weekends.

While we’re still growing the business in terms of resources, this means that a withdrawal request can take a few hours to be released, and at worst, deferred to the next working day. 

What about ‘Not Your Keys, Not Your Coins’?

We absolutely understand the concern here - especially for seasoned ‘bitcoiners’ and investors - that because you don’t hold the private keys to your Gravity wallet, the coins aren’t technically within your control. And theoretically speaking, yes, that’s true.

Practically, however, this is precisely why we’ve dedicated our research and resources to developing a new paradigm in finance - transparency and proof of solvency! 

These tools, due to be incorporated into Gravity, will allow our customers to retrieve verified confirmation (via the blockchain) of where their assets are at any given moment, as well as proof of our company’s solvency in real-time. 

We’re sure you’ll agree that this is groundbreaking ‘accounting’ in the financial sector, and it is our vision that this will usher in an industry-standard that customers will come to demand of all financial institutions in the future. 

This is why Gravity is so much more than ‘just another bitcoin exchange’. We’re not looking to be an exchange. We’re aiming to provide traditional financial products and services, underpinned by the power of Bitcoin, with unparalleled transparency of our operations and your money! 

The time is upon us to disrupt the status quo and never again settle for less than true sovereignty of our finances. 

And if that means that, for the time being at least, your bitcoin transactions take a bit longer to process than what you’ve come to expect from other providers, please know that there’s rhyme to our reason, and at the end of the day, it comes down to protecting your assets as if they were our own.

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