Bitfinex and Coinbase—two of the biggest cryptocurrency exchanges—have announced support for the Segregated Witness. This comes after news that new codes which contained SegWit scaling support were to be unveiled by bitcoin developers in coming days.
— Bitfinex (@bitfinex) February 20, 2018
The Segwit support was first announced by Bitfinex on Tuesday, who stated that they support, has been enabled on its trading platform. In the company statement, it’s Chief Technology Officer, Paolo Ardoino talked about the immediate and long-term benefits of the upgrade.
[perfectpullquote align=”left” bordertop=”false” cite=”” link=”” color=”” class=”” size=””] “As a premier exchange, Bitfinex is committed to improving its market-leading offering for our loyal and discerning customers. SegWit provides not only an immediate benefit for users but also a foundation for future Bitcoin development. By supporting SegWit addresses, Bitfinex is tackling three of the biggest crypto-enthusiast concerns: transaction fees, transaction speed, and total network capacity. 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.”
– Paolo Ardoino, Bitfinex CTO [/perfectpullquote]
In a similar development, Coinbase announced that its engineering team had completed testing of the SegWit upgrade for Bitcoin and will launch it to customers in a few days. The launch according to Coinbase will be in phases as it expects it to be available to all customers by next week.
Our engineering team has finished testing of SegWit for Bitcoin on Coinbase.
We will be starting a phased launch to customers over the next few days and are targeting a 100% launch to all customers by mid next week.
— Coinbase (@coinbase) February 20, 2018
Bitfinex and Coinbase are among the biggest exchanges that trade bitcoin, with Bitfinex boasting daily trading volumes of over $1 billion.
SegWit represents a change in the transaction format of bitcoin which divides a transaction into two, separation the witness data from the original transaction hence the term “segregated witness”. This improvement will increase the speed of transactions, reduce fees and fix an undesirable malleability problem.
SegWit was activated on the bitcoin network in August 2017 and has also been implemented on other cryptocurrencies like Litecoin, DigiByte, and Vertcoin.