Coinbase to Implement SegWit Upgrade Soon

Feb 07, 2018 at 13:28

Cryptocurrency exchange, Coinbase, said that it will finally implement the Segregated Witness (SegWit) scalability upgrade for Bitcoin addresses to reduce transaction times and fees for sending and receiving Bitcoin.

In a statement released through Twitter, Coinbase said that its users should expect the upgrade to be implemented in the “next few weeks.” The move was made after a petition started by its customers urging the company to prioritize SegWit upgrade, garnered over 12,000 signatures.

However, even if it is already in the final stages of testing for the SegWit implementation, Coinbase reminded customers that they still prioritize security and performance over new features.

It can be recalled that the cryptocurrency bourse first announced the decision to add the SegWit upgrade in December 2017. The upgrade, introduced by the Bitcoin Core development team in August 2017 deals with the scalability problem of Bitcoin by reducing the size of transactions.

Popular crypto wallets Trezor and Ledger had upgraded to SegWit shortly after its August release as slow transaction times and network congestion affected Bitcoin traders in the recent months with some Blockchain-based businesses already moving away from Bitcoin due to increasingly high transaction fees.

The innovation that will be introduced by Coinbase will involve moving of the “witness” signature data to the end of every transaction to solve Bitcoin’s malleability issue which is conducive to second-layer solutions like the Lightning Network.

Recently, the North American Bitcoin Conference had to stop accepting cryptocurrency payments noting that print deadlines would be impossible with network congestion and manual processing.

Last month, software engineer and cypherpunk Jameson Lopp claimed that cryptocurrencies services such as Coinbase, Blockchain, and Gemini are causing network congestion by “using block space inefficiently.”