One of the largest, certainly by trading volume alone, cryptocurrency exchanges, Bitfinex, has introduced SegWit to its platform. “SegWit” means, “Segregated Witness”. Every Bitcoin block chain has a maximum capacity of 1MB. When this block chain fills up, the introduction usually takes longer than one might expect. It holds up the process for sure.
Generally, it can take about ten minutes for a new block chain to be tacked on. And until this addition, no new transactions can occur. What a staggering pain. Until the developer of “Bitcoin Core” and co-founder of “Blockstream”, Doctor Pieter Wuill, figured to speed things along, remove that which isn’t necessary—signature blocks.
By allowing new transactions to quickly fill in the gap of fresh blocks, these transactions are fast and save everyone a ton of time. Bitfinex, already a busy, large exchange, are likely to see even more action thanks to the adoption of SegWit. Faster transactions translates to lower fees.
Bitfinex CTO, Paolo Ardoino said of their move: “…SegWit represents not only an immediate change but a platform through which all future development and success will take place…Bitfinex is tackling two of the biggest crypto-enthusiast headaches: high transaction fees and long wait times…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.”
Any disparaging words against SegWit are so far, nil; and the technology for removing useless data from block chains, in high demand. SegWit is essentially the pioneer for all things fast, a perfect precursor to the Lightning Network. The latter is potentially responsible for billions of Bitcoin transactions within mere seconds.
Bitfinex is once again taking the stage to show the rest of the world and its markets, how systems can improve while forever expanding their client base. And suddenly, as of writing this, word has it SegWit will soon go to Coinbase. This would make plenty of sense for its huge client base as well, their fairly high fees. Crypto certainly moves quickly and will only get faster.