SegWit Space, a company that monitors the crypto industry and its associated technologies, announced that the adoption rate of the Segregated Witness protocol for Bitcoin (BTC) transactions had surpassed 60%.
Segregated Witness, or better known in the industry as SegWit, was first proposed by Pieter Wuille back in 2015. It is a protocol upgrade that increases the block size limit on the Bitcoin Blockchain by removing signature data from BTC transactions. The process frees up space in the network, which means more transactions can be added to the Blockchain. However, this proposal sparked a big debate in the Bitcoin network, and it took nearly two years before a consensus within the community had been achieved. SegWit protocol went live in August 2017. However, the adoption of technology had been slow until 2019.
In the latest report, the monitoring company presented a chart that shows the upward journey of the SegWit protocol, particularly in the fourth quarter of 2019. From 40% last September, the figure jumped to 60% in just a month. As per SegWit.Space’s interpretation, two out of three BTC transactions are using the SegWit protocol.
However, while SegWit.Space has reported that the adoption rate of the technology currently sits at 66%; the data provided by other monitoring resources do not match up. Woobull and Transacationfee.info similarly reported that it is around 59%.
Regardless of the varying figures, industry experts noted that one thing remains clear. The trend for SegWit adoption is bullish, and it represents a significant achievement since its activation in 2017.
However, despite several benefits brought by SegWit, not all Bitcoin participants are keen to use it. Yes, it isn’t mandatory to adopt the technology; however, the primary reason why the protocol adoption is still incomplete is the different incentives between Bitcoin users in the community.
The latest company to adopt SegWit protocol is BitMEX, a crypto derivatives trading platform. According to experts, it is one of the reasons why the adoption rate of the protocol shot upward.
Meanwhile, the industry is still waiting for Binance to make its move. It’s no secret that Binance is considered as the largest crypto exchange company in the world in terms of volume. According to CEO of Binance, the company’s team of developers is already exploring the possibility of using the SegWit protocol.