A blockchain data mining company claims to have cracked Coinbase’s cold wallet system and concluded that they hold nearly 1 million bitcoins, accounting for 5% of the total supply.
They said: “Coinbase has built a cold wallet library with 8,000 to 10,000 BTC addresses.”
Assuming that there are already an unusual number of “perfect” 10,000 BTC addresses, and even more than £ 5,000, it’s surprising that their hot wallet system.
“Coinbase’s hot wallet is very interesting. Unlike other exchanges that use a fixed address or a few fixed addresses, Coinbase’s hot wallet is a one-time use.” Said Li Yi, head of technology at Chain.info.
Most exchanges keep all tokens in a cold wallet address and then take extreme measures to protect the private key of that address.
Coinbase may cut Shamir into a private key, then cut the cold wallet itself into many addresses, and then send it to some Swiss bunkers.
However, discovering popular wallets is a discovery because it shows that they must use very complex systems to keep Bitcoin in and out of Coinbase, while maintaining a level inaccessible to outsiders.
“At present, most on-chain data service providers are unable to provide Coinbase data, which also shows that the design of Coinbase has achieved the effect of improving the security and privacy of the wallet. Chain.info is currently the only market that provides Coinbase with relatively complete wallet data Platform.
They said they did it with some manual mining and then “trained a machine learning model and used that model to automatically identify and cluster the top 10,000 addresses in a rich Bitcoin list.”
Top 10,000. So, postpone issuing them, instead of getting clear numbers, rather than having dirty numbers, instead of using ₿10,000 blocks, you reduce the price to 3371337 or lower, obviously there is a cost to consider here because at some point you Can reach the level of bird fountain emoji package.
Bitcoin exchange with the highest holdings in January 2020
As a broker and exchange, and can claim that it has never been hacked, except that it may be the oldest exchange listed above (focusing on the U.S. market), Coinbase is the largest custodian of Bitcoin, and perhaps not surprising .
However, their lead is so great that it is a revelation. For example, the second place accounted for approximately 33% of Coinbase’s holdings.
The second position is Huobi, which is also very interesting, but not surprising, because their trading engine and high-frequency market maker have no obvious hacking methods other than futures, which makes the Chinese exchange a trading Very easy to choose.
There is no Bitmex here, but Binance is third in other respects, although Bitfinex still seems to be competitive.
The top five exchanges together account for about 10% of the total supply, about 2 million bitcoins, and the top ten exchanges have 2.5 million pounds.
This is in line with other statistics, which show that only 10% of the supply determines the price, but since this is a limited number of exchanges that do not include things like Bithumb, we estimate about 30% of the total supply From the exchange, maybe about 50% is kept by a third party.
Information source: Compiled from TRUSTNODES by 0x information. Copyright belongs to the author and may not be reproduced without permission
0X Simplified Chinese: Coinbase holds $ 8 billion in Bitcoin