Decentralized cryptocurrency conversion platform ShapeShift has bought Texas-based startup Bitfract in a deal apparently designed to bring in-house a functionality the Swiss-based venture was itself looking to introduce.
Bitfract is a tool allowing diversification without the need to go through multiple exchanges. The platform lets users assign a certain allocation for various altcoins and specify addresses for each. Afterwards, a single Bitcoin transfer to the system will yield the appropriate amounts of Ether, XRP, or other supported coins in the desired wallets.
The benefits of such a system are several, the most notable ones being the hassle-free approach and decentralization. In order to achieve the same effect, one would have to create an account at a cryptocurrency exchange (or several, depending on the altcoins) and then calculate distributions manually. Several blockchain transfers and trades would then have to be followed by a few more transactions, presuming people want to keep the altcoins in their own wallets.
Cooperation between the two teams seemed logical as Bitfract is built upon ShapeShift’s public API. The current iteration of the platform will be left untouched, and the underlying technology will be integrated with the main service in the future.
Willy Ogorzaly, co-founder and CEO of Bitfract, commented on the deal as follows:
“When Erik [Erik Voorhees, founder and CEO of ShapeShift] asked if we wanted to join ShapeShift, the answer was immediately yes. We believe in a decentralized future where individuals freely control their digital wealth, and our team is honored to work alongside Erik and everyone at ShapeShift to make this a reality.”
The deal continues ShapeShift’s expansion drive, following the purchase of several other companies, most notably hardware wallet manufacturer KeepKey. The platform is also known to users of the Jaxx wallet, where it is integrated.