The team at Bitcoin company Gem has just announced that its multi-sig Bitcoin API is out of beta and available to potential Bitcoin developers around the world. The announcement was made at Transact 15 in San Francisco, where Gem has been presenting and spreading the word about the Gem API since yesterday. Gem also disclosed the recent closing of a $1.3 million funding round which brings Gem’s total funding to $3.3 million.
Gem Has Raised $3.3 Million In Funding
The $1.3 million fundraising round was led by KEC Ventures. Other investors in the round include First Round Capital, RRE Ventures, Birchmere Labs, ECEG Partners, Baroda Ventures, Amplify.LA, Tekton Ventures, Drummond Road Capital, and angel investor Robert Wolfson. The wide range of investors, both individual and institutional, show the broad support that Gem, and Bitcoin with a capital ‘B,’ has garnered. Jeffrey Citron, Managing Partner at KEC Ventures elaborated:
“The growth of Gem’s platform in recent months has been really impressive. It’s great to see the impact of taking something as complicated as working with Bitcoin, and making it accessible to developers who might otherwise be turned off. It was clear Gem is fulfilling their mission to get Bitcoin in the hands of people everywhere.”
Howard Morgan, a Partner at First Round Capital, touched on the salient point that seems to have driven Gem’s fast growth in the Bitcoin industry:
“The potential Bitcoin has to revolutionize payments is tremendous. We continue to be excited about the role Gem is playing to make that disruption happen quicker.”
Gem Wants To Provide a Bitcoin API For Developers Everywhere
Gem is enabling the world’s developers to better access and understand the power of Bitcoin as a security platform. At this point in Bitcoin history, naysayers are still valid to point out the irony in mentioning the Bitcoin block chain’s security features when roughly 10% of all bitcoins ever existed have been lost or stolen. Gem plans to use the additional $1.3 million in funding to accelerate the expansion of its much-needed features and put them into the hands of said developers. Gem’s multi-sig API is available to fledgling companies in Czech Republic, Kenya, France, or especially China, where the Bitcoin startup scene is taking off. Gem’s Bitcoin multi-sig API includes these features:
- Unlimited transactions
- 2-of-3 multi-signature security (BIP11/BIP16)
- Hardware Security Module (HSM) cosigning protection
- Hierarchical deterministic (HD) wallet (BIP32/BIP43/BIP44)
- Client SDKs in multiple languages (Ruby, Java, Python, Node.js)
- Webhook notifications
- Multi-factor authentication
- Fraud monitoring and rules enforcement
- Chat support
Gem API support focuses on providing complete 2-0f-3 multi-sig functionality to any developer that needs it. The keys are managed with a FIPS 140-2 Level 3 certified Hardware Security Module and allow the proper use of 2-0f-3 keys because, after all, multi-sig technology is useless if improperly implemented. Gem founder Micah Winkelspecht explained the importance of this milestone:
“The entire banking world has been using HSMs for years to secure financial transactions, including Visa, MasterCard, American Express, and even Apple Pay. But until now, the Bitcoin industry hasn’t been using them because they weren’t designed for Bitcoin. We fixed that problem.”
Why Do We Need An Easy-To-Use Bitcoin API?
Winkelspecht also explained why he believes that developers around the world will start using Gem’s Bitcoin API:
“Many developers are eager to incorporate bitcoin into their products and services, but aren’t sure where to start, or are lacking resources to figure it out. It feels really good to say we’ve solved that problem.”
Gem’s COO Ken Miller elaborated more:
“Bitcoin is new technology, and let’s be honest, a lot of the essentials required to use it are rough to figure out and can take a lot of manpower. There are enough adoption hurdles already without developers actually being incented not to integrate Bitcoin. So we decided to do something about that.”
Thanks to Gem’s Bitcoin API, we can start to expect multi-sig bitcoin transactions become an industry standard, especially for businesses. Gem already helps key businesses in the space secure their bitcoins and the bitcoins of their customers, and is now opening up that service to the world. And boy, does the world need it. Integrating Bitcoin, not just accepting it, in 2015 is so much easier than it was in 2010. Bitcoin companies like Gem are a testament to and a force behind that fact.
What do you think about Gem’s new funding round and Bitcoin API release? What do you think about multi-sig and its current penetration in the Bitcoin industry? Leave your comment below and join Bitcorati for this important discussion.
Images from Gem.