New LocalBitcoins wallet addresses now compatible with Segwit

LocalBitcoins, a service that allows users to search for and connect with local sellers of Bitcoins, is now offering Segwit compatible wallet address. To activate this feature, users will only need to send one last non-segwit transaction to their current receiving address.

The system will generate a new address when the latest user’s address receives Bitcoins. The generated address will be compatible with Segwit. The system also creates a new address when a user sends Bitcoin to a receiving address.

This is according to an announcement made by the company on its Twitter page.

“The segwit address we give out is called a P2SH address (you can identify this type because it starts with the number 3). To these types of addresses, you can send from non-segwit addresses,” clarified the company.

Segwit will also help reduce network fees on the network — including sending and depositing fees — as it becomes more common, said the company.

Although it is free to register, buy and sell Bitcoins with the service, ads are charged 1 percent for a complete trade. It is also open to transact with wallets of other LocalBitcoins service users. However, transacting with different Bitcoin is charged. The fee varies based on the user’s current usage rate of the Bitcoin blockchain. It is adjusted based on network congestion so that transactions are confirmed quickly.

Users of invoicing services are also charged a fee of 0.5% when the invoice is paid.

Although Lightning network, a second layer built on top of Bitcoin, requires Segwit to work efficiently. Users of LocalBitcoins will need to use separate software to use the Lightning network.

With the service, users can post advertisements and state exchange rate and payment method for buying and selling the assets. The seller replies and agrees to meet the person and purchase with cash or online banking. The Bitcoins are placed in the web wallet, and users can pay directly.

Also read: Vitalik Buterin Exposes the Multi-Year Vision for Ethereum

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David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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