SegWit Will Come to Coinbase by the End of February
Coinbase has announced that it will integrate SegWit by the end of February, which could well spell good news for crypto investors. According to Coinbase themselves, the upgrade should serve to reduce the fees that traders currently pay.
What’s the Big Deal?
SegWit stands for “Segregated Witness”. It is the process of separating (segregating) specific parts of transactions from Bitcoin processes, thus freeing up space for further transactions. This will result in quicker transactions and lower fees, which could save Bitcoin from being usurped by more flexible cryptocurrencies in the long run. Currently, the 1mb block size limit feels a little cumbersome when compared with other cryptocoins, but SegWit will effectively increase the limit to 4mb.
The move comes to a world that is simultaneously accepting and rejecting Bitcoin. On the one hand, more and more businesses are starting to accept payment in crypto, but on the other, governments and global financial regulators are moving in with great menace to impose regulations that will not leave the majority of investors happy.
SegWit has been implemented by a number of businesses, but Coinbase was the major coup for Bitcoin, being one of the world’s largest exchanges. In fact, a petition to integrate SegWit with Coinbase gathered well over 10,000 signatures in almost no time at all a while back, so those who had the idea will certainly feel like they have contributed to turning the pressure release valve on Bitcoin’s potential volatility.
Is it Just a Stop Gap?
To some though, this will feel like a temporary relief rather than a permanent measure. Not only are there concerns over the sustainability of such a large number of transactions, even with an upgraded block size limit, but there are other issuessuch as overuse of energy and outdated-ness compared with, say, the Ethereum blockchain, which have caused plenty of investors to abandon Bitcoin.
Is Bitcoin a relic? Let us know your thoughts.