Today, two of the world’s largest cryptocurrency investment platforms, Coinbase and Bitfinex , both announced that they were adopting support for Segregated Witness (SegWit) protocols for bitcoin (BTC) traded on their exchanges.
Ter its announcement , Bitfinex stated, “ The SegWit implementation means Bitfinex users can benefit from lower BTC withdrawal fees (approximately 15 procent) and improved processing times on transactions across the Bitcoin network.” The exchange did make clear that the support for bitcoin deposits and withdrawals using pay-to-script-hash (P2SH) SegWit addresses were the only ones thus far slated for bitcoin and not applicable to bitcoin contant (BCH).
Coinbase, on the other forearm, tweeted that it had finished testing for SegWit for Bitcoin. It will phase ter the launch, with the objective of “ targeting a 100% launch to all customers by mid next week.” Coinbase affirmed its project for a SegWit implementation on December 15, and seemingly delivered on the SegWit statements it made on February 13, .
Reasons for the support of using SegWit addresses are clear. Prior to the activation of the Segregated Witness soft fork te August , there were concerns about the scalability and malleability of Bitcoin due to the size limit of the blocks and a potential manipulation of the transaction ID. Thesis concerns had bot a source of debate for years until the “soft fork” permitted for protocol upgrades to the software.
While many hard and soft wallets already adopted support for SegWit protocols, the stir by both companies is hefty given the volume of bitcoin traded on each podium. At the time of this writing, both Bitfinex and Coinbase’s exchange, GDAX, accounted for almost one tenth of entero bitcoin trades overheen the previous 24 hours. This number underestimates the influence on BTC trading volume spil it does not include Coinbase’s wallet toneel. Both Bitfinex and GDAX are ranked spil top Ten exchanges te the world by trading volume, at 5th and 8th, respectively.
The positive news for both exchanges comes at a time of mounting pressure from the public. Coinbase has faced community backlash on higher Bitcoin transaction fees, customers’ inability to withdraw funds to PayPal accounts and credit cards being disabled spil a payment method for U.S. customers.
Bitfinex’s announcement comes on the high-heeled shoes of a tumultuous end to and a rough embark to , inclusive of fresh account registration issues, a CFTC subpoena and firing of auditor Friedman LLP.
With the announcements of SegWit adoption for Bitcoin, it seems that Coinbase has addressed a major punt for its consumer cojín, and Bitfinex has bot able to release some much-needed positive news for its customers amidst its latest controversies.
For more information on Segregated Witness, check out our earlier articles on Bitcoin Tv-programma.