Binance Rolled Out SegWit Facilitating Feature to Support Bitcoin Deposits Amid Adoption Growth

By Emily Rys | December 28, 2020

Binance – among global top-tier crypto exchange platforms by market caps – has reportedly finalized the integration for Segregated Witness (SegWit), in a bid to facilitate Bitcoin (BTC) deposits. 

Specifically, the SegWit facilitating feature was reportedly rolled out in an attempt to support deposits on Christmas Eve, as revealed by Binance. The protocol was reportedly initially designed with only supporting features for withdrawals. 

The new function, which will be made available instantly, will reportedly allow Binance users to carry out funds transfer to a SegWit (bech32) address, via choosing the BTC (SegWit) network.

“Please note SegWit should help reduce fees; however, if you incorrectly send incompatible assets to the address, your funds will not be recoverable and will result in permanent loss.”

With implementation completed 3 years ago, SegWit reportedly functions as a Bitcoin protocol upgrade, built with a goal to assist scaling for the network, as well as fixing associated bugs.

SegWit reportedly gained a reputation for how it updates data on the blockchain, nominally via segregation of signatures from transaction information. 

This protocol upgrade reportedly allows for a greater number of transactions kept in storage in an individual block, consequently bringing up transaction capacity.

Insights inferred from transactionfee.info reportedly revealed that around two-thirds of Bitcoin payments are employing SegWit at the moment. Despite Bitcoin having been making a reputation for itself as a monetary instrument for storing value, there is still an ongoing battle regarding scalability limitations, which is believed by many to be the factor preventing adoption for day-to-day use. 

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