The Winklevoss twins’ cryptocurrency exchange Gemini has confirmed full integration of Segregated Witness (SegWit) addresses to its wallet infrastructure. SegWit is the process by which the block size limit on a blockchain is increased by removing signature data from Bitcoin transactions. When parts of a transaction are removed space is freed up to allow more transactions to be added to the chain, paving the way for scaling improvements.
In a recent Medium article, Gemini Software Engineer, Brian KimJohnson said that the decisions about SegWit and batching “were not made lightly”. He added: “Our team views SegWit as a positive step forward for crypto and the broader future of money”.
A number of cryptocurrency companies have adopted SegWit in one form or another, but Gemini is the largest exchange to support native SegWit addresses.
Gemini think that with SegWit’s use, support and adoption will grow and it will help reduce fees, wait times, and network congestion. “SegWit transactions lay the groundwork for more advanced technologies; of which the Lightning network is the most well known,” says KimJohnson.
Gemini Head of Communications, Carolyn Vadino has been quoted as saying that the choice was based on a number of factors, including block space savings and safety concerns. “As SegWit’s use, support, and adoption grows, it will help reduce fees, wait times, and network congestion,” she said.
Gemini Launching SegWit Is The Right Decision At The Right Time
KimJohnson ended his article with a plea to all Gemini customers to adopt SegWit addresses.
“We believe SegWit will become the standard. And in doing so, will create extensive benefits for all participants on the Bitcoin network,” he writes. “Given the level of community adoption and ecosystem support , we now recommend that all Gemini customers move to using SegWit addresses”.
However, he does admit there may be teething problems. “We think it’s the right time to make this change, though there will still be some growing pains. Notably, while some block explorers are capable of tracking native SegWit addresses, the support varies widely from one solution to another”.
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