Binance, one of the world’s largest cryptocurrency exchanges by volume, has Segregated Witness or SegWit support for Bitcoin (BTCdeposits.
SegWit support was extended to Christmas Eve deposits, Binance said in an official statement. The protocol upgrade was initially only enabled for recordings.
Effective immediately, Binance users can transfer money to a SegWit (bech32) address by selecting the BTC (SegWit) network. Binance explained:
“Note: SegWit should help reduce costs; However, if you mistakenly ship incompatible assets to the address, your money cannot be recovered and will result in permanent loss. “
Deployed in 2017, SegWit is an upgrade to the Bitcoin protocol designed to help scale the network and fix associated bugs. Seg is white known for the way it updates data on the blockchain, namely by separating signatures from transaction data. With this protocol upgrade, more transactions can be stored in one block, which increases transaction capacity.
Data from transactionfee.info show that roughly two-thirds of Bitcoin payments are currently using SegWit. although Bitcoin has emerged as a monetary instrument for storing valueit still faces scalability limitations, which some claim has hampered adoption for everyday use.
The Lightning Network has been offered as a viable layer 2 scaling solution to Bitcoin as a payment protocol. Unlike SegWit, a soft fork update to the Bitcoin protocol, the Lightning Network is an extra layer that allows for instant, cheaper transactions.
Despite its limited transaction capacity, Bitcoin remains the de facto leader of the digital currency market. Her dominance over other crypto assets recently hit a year high. At the time of writing, Bitcoin’s dominance rate was 68.7%, according to CoinMarketCap.