The SegWit usage, that allows for faster and cheaper Bitcoin transactions has broken above 50 percent for the first time ever.
While we came close on numerous occasions, first in October last year at over 48.1%, then in late March this year at 48.7% and last month, we hit 49.6% only to drop back to 42%.
On Sept. 15, the percentage of SegWit spending payments finally crossed the 50% threshold at 50.47%.
Segregated Witness is an upgrade to Bitcoin protocol that was first introduced by developer Pieter Wiulle in December 2015 that separates the digital signatures from the transactions.
In order to combat the scalability issue of Bitcoin, SegWit was introduced that increases the block size from regular 1MB to up to 4 MB.
On August 23, 2017, SegWit was initiated for the first time.
However, being a soft fork, not every transaction is using SegWit.
In June of this year, BitMEX said it is seeking to implement it. They have been testing SegWit bundled with other backend upgrades that the exchange said would help them in monitoring more addresses and further rotate them freely.
“It is our intention instead to reduce the space we occupy using SegWit & batching, and eliminate the need for some types of withdrawals entirely using Liquid,” BitMEX staff wrote at that time.
Blockchain.com, as we reported recently, has reached a record of 40 million wallet users with no SegWit in sight. Back in 2017, Peter Smith, the CEO of the company first said they are “ready for it” and today after more than two and a half years, it is yet to implement SegWit.
Blockhain.com manages over 20% of all Bitcoin transactions, meaning those users are overpaying on tx fees.