Digix and Coinify bring Bitcoin and Ethereum together

Singapore-based Digix has officially partnered with the Bitcoin payment processor Coinify to facilitate Bitcoin payments through its marketplace.

With this development, the company envisions that the Bitcoin users will now be able to conveniently obtain Ethereum based digital assets.

Digix and Coinify are aiming for something unique with this step; they are trying to bring together the functionality of the  ‘Bitcoin’, with physical assets like gold.

A report by the Ibtimes.co.uk  also states that later, diamonds too would get added.

The company has said that any consumer wanting to exchange his digitized gold assets has the choice to use either the peer-2-peer on EtherEx, or the crypto-exchanges such as Poloniex, Kraken, and Cryptsy.

Initially, Digix was on the Bitcoin blockchain and was using the concept of “colored coin.”

However, the company soon found this to be “inelegant” as the “burning” of the Bitcoin did not appeal to them, and then a separate block explorer was also required to look at the transaction history.

Kai Cheng Chng, CEO and co-founder of Digix, threw more light over the development and said that when the chain gets longer, the verification process slows down as one has to scan the entire length of the blockchain till the original transaction.

While this was the case with the blockchain, a transaction confirmation on Ethereum takes anywhere between 14 to 17 seconds, which is quite less than the 10 minutes used by the Bitcoin network.

What added to the predicament of the company was, that all this was quite ‘exponential’ in nature, which could not be handled without a centralized ‘oracle’ that could store the history of transactions.

Kai further added that since the solutions that use the Bitcoin technology are off the chain, so one does not even enjoys the same level of security, which further leads to a centralization problem.

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