Bitfinex, the Hong Kong-based cryptocurrency exchange and one of the largest by trading volume, has today announced support for bitcoin deposit and withdrawals using Segregated Witness (SegWit) addresses. SegWit is a Bitcoin protocol improvement that facilitates scaling.
The SegWit implementation will provide Bitfinex users with lower transaction fees and improved processing times on transactions across the Bitcoin network.
SegWit is the process of increasing block size limits by separating signature data from transactional data in bitcoin transactions. In addition to increasing capacity, SegWit will also effectively fix transaction malleability, a potential attack based on the modification of transaction IDs prior to network confirmation.
SegWit also lays the foundation for future Bitcoin development efforts, including the implementation of Lightning Network, which will allow the Bitcoin network to process millions to billions of transactions per second.
“As a premier exchange, Bitfinex is committed to constantly improving its market-leading offering for our loyal and discerning customers. SegWit represents not only an immediate change but a platform through which all future development and success will take place. By supporting SegWit addresses, Bitfinex is tackling two of the biggest crypto-enthusiast headaches: high transaction fees and long wait times. We are delighted that through this implementation we can provide our customers with bitcoin withdrawal fees that are up to 20 percent lower, as well as faster-than-ever transaction speeds.”