ShapeShift acquires crypto tool Bitfract

Q16. It is a blockchain-based cryptocurrency that works in a similar way to Ethereum and bitcoin. It is a peer-to-peer internet currency that allows for instant, near-zero cost payments to anyone in the world. It’s a decentralised payment network that isn’t managed by any central authorities. What is it known as?

Global digital assets trading company ShapeShift has acquired Texas-based startup Bitfract, in a bid to offer its users the tools to swap bitcoins into "dozens of digital assets in a single transaction".

Bitfract has developed a tool that makes it easier for cryptocurrency users to trade a bitcoin for multiple altcoins, thus giving them "exposure to diversified digital asset portfolios". Using an API, the tool lets a user switch the portfolio without entering into various transactions.

As reported in Coindesk, talking about the acquisition, Erik Voorhees, CEO of ShapeShift, said: "This demonstrated a great alignment of strategy and thinking, and their execution was so exceptional that we wanted to bring their talented team and technology on board."

With the help of this tool, investors have the option of deciding the number of percentage holdings to make in a particular asset. The tool also allowed the option of adding destination wallet addresses and sending bitcoins in a single mass transaction.

ShapeShift has put forth their intention of continuous operation using Bitfract’s tool in its current form "as a demonstration of the power of ShapeShift’s open API". This facilitated the integration of the mechanism with its own platform thereby creating native multiple output transactions.

The co-founder and CEO of Bitfract, Willy Ogorzaly, said: "We believe in a decentralized future where individuals freely control their digital wealth, and our team is honoured to work alongside Erik and everyone at ShapeShift to make this a reality."

This move was introduced after ShapeShift announced the acquisition of a startup bitcoin hardware wallet – KeepKey – a few months ago. In March 20717, raised $10.4 million during Series A funding round.