On February 20, 2018, two major cryptocurrency exchanges Coinbase and Bitfinex announced they were ready to integrate Segragated Witness (SegWit) scalability upgrade for Bitcoins traded on their platforms.
Coinbase tweeted that all the tests were done and they will start a phased launch to their customers and they are aiming for all of them to be upgraded by next week.
The main purpose of the SegWit is that it will reduce the fees and heighten the transaction speed when transacting with Bitcoins. Many cryptocurrency investors had a lot of interrogations about the scalability and the malleability of Bitcoin. SegWit is the network that will make the issues a thing of the past.
In trade volume, Bitfinex is currently the 4th biggest cryptocurrency exchange. During the announcement on their upgrade version of SegWit, Paolo Ardoino Bitfinex CTO mentioned,
“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.”
The latest Bitcoin core client version 0.16.0 that was released last week also added SegWit updated version.
Many Bitcoin enthusiasts gave Coinbase their fair share of critiques recently regarding the outrageous fees of transactions. On the other hand, Bitfinex had a difficult start in 2018 due to new registration account issues, so, for both exchanges, those are good news as they both will benefit from the fast and cheap transactions SegWit has to offer.