We are glad to announce that from now on HitBTC supports SegWit technology. Want to try? Create your new Bitcoin address today, enjoy faster transactions and lower fees, and be ready for future improvements!
What is SegWit?
This is a technology aimed to cure a whole series of original Bitcoin imperfections, such as:
- Possible malleability bugs
- Blocks being clogged with transaction data, reducing network speed
- Fees are getting higher
The idea is simple. As for before, each transaction had contained quite a lot of data. Besides inputs and outputs, there also could be found scripts and signatures. They are used to make sure that this transaction is legit. Therefore scripts and signatures from every transaction are being stored in the block among the other important data.
Eventually the block size limit of 1 Mb had turned out not to be enough for rapid Bitcoin network operation. Transactions would stuck and take more time to proceed, and the fee costs in USD had been increasing drastically sometimes.
SegWit technology segregates scripts and signatures from other transaction data and stores them in a separate extended block. As a result, there’s more room for transactions in the original block. And more room for further improvements, such as blockchain scalability and speed being enhanced.
It’s been a long way for SegWit to become implemented, since the first signs of its necessity have appeared even in 2012. On August 23rd, 2017, it has finally activated on Bitcoin.
What does this mean for you?
From now on we support incoming and outcoming SegWit transactions. SegWit is a backward-compatible technology, which means none of existing functionality will be affected in any way. Feel free to withdraw your coins to non-SegWit addresses, same goes for deposits.
To start receiving SegWit transactions, simply create new Bitcoin address in your account. From today on, every new generated address will be compatible with new technology. Your old address will also remain active as well.
Outcoming transactions are now also sent in SegWit format. Withdrawal fees are about to decrease by 50%.