Cryptocurrency Payment Processor BitPay Finally Announces Support for SegWit

Bitpay, the crypto payment processing giant, has finally integrated the segregated witness (SegWit) protocol, a second layer scalable solution to make bitcoin processing cheaper. The Segwit integration is currently optional for bitcoin wallet users on BitPay. However, the firm plans to make it a default feature by the year-end.

SegWit was first proposed by Pieter Wuille, a bitcoin core developer in 2015. The SegWit protocol aimed to free up block space on Bitcoin blockchain without increasing the block size.

SegWit also eliminated a transaction signature vulnerability, which allowed miscreants to manipulate transaction signatures. On the other hand, BitPay is one of the largest crypto processors and currently processes around $1 billion worth of crypto transactions every year.

BitPay had earlier passed on an opportunity to integrate SegWit on its platform almost three years back and instead opted for another protocol called SegWit2x. SegWit2x implemented segWit itself, but at the same time, it also increased the block size from 1MB to 2 MB.

The Bitcoin community was divided over the use of the two protocols, creating conflict in the community over the size of the Bitcoin block, and many believe this also led to the creation of Bitcoin Cash Network.

However, SegWit2x failed to capture on the industry support, and as of today, 63% of all bitcoin transactions are processed using SegWit.

BitPay’s Decision Surprises Many

BitPay’s staunch support for an alternative second-layer protocol over SegWit has made many wonder what changed the minds of its decision-makers.

Sean Rolland, BitPay director of the product, claimed that now is the perfect time to introduce SegWit to its users as it decreases the cost of transactions by up to 30%, and the firm believes it would reduce the fee by 5%-10% with a new update.

Bitcoin was created to provide an alternate easy to use financial tool which offered lightning-fast transaction speeds at minimal transaction cost.

However, as bitcoin’s popularity grew, the network started to show signs of fatigue as it was unable to handle the transaction volume, making it slow, complicated, and costly to use. This was when developers came up with an off-chain second layer solution in the form of the Lightning Network and SegWit.

The lightning network showed a lot of promise. Still, even after years into development, the LN protocol seems to have more complexities than it was invented to resolve. Thus, SegWit became a popular choice.

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Author: Lillian Peter

BitMEX Adds Native SegWit Support to Bitcoin Withdrawals, Non-Native Support Coming to Wallets

  • BitMEX adds native segwit address support, Bech32 to reduce transactions fees
  • The exchange will add Segwit non-native support to its wallet that will help them save 65% of block weight

Popular crypto derivatives exchange BitMEX is now supporting native SegWit address format, Bech32 to withdraw Bitcoin, announced the exchange on Dec. 12. This upgrade is effective immediately.

Starting now, BitMEX customers can withdraw to all three address formats, Bitcoin’s original address format Pay to Public Key Hash (P2PKH) whose address starts with number 1, Pay to Script Hash (P2SH) whose address starts with number 3, and the native SegWit address format Bech32 whose address starts with bc1.

However, it’s just for withdrawals, when depositing to BitMEX, you must still send the exchange’s Pay to Script Hash (P2SH) format addresses due to their multi-signature wallet solution.

This upgrade will reduce the usage of the exchange’s blockweight, allowing its customers to enjoy lower transaction fees.

“The key advantage of Bech32 addresses is that transaction fees can be saved when spending Bitcoin, which was already sent to a Bech32 address. Therefore this upgrade will not directly result in fee savings when customers withdraw from BitMEX, however in the next transaction, when the bitcoin already withdrawn from BitMEX is spent again, our customers may benefit from lower transaction fees.”

Last month Bitfinex exchange also added native SegWit support for Bitcoin withdrawals.

Segregated Witness or SegWit is an optional protocol upgrade first implemented in 2017 that increases block capacity and thereby help lower costs per transaction.

From 36.6% on Sept. 1st 2019, SegWit adoption hit its peak in early October at 56.8% only to drop. Currently, we are at a 51.9% adoption rate, as per Woobull Charts.

BitMEX further shared its future plan to enable Segwit non-native support to its wallet. This will help them save 65% of blockweight, more than the usual 25% to 40%, the exchange said.

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Author: AnTy

Bitfinex Now Supports SegWit Addresses For Bitcoin (BTC) Withdrawals

The popular crypto exchange Bitfinex has announced that it is going to add support for SegWit (bech32) addresses for withdraws on its site. The company affirmed that bech32 is a Segwit address that starts with the characters bc1 and consists only of lowercase letters.

According to the company, one of the main advantages of this format is that it can offer the clients more protection against errors while typing, especially because it does not use uppercase and lowercase letters at the same time. Also, as the bech32 addresses only exist in the Bitcoin network, there is no more possibility of cross-chain mix-ups happening, the company affirmed.

At the same time, the company also announced new tools that could give the users a greater insight on real-time historical data. According to Bitfinex, clients can have improved insights on the spread, funding rates, open interest, and liquidation fund balances, too. Also, clients can now connect their Twitter accounts to their profiles if they wish.

Binance Also May Support Segwit In The Future

Segwit is becoming popular. Earlier in October, the CEO of the largest crypto exchanges in the world, Changpeng Zhao, confirmed that they could add Segwit support next year.

According to data extracted from Segwit.space, around half of the current Bitcoin traders and holders use Segwit, a number that is set to go up if Binance decides to add support.

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Author: Silvia A

SegWit Transactions Are On The Rise; Bitcoiner Makes A Deal With Binance’s CZ To Increase Adoption

Segregated Witness (SegWit) transactions on the Bitcoin network have recently increased. According to data taken from the network, the use of SegWit has spiked to 55% in September.

This is an optional protocol that helps the blockchain transactions to lower costs because it can accommodate more transactions in a single block. The SegWit protocol creates transactions which are around 25% smaller than non-SegWit ones.

Binance To Support SegWit

The CEO of Binance, Changpeng Zhao, has also indicated that the most important crypto exchange of the world could add support for SegWit transactions soon. As the exchange has a huge volume, it could help the network a lot.

In related news, Udi Wertheimer, a prominent Bitcoin developer, has affirmed that he would change the logo of his Twitter profile if the exchange added SegWit transactions. Despite signaling interest to do it, the exchange has been postponing the change for a long time now.

One of the main reasons why the upgrade has not happened yet is because SegWit is a “low priority” for the company. Zhao affirmed that current transactions “do work”, so upgrading them is not something that needs to be done as soon as possible.

Zhao has, however, hinted that the exchange could adopt SegWit transactions by 2020. Time will tell how this story will end, but the pressure for the world’s largest exchange to use this solution is growing a lot recently.

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Author: Gabriel Machado