Bitfinex Adopts SegWit

It has been reported that Bitfinex now supports SegWit, which means that those who have invested in Bitcoin can expect to see lower fees and faster processing times. They have announced that they are delighted about this decision and that Bitcoin deposits and withdrawals will be supported using P2SH Segregated Witness (SegWit) addresses.

This is a Bitcoin protocol improvement that facilitates scaling. This means that any Bitfinex users will experience 15% lower withdrawal fees, and quicker transaction times across the Bitcoin network. It works by increasing block size limits, by separating signature data from transactional data in all Bitcoin transactions. It will also fix transaction malleability, which is an attack that has been based around the modification of transaction IDs prior to network confirmation.

The incorporation of SegWit opens so many doors for the development of Bitcoin. Paolo Ardoino, the CTO of Bitfinex said;

“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% lower, as well as faster than ever transaction speeds.”

Users have been provided with Seg-Wit enabled Bitcoin wallets; however, they will need to generate a new deposit address from their Bitcoin deposit page in order to receive the SegWit-enabled address. It should be strongly noted though that SegWit has been implemented for Bitcoin only, and not Bitcoin Cash. If you send Bitcoin Cash, this will be lost, so please check beforehand.

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