Increased SegWit Adoption May have Finally Solved Bitcoin’s Fee Problem

A couple months after two of the largest cryptocurrency trading exchanges, Bitfinex and GDAX, finally adopted the bitcoin SegWit protocol, transaction fees for the currency are finally back to reasonable levels. Bitfinex, on February 20 2018, announced support for bitcoin deposit and withdrawals using P2SH Segregated Witness (SegWit) addresses while GDAX, on February 23, introduced a phased rollout for all its customers. By early March, both exchanges had successfully transitioned their entire infrastructure from legacy bitcoin addresses to SegWit compatible ones.

Importantly, the adoption of SegWit by exchanges came only after the entire cryptocurrency community clamored for it in a bid to reduce bitcoin fees. Nevertheless, after ignoring much of the demand for transaction batching and SegWit since the latter’s release in August 2017, it seems as if the exchanges are finally taking user feedback much more seriously.


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