Mercury Cash Exchange Adds SegWit Bitcoin Wallets For BTC, Gives Its Users A 30-Day Ultimatum
Mercury Cash Adds SegWit BTC Wallets For BTC, Gives Its Users A 30-Day Ultimatum
It’s now official – Mercury Cash, a Bitcoin and cryptocurrency exchange, now supports Bitcoin Segregated Witness transactions, popularly known as SegWit. This follows an announcement made on 28th January 2019 by the hosted-wallet solution.
Usually, Mercury Cash permits seamless and real-time liquidation and trade between fiat and cryptocurrency. However, following the new development, the exchange’s users will have their non-SegWit BTC wallets phased away gradually. For now, though, they will be disabled and kept under strict internal monitoring.
Active users of the exchange have a 30-day period within which, if a transaction is received via the old wallet, the contact support will have to release the assets to the new wallet. The 30-day period starts from 29th Jan and when it expires, any BTC received through the old non-SegWit BTC wallets will be irrecoverable.
Why SegWit BTC wallets
The need for SegWit BTC wallets in this exchange was long overdue, especially at a period when the entire industry is crying for a solution to cryptocurrency scaling problems. The original idea is credited to Pieter Wiulle who pitched it in 2015 in front of a December Scaling Bitcoin conference.
Two years later, Litecoin was the first to embrace it, making a new beginning in solving cryptocurrency scaling problems. Bitcoin adopted it on 23rd August 2017, about three months later. With Mercury Cash making the change, it’s undoubtedly a move in the right direction for its ardent users.
The need for SegWit BTC wallets is due to the restrictive seven transactions per second that a maximum 1MB block in the central protocol limits can process. It often hampers the growth potential of BTC and further prevents it from becoming a viable high-volume payment getaway for many in the industry.
However, while this will allow Mercury Cash to handle more transactions in a block, Mercury Cash needed it as a solution for a bug in the code. The bug, called transaction malleability, had led to a flaw that allowed anyone to make small changes in the detail and thus modify the transaction ID.
The flaw did not affect Bitcoin, although its effect on the development of complex features like 2nd layer protocols and smart contracts was profound. And so, by incorporating SegWit BTC wallets, the exchange will have fixed the bug and subsequently removed the transaction signature so that it’s stored outside the transaction block. It’s a great move since any signature and scripts changed would have no impact on the transaction ID.