SegWit or the Segregated Witness got a new push recently with its adoption by Gemini cryptocurrency exchange that has become one of the biggest crypto exchanges to enable the native SegWit addresses, according to a blog post by Brian KimJohnson, one of Gemini’s key engineers. The exchange has decided to do it in spite of the fact that it requires some time to upgrade the individual wallets to support this technology.
What is SegWit?
The cost and efficiency of transactions over Bitcoin blockchains came under question with the increase in the number of users that in turn increased the time taken to perform each transaction on the system.
It was to tackle the scale problem of Bitcoins that the SegWit or Segregated Witness approach was introduced. This code can allow a parallel blockchain for carrying out those functions which are non-essential for the transaction. As a result, many users are increasingly adopting this approach.
Benefits of Gemini’s Decision
Gemini has chosen to go for this upgrade as the benefits of this change seem to outweigh the logistical difficulties. Apart from allowing faster Bitcoin transactions, SegWit also enables “lightning.” Lightning is a layer-two technology that allows almost seamless global transactions via Bitcoin. It is conceived to be one of the most exceptional upgrades for crypto transactions. This will allow the unleashing of the truly global nature of cryptocurrencies.
It is for this reason that Brian KimJohnson has spoken in favor of this decision by the exchange. In response to the growing network congestion and security concerns, the decision is in the interest of their customers, as per KimJohnson. He further stated that this is the most suitable time to make this upgrade as the crypto economy is looking to scale up from a mere financial asset with limited liquidity to a full-fledged financial tool, which he stated is the “future of money.”