Crypto exchange BitMEX now enables support for native Segwit (Bech32) addresses for Bitcoin withdrawals to let users spend less on transaction charges while subsidizing a less inflated Bitcoin blockchain, effective immediately.
SegWit is an optimal procedure update that has been implemented in 2017. It has an enhanced maximum block size perimeter which aids in accommodating additional transactions in one block (1MB) and thus lowering fees while continually protecting from malleability.
As per the news announced on Thursday, BTC networks now wires three address layouts. The first one is the original format P2PKH or pay to public key hash beginning in a 1. P2SH, the second one that starts with a 3 is the pay to script hash that permits users to send Bitcoin to a secured address such as a multi-signature slip. BitMEX’s consumers mainly deposit their finances in this type of wallet.
The last one is the Bech32 format which is SegWit, and it grants users full benefit of separated witness scalability, higher efficacy and lesser charges. Although this upgrade does not directly allow users to save fees on their first transaction, they can still save on their next purchase once the Bitcoin previously acquired from BitMEX is consumed again. Overall, dealings with SegWit saves roughly 37% compared to the customary transaction and 17% from SegWit trades that are non-native.
Looking forward, BitMEX is planning to facilitate non-native Segwit support to its P2SH wallet. They are expecting SegWit to result in around 25% to 40% blockweight savings or even higher as they claim that this update is far better than a standard non-BitMEX transactions. They believe that by adopting SegWit, BitMEX would enjoy nearly 65% of blockweight saving.