Bitcoin SegWit Transactions Now Hitting All-Time Highs
As a result of the most current Bitcoin Core 0.16 update, the utilization levels of Bitcoin SegWit have been taking off. This substantial uptick in usage levels may also be attributed to a number of major exchanges and wallet providers such as Coinbase and Bittrex eventually implementing this technology into their platforms. This uptick means there could be a reduction in times and global bitcoin transaction fees.
Segregated Witness (SegWit) is a means of bundling transaction together into blocks, which is a far more efficient way for transactions to be processed.
The Bitcoin network has experienced high levels of congestion since its popularity exploded in 2017, with issues abound regarding how to scale the network. This led to higher fees and slower trade times which were turning a great deal of people away from using Bitcoin.
SegWit's adoption is aimed at drastically reducing this level of congestion.
The main issue that's been holding back the widespread adoption of SegWit across the area is that it has to be specifically enabled on pockets and exchanges. This means you want to have SegWit wallet addresses that are specific and these cannot be used to bridge non-SegWit and SegWit transactions.
Thankfully, the adoption rates of the technology have been growing rapidly in recent days due to this new update and the adoption by exchanges.
The use of SegWit as a percentage of total daily bitcoin trade was averaging around the 15% mark for some time up until last week when these events have caused a steady uptick in adoption levels.
In the past 24 hours alone, SegWit usage levels have hit peak levels of adoption in the 30 percent of total Bitcoin trades mark.
Monday the 26th of February saw the release of the most current Bitcoin Core update labeled v0 16.0 and this provided full support to SegWit scaling technology.
There are other improvements that have been made as part of the upgrade, but SegWit adoption and support is the major aspect that most people are focusing on. Since SegWit was originally released in August 2017, widespread adoption of the technology has been something that Bitcoin users have been continuously requesting.
While a lot of the substantial wallet provides and exchanges have taken their time implementing this technology, finally growing pressure from their users as a result of slow trade times and large fees pushed them to do something.
This adoption will also lead to further significant improvements to Bitcoin in the future, such as the execution of the Lightning Network which might allow transaction times and fees to trend near zero.
This is an exciting time for Bitcoin and cryptocurrencies as a whole as a breath of fresh air was blown into the markets, with costs responding positively to this news.