Coinbase adds Segwit support

Coinbase adds Segwit support

After months of questioning, Coinbase has announced that it will add Segwit support to bitcoin wallets. The move, expected for some time, should cut commissions on transactions for Coinbase and GDAX users if it gets impeached.

Those at Coinbase were criticized for storing inefficient transactions, which cost them and the users. Coinbase dominates the market. People hope that once Segwitt is activated, it will reach the critical mass needed to make the new technology become the default setting across the industry.

Coinbase is finally gathering

Coinbase posted Monday on Twitter what their users expect to hear for several months: “Our engineering team has entered the latest Segwit testing phase for Bitcoin, Coinbase. Segwit-compliant shipments will be available for customers in the coming weeks. ”

By any standard, Coinbase has postponed the introduction of Segwit’s compatibility with its bitcoin wallet. Scalability technology helps reduce the average size of the bitcoin transaction. So more data can be crammed into one block. Bitcoin transactions are commissioned per byte. Therefore, smaller transactions involve lower commissions. Despite the fact that Segwit is compatible with the previous versions, so it’s not a risky code change, Coinbase has postponed its implementation for months.

On the other hand, Coinbase has billions of dollars in custody. They have the duty to be careful with the clients’ funds. Coinbase postponed the Segwit code for quite some time. Meanwhile, director Brian Armstrong has dealt with his favorite projects at ethereum. The community has accused them of having the wrong priorities. Large commissions have been a problem for bitcoiners in general, and have given emotions in particular to users on Reddit. Users were already desperate to hear news about lower fees on bitcoin.

Adoption of Segwit is still slow

Segwit is not a magic wand to solve big bitcoin commissions. However, at least one-third of the average commission decreases, which is a start. Commissions have generally declined lately, at a time when bitcoin has fallen. Now there is a fee of 130 satoshi per byte (about $ 6). Adoption of Segwit, at best, was limited to a miserable figure of 16%, despite the fact that scaling technology is available for six months.

When Coinbase finally adds the Segwite in the coming weeks, it will be interesting to see what effects it will have on the total figure. Once I do that, Coinbase only has to bake the new ritual transactions and the community will be more lenient with them.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: