As the crypto economy develops, there are opportunities for entrepreneurs to provide services at all stages of the business process. Daniel Lipshitz, an Israeli startup founder, spotted a niche and has built a company around it. It’s just part of a bigger vision Daniel has for what a crypto economy could bring to the world.
GAP600 covers the short period between a transaction being completed and it being added immutably to the blockchain. During that time, there’s a small, theoretical risk of something going wrong and money being lost. GAP600 covers that risk, just like an insurer covers more conventional business or personal risks.
Before he started his business, Daniel was working for a website security company that provided DDoS mitigation (distributed denial-of-service), including to some crypto exchanges. He noticed how fast the exchanges were growing and that led him to find out about this new sector. He thought about “how I could add value to the ecosystem” and came up with the idea for GAP600, which served its first client in 2016.
“In the crypto space, service needs to be first class and better than anything else out there,” says Daniel. Part of that is about speed. “If you’re an exchange or a payment provider or a wallet, you need to be providing instant gratification, instant customer service.” GAP600 helps with that.
“Money is an extremely sensitive subject for everyone. Nobody wants to lose one dollar,” Daniel says. And that means crypto doesn’t need to look any further for its killer app: “the killer app is money. That is the massive use case. It’s just an absolute, ubiquitous aspect of our lives.”
But for Daniel, there’s more to crypto than simply making the world more efficient. He also believes there’s an idealistic side to the revolution. He references the economist Friedrich Hayek, a 1974 Nobel prize winner, whose ideas about “denationalised” money have been taken up by crypto enthusiasts to explain how crypto could contribute to economic freedom.
“When you look at the statistics, the more free an economy is, the less chance of poverty. It’s about progress, it’s about quality of life, it’s about stability and happiness – and can lead to global peace. These are lofty and ridiculous terms, but that’s what it is.”
To hear more from Daniel, listen to our CoinGeek Conversation with him – the second of our new podcast series:
Daniel Lipshitz will be talking on November 29 at the CoinGeek Week Conference in London.
Swedish financial technology company Cinnober has partnered with cryptocurrency payment solutions provider GAP600 to enable instant confirmation of cryptocurrency transactions on exchanges, according to a press release.
The instant cryptocurrency transactions functionality will be available as an add-on to Cinnober’s cryptocurrency offering for exchanges.
Eric Wall, Cinnober Cryptocurrency and Blockchain Lead, said, “GAP600’s instant confirmation service removes the lag time associated with cryptocurrency deposit transactions between users and exchanges. Such transactions can take 60 minutes or more until they are visible in the user’s trading account. Due to the volatility in the cryptocurrency markets, the value of the assets can change significantly during this time. This problem is removed with GAP600’s service.”
Instant confirmations are made possible by GAP600’s proprietary risk engine, which determines the risk involved with each transaction. Furthermore, cryptocurrency payments are guaranteed through an underwriter, even before a transaction is included in the blockchain.
GAP600 co-founder and CEO Daniel Lipshitz said, “GAP600 is easily integrated, which means the instant payment transaction functionality is ready to go live on the Cinnober platform, offered as a value-added feature to Cinnober customers. Offering this functionality will significantly improve the cryptocurrency exchange value proposition.”
Cinnober Group CEO Peter K. Lenardos noted how delays in confirming cryptocurrency transactions has been a significant concern for traders. “The current lag time for transactions over the blockchain is a major pain point for those trading cryptocurrencies. Being able to offer instant transaction functionality will help our clients improve their competitive advantage in the cryptocurrency exchange space,” he said.
For Bitcoin Cash (BCH) transactions, the new service will be offered on top of instantly verified transactions that allow users to spend amounts that have just been transferred to one’s wallet, almost instantaneously.
Last September, stock exchange company Nasdaq announced its plan to purchase Cinnober through a $190 million all-cash recommended public offer. The move is intended to allow Nasdaq to increase its presence in the cryptocurrency sphere. With Cinnober as strategic partner to cryptocurrency custodian BitGo, the acquisition will allow Nasdaq to venture into custody services using an already regulated entity.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
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