- Coinbase Exchange Implements SegWit Compatibility on Bitcoin deposits and withdrawals.
- SegWit Compatibility will allow for faster and cheaper transactions.
Coinbase Exchange: Earlier last week, Coinbase exchange made plans to implement a long-awaited software update “SegWit Upgrade” on Bitcoin deposits and withdrawals in a bid to cut down the transaction fees that its customers pay during transaction in Bitcoin.
The upgrade should be implemented over the coming week according to report, and should allow for faster and cheaper cryptocurrency transactions on the platform. SegWit was first introduced in August of last year by developers through BIP 141 (Bitcoin Improvement Proposal), however Coinbase Exchange was slow to implement the technology. The lack of adoption of the technology by the cryptocurrency exchange increasingly frustrated Coinbase customers, who initiated a petition calling for Coinbase to prioritize implementing SegWit upgrade over other upgrades. The petition noted that the Bitcoin community is “overwhelmingly in support” of SegWit, and was signed over twelve-thousand times.
Segregated Witness (SegWit) was a major improvement to the Bitcoin protocol. By redefining the structure of blocks, it will become possible to greatly reduce the space taken by transaction and witness data on the blockchain. This change will therefore allow more transactions to be stored in each block, making the blockchain more efficient and cheaper to use.
However, Coinbase exchange is not the only platform adopting this technology lately. The Bitcoin Core wallet, last week, upgraded to allow SegWit Transactions. Bitfinex also made an announcement stating that it is now utilizing SegWit on Bitcoin transactions. In its blogpost, Bitfinex was clear enough on the advantages of the upgrade, stating:
“We are delighted that through this implementation we can provide our customers with bitcoin withdrawal fees that are up to 20 percent lower, as well as faster-than-ever transaction speeds.”
Regarding the upgrade, Coinbase offered a clear warning to its customers not to confuse Bitcoin with Bitcoin Cash deposit addresses and avoid sending Bitcoin Cash to a Bitcoin address. This is because following the SegWit upgrade, the exchange would no longer be able to retrieve funds sent wrongly.
“While SegWit should help reduce fees, once we begin rolling out this change, if you incorrectly send Bitcoin Cash (BCH) to a Bitcoin (BTC) address, your funds will not be recoverable. Sending the incorrect digital assets to a deposit address will result in permanent loss.”
With the adopting of SegWit, it is expected that there will be a significant increase in the speed of Bitcoin transactions on Coinbase exchange.
— Sergej Kotliar (@ziggamon) January 12, 2018
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