Luno, one of the most important cryptocurrency exchanges in South Africa, has fully integrated Segregated Witness (SegWit) on Bitcoin transactions. This is not the first crypto exchange that decides to add support for SegWit. Today, the famous platforms Coinbase and Bitfinex have announced that they have implemented SegWit into their systems.
Luno Adds Segregated Witness
On February 14th, Luno wrote a blog post explaining that it has fully integrated SegWit on Bitcoin transactions. The post signed by the Head of Marketing and Communications at Luno, Werner van Rooyen, reads as follows:
“We’d like to thank you for your patience. We planned on launching SegWit much earlier, but with the price, interest, transactions and new customer registrations reaching incredible peaks over the past two months, we had to apply all our resources to ensure site reliability and faster response times.”
The cryptocurrency exchange had already implemented SegWit on Bitcoin send transactions during December 2017. It has also implemented SegWit internally, reducing customer fees by 25%. In order to add a SegWit wallet address, users need to follow a few simple steps that are explained in the blog post.
Cryptocurrency users have shared their opinions about the SegWit implementation by Luno. For example, the Reddit user crakinxp commented:
“This is nice, more and more exchanges are implementing SegWit now… cheaper fees and faster transactions, bright future for Bitcoin!”
Luno explains that they are working in order to upgrade the world to a better financial system. With SegWit and its implementation, the platform believes that a new milestone has been reached in this way to a new financial world.
With most major exchanges boasting SegWit support, Bitcoin transaction fees are now the lowest they have been in 18 months (Around R1.10)
— Jameson Lopp (@lopp) February 21, 2018
Coinbase and Bitfinex Add SegWit Support
Luno is not the only cryptocurrency exchange that has added SegWit support. Coinbase and Bitfinex, two of the most important cryptocurrency platforms, have added support for Segregated Witness.
Coinbase has decided to inform its users using Twitter, explaining that the intention is to reach 100% of the customers in the next week. At the same time, Bitfinex wrote in a blog post that SegWit allows the Bitcoin network to scale.
“As a premier exchange, Bitfinex is committed to improving its market-leading offering for our loyal and discerning customers,” reads the post. “SegWit provides not only an immediate benefit for users but also a foundation for future Bitcoin development.”
Coinbase, Luno, and Bitfinex manage an important amount of users, meaning that the effect on the Bitcoin network will be visible. Users will be able to send and receive Bitcoin in a faster and cheaper way.
What is Segregated Witness?
SegWit is a soft fork change in the transaction format of Bitcoin transactions. It is a protocol improvement that allows the network to scale. Segregated Witness separates the signature data from the transaction data. In this way, Bitcoin transactions require less information, liberating block space and allowing more transactions to be included in each block.
As the network will be less congested, Bitcoin fees will be reduced and transactions will be processed faster. SegWit relieves Bitcoin’s congested network without being the ultimate scaling solution proposed by developers (Lightning Network).
It is important to mark that SegWit is not the same as SegWit2x. SegWit2x was a canceled hard fork for the Bitcoin network that in addition to adding SegWit support, it wanted to upgrade bitcoin block size from 1mb up to 2mb. In this way, the current scaling issues were going to be solved.
The hard fork was canceled due to the lack of support from the Bitcoin community. The hard fork was expected to take place on November the 16th and it was canceled 8 days before the estimated date.
In the end, the SegWit2x hard fork took place on December the 28th, 2017.