The firm announced that it would soon issue Bech32 addresses for its new users. The firm also reported that it would migrate current users to the new addresses in various phases.
After five years of existence in the Bitcoin network of segregated witnesses (Segregated Witness or SegWit, for its acronym in English), the cryptocurrency exchange BitMex added support to BTC withdrawals using this format. This support will allow users to pay lower fees and save the deal 65% on block weight.
According to a statement on March 18, 2021, BitMex announced that it would allow its users to withdraw bitcoin with Bech32 addresses, which are the ones that natively support the segregated token.
The Company Explains its Vision in this Tweet:
We will soon issue Bech32 addresses to all new BitMex users and migrate current users to new addresses in the subsequent phases. We are excited about this because it will increase efficiency and lower withdrawal fees (on the Bitcoin network).
It is worth remembering that the exchange had already posted on its blog, on December 12, 2019, a press release announcing the enabling of support for shipments in Bech32 format. At that moment, BitMex mentioned that the Bitcoin network supports three address formats.
The first, the original address format, is the one that involves paying for the public key hash (P2PKH), whose addresses begin with the number 1.
The second format is the payment script (P2SH), allowing users to send bitcoin to a secured address through a script without knowing many details. This address is the type of address where BitMex users deposit their funds.
The third is the Bech32 format, also called the native SegWit format, which starts with a bc1 and permits users to take full advantage and benefit from segregated token scalability, higher efficiency, and lower fees.
Binance Also Supports SegWit Deposits for Bitcoin
In addition to BitMex, other exchanges, such as OKEx and Gemini, incorporated SegWit in 2019. The most recent case is that of Binance. Through a statement published on its official site on December 25, 2020, the company reported incorporating the protocol for BTC deposits (withdrawals were already under admission before). “By selecting the BTC (SegWit) network, users will be able to transfer funds to the SegWit (bech32) address,” the note says.
Binance said: “Please note that SegWit should help reduce fees. However, if you mistakenly send incompatible assets to this address, your funds will not be recoverable, and the result will be a permanent loss.”
What is SegWit, and how is its Adoption Process?
The protocol started its functions in the Bitcoin network in 2016. By 2021, almost five years have passed since this event. In this time, the protocol has gone a long way towards full acceptance, despite the advantages it offers.
According to analyst Willy Woo’s metrics, it has a 48% adoption rate. Although this option is functional since 2016, it is also essential to consider that it did not receive the approval of at least 95% of the network’s miners.
By: Jenson Nuñez
