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Is User-adoption of SegWit upgrade a game-changer for Bitcoin?

Mar 03, 2018 Posted /  4856 Views

Is User-adoption of SegWit upgrade a game-changer for Bitcoin?

Despite how much you criticize and no matter how many new digital currencies make way in the market every day, Bitcoin is the most rebounding and flexible cryptocurrency, if not the best. It is called, the king of cryptocurrencies, and I think nobody can doubt these claims. However, Bitcoin experienced a two-month long bearish cycle, during which it lost half of the value it has gained in its big rally. The amount of the transactions dipped below those of Bitcoin Cash, which was heart-wrenching for the enthusiasts who have firmly believed in it, since its inception.

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The possible reasons were dubbed as network times, which increased considerably after users rushed into the experience the mania. As the demand for the coin increased, so did the number of users, price and comparably network fees and transaction times. It becomes challenging and painstaking for the users to do smaller transactions as the charges went enormously high.

Now it was the turn of the media to set its brutal eyes on the network, and subsequently, the news started flowing that how several ventures and businesses ceased the use of bitcoin and processing of the same due to the enormous fees. Nevertheless, now circumstances have improved somewhat for the leading digital currency as transactions are cheaper even than the Bitcoin Cash ones.

Reaching a Milestone

Bitcoin has modestly made a significant breakthrough in its crusade to reach the masses. Segregated Witness, or SegWit, the software upgrade designed to expedite Bitcoin transactions, is augmenting and gaining traction. Seg Wit says that the number of operations employing the technology multiplied by more than 30 percent in a matter of the past three days.

As Bitcoin grew in fame and notoriety in the past year, the cryptocurrency network became clogged, making transaction times and fees tower leading to a massive slump in the growth of the digital currencies. If we talk about December, transaction costs soared to as high as $55, as per the BitInfoCharts. SegWit is proposed to resolve that problem by exercising some of the work required to authenticate transactions off the main chain, expediting the entire process.

Influential crypto-asset exchanges Coinbase Inc. and Bitfinex, which enjoys a considerable number of customer base started employing SegWit this month, aiding to speed up adoption. The upgrade was first announced in August.

Paolo Ardoino – Bitfinex CTO, was quoted in the exchange’s announcement of their SegWit upgrade saying:

“SegWit provides not only an immediate benefit for users but also a foundation for future Bitcoin development. By supporting SegWit addresses, Bitfinex is tackling three of the biggest crypto-enthusiast concerns: transaction fees, transaction speed, and total network capacity. 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.”

Transaction fees have dropped to a four-month low of $2, though confirmed transactions per day have also declined to around 200,000 from more than double that number in December.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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