The global cryptocurrency market’s most significant brokerage and wallet platform, Coinbase valued at $1.6mln in last week. But it is now criticized for the absence of SegWit (Segregated Witness) and batching transaction.
Lacking in Batching transaction and SegWit
The lead engineer and architect at multi-signature blockchain security service provider BitGo, Jameson Lopp stated:
“Low hanging fruit: offers users high, medium, and low priority fee choice when sending. Batch transactions together every X minutes. It’s not a new revelation that a significant cause of bitcoin network congestion is from popular services such as Blockchain, Coinbase, and Gemini who are using block space inefficiently. If you don’t want to contribute to the problem, don’t use them”.
Lopp noted that currently major cryptocurrency exchanges like Kraken, HitBTC, Bitstamp, QuadrigaCX, and LocalBitcoins are using SegWit and batching IIRC to lessen transaction fees and congestion by relieving bitcoin blockchain network.
As such, the second most popular wallet platform, Bitcoin Mempool remains above 121mln bytes with 1.05MB average blocks. Though the daily transaction of bitcoin is actually down over 450000 transactions to 225800 transact.
The holding area for unconfirmed transactions on the Bitcoin network in which Mempool operates. Thus, Miners chooses deals to verify and confirm payments. Later on, the operations will be sent to the bitcoin blockchain.If at all the mempool is congested, the transaction process will be slow for miners and also decrease in efficiency, usability, and accessibility of bitcoin.
Lopp has criticized essential businesses like Coinbase and Blockchain for not implementing dynamic fee system, batching and SegWit to reduce fees or their customers.The Coinbase process more transactions than 70% of the business and also impact immensely on Bitcoin.
Response from Coinbase CEO
In response to the criticisms, the CEO at Coinbase, Brain Armstrong stated,
“Coinbase is working on batching transactions, SegWit, and many other strategies to improve transaction backlog. Thanks for bearing with us”.
Further, the implementation of batching transactions and SegWit can efficiently improve the scalability of Bitcoin. And also to reduce congestion on the bitcoin network by massive limits without clarity. Although, the overall scenario of Bitcoin community is aiming to have Batching and SegWit completed first.