BitStamp Adds Full Native Support for SegWit Bitcoin Transfers with Bech32 Addresses
Cryptocurrency exchange Bitstamp has implemented SegWit bitcoin transfers allowing its users to withdraw bitcoin to bech32 addresses. Users can also generate new deposits when using this format.
ADDRESSED: We’ve added full native SegWit support to Bitstamp! Our customers can now create #Bitcoin addresses in the new bech32 format: https://t.co/oDgv6S89mg #Bitcoin #SegWit #Bitstamp pic.twitter.com/sq3kXIF7qh
— Bitstamp (@Bitstamp) February 27, 2020
Implemented in 2017, SegWit or Segregated Witness is a Bitcoin protocol upgrade designed to help the network scale. Because more than half of the bitcoin network nodes need to agree that a transaction is valid, reach the consensus, scalability is a problem with cryptos.
Pieter Wuille proposed SegWit to prevent transaction malleability and in-process improve the scalability by removing the witness data, which takes up 65% of every bitcoin block, to make more room for transactions.
However, not everyone supports Segwit, in fact, two popular crypto exchanges Coinbase and Binance are not on board yet. Currently, the adoption rate of SegWit is nearly 60%. BitStamp was the leader in implementing this protocol update.
“We’ve always supported the development of new technologies that can help Bitcoin reach its full potential to store and transfer any amount of value anywhere in the world quickly and cheaply.”
Due to this hi-tech enhancement, BitStamp has also generated new bitcoin deposits addresses for all of its customers. Users however, have the choice to use the previous or the new one but the exchange insists on switching to the latest one, bech32 as “it provides an efficiency boost to Bitcoin transactions.”
The latest bitcoin address format, bech32 is specifically designed to work with SegWit technology and has a number of other technical benefits such as limiting human error while typing addresses and increasing efficiency by saving space on the blockchain.
These bech32 addresses invariably begin with “bc1” on the bitcoin network and are not case sensitive. As such, reducing the probability of anyone making spelling mistakes while typing addresses and unintentionally sending coins to the incorrect blockchain.
Additionally, it features automatic address format checking to ensure that BTC isn’t sent to an invalid address.