The two businesses came together to collaborate on a new Bitcoin project. Binance, a well-known exchange globally, agreed to support Segwit addresses when transactions involve Bitcoin since the addresses grew exceptionally popular. Since the rapid growth of Bitcoin, many businesses work on different crypto-related projects to help each other grow within the space. Binance, a platform that can support the crypto’s deposits, allowed Segwit explore its options by giving it a new feature. Cryptocurrency is here to stay; that’s why some crypto-based platforms need to expand their options, some sources claim.
How the support will work
On December 24th, Binance launched the collaboration by supporting Segregated Witness addresses within its framework. Segwit is a protocol upgrade developed five years ago. It was created to help reduce the scalability problems of Bitcoin networks suffer. It equally removes signature data from Bitcoin transactions.
The renowned exchange previously allowed withdrawals from within the network but now supports deposits. The new addition makes a seamless transfer of Bitcoin to the address. Binance said Segwit should reduce its fees and explained that if an address that is not compatible with your address is paired for crypto transfer, the currency is permanently lost.
Segwit has a growing market, and some statistics show that almost all Bitcoin payments use it for their transactions. People are rapidly adopting the poplar protocol to ease the scalability problems of the network. The rise in Institutional investors in the crypto space, especially the Bitcoin market, made the industry grow in billions within just a year.
The investors’ increased support helped the currency beyond measures to establish its stance and expand its demand within the international community. Some problems that arise with digital assets are unpredictable pricing, which can be very volatile.
Segwit increases transactions with the new update
Bitcoin transfers from Binance can now hit the Binance pocket with the applauded support. The company explained that the addresses have tags such as ‘bc1’—the new update help reduces fee by increasing transactions within the network. Despite already having a supportive market, its partnership with a popular exchange like Binance could adopt a whole new level.
Earlier on, the business made it known that it stopped its South-Korea based platform due to some problems and would completely liquidate the firm by the end of January next year. Some regulations in some regions are also not promoting the use of crypto. So, it is unfortunate to see some areas not adopting cryptocurrency like the rest of the world, but it’s just a matter of time.
People started noticing some issues with the subsidiary when the exchange stopped transactions involving the platform suspected to be a malfunction of the matching engine. The trading features were not available for several hours, the users complained. It’s safe to note that Binance is still functioning well in many region.
The South Korean market might have to choose another exchange to trade crypto when the firm finally liquates. Also, exchanges in the US face the new proposed regulations that might affect their usual functioning.