Major Infrastructure Upgrade
Our engineers have finally finished upgrading our whole infrastructure. Now our system supports SegWit Bech32/P2WSH addresses. There are a lot of benefits when using SegWit addresses, including lower fees and faster transaction speed.
For those unfamiliar, SegWit is a Bitcoin protocol update that occurred in August 2017 in an attempt to ease the blockchain’s scaling woes. Without getting into too much detail, SegWit effectively separates, or segregates, the signature data, or witness data, from bitcoin transactions. Doing so enables a Bitcoin block to hold more transactions, which in turn, increases the network’s scalability.
Bech32 is a bitcoin address that is fully compatible with SegWit. Many people refer to Bech32 addresses as bc1 addresses because their address strings always start with ‘bc1’.
Before getting into the benefits of Bech32 addresses, let’s talk about why you should, at a minimum, support SegWit if you don’t already.
Primarily, transactions that utilize SegWit are cheaper and significantly faster than traditional bitcoin transactions.
Because SegWit separates the signature data from a transaction, you can fit more transactions into an individual Bitcoin block. Doing so removes the seven transactions per second maximum that previously existed for Bitcoin’s throughput. So with SegWit support, your users can transact bitcoins without the ridiculous wait times we saw during the 2017 bull run.
Fitting more transactions into each block also leads to lower fees for your users. Fees on SegWit transactions are generally 25 to 40 percent lower than non-SegWit ones.
Fresh Mining Team.
May-25-2020 11:26:33 AM