Segwit support introduced by GDAX exchange, Bitcoin will be able to reduce the transaction fees

Segwit support introduced by GDAX exchange: GDAX which is the professional trading platform of Coinbase recently announced the Segwit support. This comes on the heels of the news that Bitcoin core will be modified to include Segwit support.

With the help of Segwit code development, Bitcoin will be able to reduce the transaction fees. Moreover, the network will become much faster and scalable. Coinbase has promised its users that it will provide full Segwit support on the platform. They have already begun a phased launch. Eventually, they plan on providing 100% support for Segwit code.

Segwit code will also reduce the time which is needed for transaction verification on the Bitcoin network. This will make the network much more efficient. This will also verify transactions sooner which will increase the volume of transactions eventually. This will also end the problems of long waiting times for most of the merchants.

The Bitcoin core was released to the public on February 15. The Coinbase update just comes 5 days after the release. This clearly indicates that Coinbase plans to integrate Segwit support for its entire range of customers.

Most of the users of Coinbase have been eagerly awaiting Segwit support. That is why the announcement that it will be supporting Bitcoin cash was received with subdued interest in January 2018. Most of the traders believe that it will be announcing Segwit support at that time.

The Segwit support will be a huge step ahead for the Bitcoin network. It is currently plagued by higher transaction fees. Owing to this very reason, smaller value transactions are not possible on the Bitcoin network. With the help of this upgrade, the fees will reduce considerably. Moreover, with increased the transaction verification times, the number of merchants accepting Bitcoin will also increase. This will again increase the usability of Bitcoin. This will push Bitcoin into mainstream e-commerce.

This is the reason why this compatibility update by Coinbase is actually pretty significant. More exchanges are slated to follow suit. If indeed, Segwit compatibility is provided, many users will start using Bitcoin for real transactions rather than just for trading.

With the help of Segwit support, Bitcoin will be able to enter the mainstream digital economy. This will not only be better for the current investors but for the cryptocurrency itself as well. It will be able to finally realize its goal of providing a transaction medium rather than just trading medium.

Source url:

https://cointelegraph.com/news/coinbases-gdax-exchange-introduces-full-segwit-support

 

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.

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