October 28, 2020

Bitfinex Exchange Launches SegWit Address Support for Bitcoin Output

Bitfinex, a major cryptocurrency exchange, announced the addition of support for Beg32 format SegWit addresses for output bitcoins.

Bech32 addresses start with the characters “bc1” and transactions with them turn out to compress more than with P2SH addresses that begin with the character “3”.

The exchange said that support for withdrawing funds toBech32 addresses will reduce fees. Also, the use of such addresses will allow "to exclude the possibility of inter-block transactions, since Bech32 addresses exist only in the Bitcoin blockchain."

SegWit is an optional protocol update.blockchain, which allows you to collect more transactions in one block, which reduces their cost. SegWit efficiency can vary and reach 25%.

Gemini Exchange Added Full Address SupportBech32 back in April of this year, and next year Binance will start supporting such addresses. In addition, more than half of the transactions in the Bitcoin blockchain use the SegWit update.

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