Blockchain Asset Manager Ambisafe Talks About Institutional Guarantees, Parity Debacle

Ethereum platform Ambisafe has quickly emerged as one of the blockchain’s most promising asset managers. Hacked recently spoke with representatives from the company on their product, institutional bottlenecks and other contemporary issues facing the cryptocurrency market.

Ambisafe Asset Platform

In the world of blockchain, Ambisafe is well established. The company has been involved in the cryptocurrency space as far back as 2010, and is today one of the blockchain’s leading asset issuance and management firms. The company provides many go-to-market offerings, including ICO services, asset issuance and custom Ethereum development solutions.

Ambisafe operates several other companies, including Orderbook, an Ethereum token exchange. Orderbook has 25,000 active users and is averaging about two ICO launches per week, according to a company spokesperson. Combined, ICOs launched via Orderbook have generated more than $35 million in funding.

Orderbook claims to provide full transparency and immutability by recording all transactions on the blockchain. In this sense, it is entirely trustless and stores all assets “on-chain.”

The companies (both Orderbook and Ambisafe) areled by Andrey Zamovskyi, who has been coding since the age of nine. He has his fingerprints all over first of their kind blockchain projects, such as wallets, merchant services, exchanges and trading platforms.

A Lack of Institutional Guarantee

Ambisafe told Hacked that one of the biggest challenges facing the crypto-sphere isn’t payment processing, but a lack of institutional guarantees. This could make it difficult to attract new investors as the market eventually stabilizes and cools from its recent streak of record-setting gains.

In explaining this issue, Ambisafe drew our attention to account guarantees in the United States. In the U.S., all savings accounts held at banks are backed by a guarantee of $250,000 from the federal government. This is essentially a guarantee that your funds will be protected for that amount if the bank fails.

Moreover, if your credit card is stolen, U.S. law limits personal liability drastically so that you are not left on the hook for a massive bill payment.

These same guarantees are not present in the cryptocurrency space. Quite the contrary, as a matter of fact.

For example, if my Trezor is stolen or Coinbase is hacked, I simply lose everything. Large-scale trusted and insured institutions need to back vaults with extensively audited multi-sig wallets before we’ll see widespread displacement of credit/checking accounts.

Parity Wallet

Ambisafe also chimed in on the recent controversy surrounding Parity Technologies, whose account holders were locked out of $190 million worth of ether tokens. When asked about how the accounts could be unlocked, Ambisafe referred to the fact that there are some Ethereum Improvement Protocols (EIPs) on how to recover the funds. However, the discussions appear to be ongoing with no immediate solution in sight.

“In our solutions, we make sure to have a test coverage,” Ambisafe said. “Also, we don’t publish our code out in the wild just for the hell of it. We share the code by request though.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi