Segregated Witness, or SegWit, support for Bitcoin deposits has been implemented by Binance, one of the world’s biggest cryptocurrency exchanges by volume.
The funding for SegWit was extended to Christmas Eve deposits, Binance said in an official statement. Initially, the protocol upgrade was allowed only for withdrawals.
Binance users can transfer funds to a SegWit (bech32) ad, effective immediately,
dress by choosing the BTC (SegWit) network. Explained Binance: “Please note SegWit should help reduce fees; however, if you incorrectly send incompatible assets to the address, your funds will not be recoverable and will result in permanent loss.”
SegWit, launched in 2017, is an update to the Bitcoin protocol intended to assist scale the network and fix associated bugs. SegWit is known for the way in which blockchain information is modified, namely by segregating signatures from transaction details. This improvement of the protocol enables more transactions to be stored in a single block, thereby increasing the volume of transactions.
Data from transactionfee.info reveals that SegWit is actually used for about two-thirds of Bitcoin payments. While Bitcoin has emerged as a value-storing monetary instrument, it continues to face scalability restrictions, which some say have impeded usage for regular use.As a payment protocol, the Lightning Network has been offered as a viable layer 2 scaling approach for Bitcoin. The Lightning Network is an additional layer that will allow immediate, lower-cost payments, unlike SegWit, which was a soft-fork upgrade to the Bitcoin protocol.