Gemini Crypto Exchange Launches Full Support For SegWit Bitcoin (BTC) Addresses
Gemini crypto exchange has reported that an upgrade of its wallet features has enabled the use of Segregated Witness (SegWit) with Bitcoin (BTC) addresses.
The exchange announced this on April 15 via a blog post.
One of the problems of bitcoin has been the issue of scalability, seen as a hindrance to wider adoption of the crypto. it thus followed that bitcoin developers worked on SegWit as a solution to this problem. The upgrade was first activated on the bitcoin network towards the end of 2017.
In addition to introducing larger block sizes, Segwit is designed to move a transaction “witness'” signature data, setting it in a different location.
The solution introduces a scenario called transaction malleability, a feature that makes the network work well with layer two scalability solutions such as Lightning Network (LN).
Gemini is ostensibly the first major crypto platform to initiate full support for SegWit, with both deposits and withdrawals allowed. The firm has also added support for transaction batching, the blog post declared.
According to one Kim Johnson, who wrote about Gemini’s move for SegWit, the decision to adopt the native addresses wasn’t a light one. But overall, the move was hinged on prospective “block space savings.”
He also noted that the exchange’s move was underpinned by “safety concerns,” one of the key considerations for the Winklevoss twins-owned crypto exchange.
Johnson’s take is that segregating digital signatures leaves bitcoin’s transaction data about 30–40 percent lighter. This, he notes, means transaction data takes up minimal ‘block space’ and thus helps cut bitcoin’s transaction fee.
Incidentally, the fee has gone down considerably, augmenting efforts to have the crypto used for micro-payments.
Gemini notes in its article that initiating support for SegWit makes the eventual adoption of layer solutions like Lightning Network easier. LN allows users to open off-chain payment channels and thus helps bitcoin to scale.
Coinbase and GDAX, the predecessor of the exchange’s professional trading platform Coinbase Pro, added support for SegWit at the beginning of 2018.
Gemini, alongside Coinbase Pro, made the top 10 of an index released by analytics firm Messari. According to the firm, only 10 cryptocurrency exchanges have “real volumes.”
The index came out amid widespread claims that most of the cryptocurrency exchanges were faking their trading volumes. The “fake” volumes are majorly reported on unregulated platforms.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.