Coinbase – a popular cryptocurrency exchange – recently acquired the Israel-based cryptographic security company, Unbound Security. The exchange notes that this gives them an all-new presence in the region, which is “a well-established and rapidly growing technology hub.”
How Unbound Helps Coinbase
Coinbase announced its latest acquisition in a blog post earlier today. The company said Unbound is a first-mover on cryptographic security technology, including a new area called “secure multi-party computation,” or “MPC”. The technology involves advanced mathematics which fosters easier storage and transfer of digital assets. Apparently, Yehuda Lindell – Unbound’s co-founder – is a world leader on MPC.
“Coinbase not only gains access to some of the world’s most sophisticated cryptographic security experts… but also a presence in Israel, a well-established and rapidly growing technology hub,” said Coinbase.
The post outlines that as use-cases for cryptocurrency exponentially rise, as do the attack vectors to steal users’ private keys. As such, MPC is designed to deliver the security benefits of cold-storage wallets, with the frictionless nature of hot wallets.
A cold wallet is a crypto wallet that’s disconnected from the internet, and generally a safer pick for HOLDers. Meanwhile, hot wallets are wallets that keep private keys live and ready to trade at all times, leaving opportunities for hackers to secure them.
Coinbase’s Ventures Abroad
Following the acquisition, Coinbase has also confirmed plans to establish an Israel-based tech center, to continue technological research. The team says Unbound will “form the nucleus” of the new research facility, which will grow over time.
This isn’t the first time Coinbase has ventured beyond North America with its operations. Earlier this year, the exchange established its first tech hub in India. Just two weeks ago, the engineering team expanded further to both Singapore and Brazil.
Singapore and Brazil have garnered interest from the crypto community for their approaches to the digital asset space. Huobi – another crypto exchange – recently established its Asian headquarters in Singapore. Meanwhile, surveys show that Brazil’s population takes immense interest in Bitcoin, and one politician has even proposed using it to pay government workers.
