Coinbase is offering an update on Bitcoin SegWit to their customers within few weeks. It is to improve the transaction capacity of the Bitcoin network.
Implementation of Final Testing
Coinbase has begun the final testing phase for Bitcoin SegWit and will introduce support for it in the next few weeks in a bid to lower network congestion and skyrocketing fees.
Our engineering team has begun the final testing phase of SegWit for Bitcoin on Coinbase.
SegWit compatible Bitcoin sends/receives will be available for customers in the next few weeks.
We previously wrote about SegWit on our blog: https://t.co/3YPQPkYy4C
— Coinbase (@coinbase) February 5, 2018
Support will see customers start using SegWit compatible addresses which is the necessity to lowering fees and reducing congestion. SegWit was activated on the Bitcoin network through a soft fork in August last year. However, one must use a SegWit compatible address to take home the benefits.
Only about 15 percent of Bitcoin transactions currently employ SegWit according to Trezor hardware wallet manufacturer. Last month, the tally was 18 percent. The low figures are due to lack of support for SegWit by different large firms dealing with Bitcoin and related exchanges.
Congestion affects fees. At one time, the costs plummeted after Coinbase experienced an outage suggesting that the company could be highly responsible according to Sergej Kotliar, CEO of mobile top-up service Bitrefill.
— Sergej Kotliar (@ziggamon) January 12, 2018
A lead engineer and architect at multi-signature blockchain security service provider BitGo, Jameson Lopp also stated last month that it was one of the companies contributing to network congestion.
“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. It is from a popular services such as Blockchain, Coinbase, and Gemini who are using block space inefficiently.”
The company responded by saying that its top priorities included securing customer funds and maintaining platform stability at peak times.
“We store billions of dollars’ worth of bitcoin on behalf of customers and any change to our infrastructure is done with significant planning and consideration for the security and stability of our platform”.
However, more concerns about lack of support of SegWit included its complexities in implementation.