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Bitcoiners are organizing themselves to put pressure on exchanges and wallets to implement SegWit

Despite the fact that the SegWit bifurcation was activated some month ago in the Bitcoin network, not all the exchanges and wallets have adopted it yet.

SegWit, short for Segregated Witness, is a protocol developed with the goal of freeing the block space in the Bitcoin network, by separating the signatures from the rest of transaction data, hence the name. This space can be used to add more transactions to each block without having to increase the size of the blocks. Another bifurcation called SegWit2x wanted to enlarge the blocks, but it failed to be implemented and was forgotten.

Some of the benefits of SegWit are: better scalability, ability to fight malleability, shorter times of confirmation and therefore lower commissions and the possibility to add new protocols such as Lightning Network, a channel for off-chain payments which could decongest even more the network.

After the activation of SegWit in the network, less than 16% of the total amount of transactions in the network was performed with it, according to SegWit Party. This is because it is an optional update in the network. Subhan Nadeem published an article on Hackernoon saying the protocol is available to everyone who want to implement it. Lower commissions and more transactions pre block can happen immediately. The code is there, waiting to be used. The problem is SegWit is not adopted by wallets, services and, lastly, by users, according to Nadeem.

SegWit transactions can help save 30 to 40% when it comes to commissions, comparing them with regular transactions without SegWit. Nadeem urges the bitcoiners to start using SegWit with the exchanges and wallets that have implemented the bifurcation and make use of the improvements and benefits it is offering.

Nadeem also said the reason many exchanges and wallets have not yet implemented SegWit is due to low demand by the clients. When users begin asking for SegWit, exchanges and wallets will start introducing it. He urged the bitcoiners to protest through Reddit and put pressure on exchanges and wallets to start implementing SegWit.

With Bitcoin rising rapidly, it is important to have quick solutions. The commissions have risen a lot lately and we have seen the commission market growing due to competition between users to prioritize their transfers.

Patrick McCorry, the first PhD in cryptocurrencies in the United Kingdom, says the blockchain technology is still in full development and, despite the current high commissions in the Bitcoin network, the fact that there are people willing to pay them says a lot about the receptivity of the blockchain technology, despite its current flaws.

McCorry thinks SegWit is not a solution for the scalability, but thinks Lightning Network will be able to offer solution for this issue.

Bitcoiners should know about SegWit and its advantages, especially when it comes to avoiding high commissions on the market. According to the list created by Bitcoin Core, there are 91 entities (exchanges, wallets and other services) that implemented SegWit. Twenty-four entities plan on adopting it and 25 are in the process of implementing it.

Some of the wallets that implemented SegWit are: Digital Bitbox, Ledger Nano S, Armony, BitWallet, GreenBits, Electrum and others. When it comes to exchanges, you can use SegWit on Gemini, Kraken, Bitfinex, Bitonic, CoinCheck, OpenBazaar and others.

 

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