Binance, one of the world’s largest cryptocurrency exchanges by volume, has added support for Segregated Witnessor SegWit for Bitcoin (BTC) deposits.
SegWit support has been expanded to include deposits made on Christmas Eve, Binance said in an official statement. Log update was originally only enabled for withdrawals.
With immediate effect, Binance users can transfer money to a SegWit address (bech32) by selecting the BTC network (SegWit). Binance stated:
“Remember, SegWit should help reduce fees. However, if you transfer incompatible assets to management, your funds cannot be reclaimed and will result in permanent loss. “
Implemented in 2017, SegWit is an update to the Bitcoin protocol that can be used to scale the network and correct the errors associated with it. SegWit is known for updating data on the blockchain i.e. H. Separating the signatures from the transaction data. This log update allows more transactions to be stored in a single block, increasing transaction capacity.
Data from transactionfee.info shows that roughly two-thirds of Bitcoin payments currently use SegWit. Although Bitcoin emerged as a monetary instrument for storing value, It continues to face limitations on scalability that some say has prevented its adoption for everyday use.
The Lightning Network was offered as a viable Layer 2 scaling solution for Bitcoin as a payment protocol. In contrast to SegWit, a soft fork update of the Bitcoin protocolLightning Network is an additional layer that can enable instant transactions at a lower cost.
Despite limited transaction capacity, Bitcoin remains the de facto leader in the digital currency market. Dominance over other crypto assets recently hit an annual high. At the time of writing, Bitcoin’s dominance rate was 68.7%, according to CoinMarketCap.