In its statement Bitcoin exchange Mt. Gox said customers can take out cash as usual as everything is alright here now. The exchange also said that it is working to resolve technical issues that prompted it to halt withdrawals of the digital currency and generated a lot of inconvenience for a couple of days for customers.
Michael Keferl, a communications officer for Tokyo-based Mt. Gox, said in an interview that there is a problem in the way transactions are verified. He opined that it’s not about cash at all, only about Bitcoin. Due to the setback, Bitcoin prices fell on Feb. 7 to a great extent. Understanding the situation the company released a statement explaining the technical issues.
In his statement Keferl said that the company is sending cash to people in Japan and around the world as normal. They can exchange coins into cash. He admitted that the Bitcoin withdrawal issue will be fixed which according to him is not like a structural problem.
The Bitcoin Foundation Says Problem Not With Bitcoin
When Mt. Gox said that it is a problem with Bitcoin and not with its structure, the Bitcoin Foundation took the cognizance and retorted back that the issues that Mt. Gox has been experiencing are due to an unfortunate interaction between Mt. Gox’s implementation of their highly customized wallet software.
The Bitcoin Foundation’s Gavin Andresen wrote in the blog that the problem was with Mt. Gox’s customer support procedures, and their unpreparedness for transaction malleability, a technical detail that allows changes to the way transactions are identified. He wrote that transaction malleability has been known about since 2011.
He further noted that in simplest of terms, it is a small window where transaction ID’s can be “renamed” before being confirmed in the BlockChain.
Bitcoin Exchanges Need to be Responsive Says Gavin Andresen
According to Gavin Andresen this is something that cannot be corrected overnight and for that reason any company dealing with Bitcoin transactions and have coded their own wallet software should responsibly prepare for this possibility and include in their software a way to validate transaction ID’s. Otherwise, it can result in Bitcoin loss and headache for everyone involved.
He further wrote that the Bitcoin core development team has worked to limit transaction malleability and there is broad agreement in the community that this needs to be eliminated. According to him finding the best and most responsible solution will take time; however, till then users of the reference implementation do not need to be concerned.
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