Cryptocurrency exchange Gemini, announced that they were all set to upgrade their wallet with Segregated Witness (also known as SegWit) recently.
Announcing the development, Brian KimJohnson, a software engineer at Gemini said in a blogpost, “As part of the upgrades this year, we introduced support for Segregated Witness (SegWit) addresses and transaction batching. As our customers may have noticed this means that SegWit addresses — which begin with bc1 — can now be used for Bitcoin deposits and withdrawals. Both of these improvements required end-to-end integration through our online and offline signing systems (along with many other efforts).”
For those who are not familiar with SegWit, it basically stores the digital signatures away from the transaction data. Minus the signatures, Bitcoin transactions weigh around 30–40 percent less, thus taking up less “block space” on the network and which in turn reduces the transaction fee.
Explaining further, Gemini head of communications Carolyn Vadino told news portal CoinDesk, “Our choice to use native SegWit addresses was based on many factors including block space savings as well as safety concerns. As SegWit’s use, support, and adoption grows, it will help reduce fees, wait times, and network congestion.” Vadino further said, “SegWit transactions also lay the groundwork for more advanced technologies; of which the lightning network is the most well known.”
KimJohnson further specified that Segwit transactions are only possible on Bitcoin blockchain and not on other cryptocurrencies. He said, “Some other Bitcoin exchanges and custodians have offered partial SegWit support (withdrawals and legacy P2SH-style addresses) since early 2018, but Gemini is the first major exchange to launch full support of SegWit, complete with native SegWit deposit addresses.”
Recently, Gemini was in the news when Cameron Winklevoss, one of the co-founders of cryptocurrency exchange, justified the reason why the company had recently launched a slogan reading “Crypto Needs Regulation.”
He had said, “Some have wondered why @Gemini believes the Revolution Needs Rules. Answer: Crypto doesn’t need rules, but the companies built on top of it do. See excerpt from court-appointed monitor’s (Ernst & Young) third report filed in Nova Scotia Supreme Court re: QuadrigaCX matter.”
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