{"id":5214,"date":"2018-04-24T00:00:00","date_gmt":"2018-04-24T00:00:00","guid":{"rendered":"https:\/\/crypto-economy.com\/2018\/04\/24\/bitcoins-high-transaction-fees-may-have-been-solved-with-segwit-adoption\/"},"modified":"2018-04-24T00:00:00","modified_gmt":"2018-04-24T00:00:00","slug":"bitcoins-high-transaction-fees-may-have-been-solved-with-segwit-adoption","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/bitcoins-high-transaction-fees-may-have-been-solved-with-segwit-adoption\/","title":{"rendered":"Bitcoin\u2019s High Transaction Fees May Have Been Solved With Segwit Adoption"},"content":{"rendered":"
Months after some exchanges adopted the SegWit protocol<\/a><\/strong>, it has been noticed that BTC transaction fees have stabilized at reasonable level. Exchanges such as Bitfinex<\/a><\/strong> and GDAX<\/a><\/strong> had in February announced the adoption of the SegWit scaling solution with Bitfinex making known their policy on February 20. GDAX announced a phased transition of their infrastructure from legacy Bitcoin on February 23.<\/p>\n The exchanges adoption of the SegWit came after a lot of demand from the community, especially during the spike in Bitcoin prices last year when it cost tens of dollars in fees to send Bitcoin. At some points, transactions were taking days to be confirmed discouraging the use of Bitcoin as a currency. The community interest seems to be at the center of the migration by the exchanges.<\/p>\n Announcing the migration, Bitfinex CTO, Paolo Ardino<\/strong> said that the exchange made the decision to adopt the Segregated Witness because of its potentials to lower withdrawal fees and reduce transaction time within the Bitcoin network. In a February 20 blog post, the company announced,<\/p>\n \u201cAs a premier exchange, Bitfinex is committed to improving its market-leading offering for our loyal and discerning customers. SegWit provides not only an immediate benefit for users, but also a foundation for future Bitcoin development.\u201d<\/em><\/strong><\/p>\n Mr Ardino added that the essence of the support was to address the main concerns of enthusiasts which are quicker transaction time, lower transaction fees and larger network capacity. He expressed delight at the SegWit adoption saying that users of the platform will have access to reduced withdrawal fees of up to 20 percent. Bitfinex users have been issued with the SegWit compatible wallets.<\/p>\n <\/p>\n GDAX made similar assertions through their website when Alex Sieke posted that all transaction to and from the exchange now go through SegWit enabled addresses<\/strong>. These exchanges now make smaller sized transactions leading to cheaper \u00a0fees.<\/p>\n