Exchanges do not support Segway addresses; Could bitcoin be more scalable?
New research shows that some major digital currency exchanges, including Bainance, make little effort to get more users to use Bitcoin SegWit addresses. According to experts, if these exchanges have more support for these addresses, the scalability of the Bitcoin network will be improved and users will be less expensive than before.
To Report Kevin Telegraph, the soft fork segway was created at the same time as the Great Bitcoin War from 2015 to 2017. The war was essentially about resizing bitcoin blocks; But it raised much deeper issues and questions. Sagittarius has been relatively successful as an upgrade to the Bitcoin network during this time, but the problem is that exchanges such as Bainance and Gemini have not yet taken seriously the issue of using Sagittarius URLs for bitcoin transactions.
Segregated Witness is the phrase “Segregated Witness” and its launch dates back to 2017. This fork changed the structure of transactions so that digital signature data could be separated from transactions. To put it simply, Segway makes bitcoin safer, faster, and network scalable.
Most exchanges and investors quickly upgraded their infrastructure to use Sagittarius’s addresses, and in 2019 increased their share of related transactions to 50%. The problem, however, is that the world’s largest digital currency exchange, Bainance, does not support it enough and has stagnated Segway.
According to the analytical website Golsnood, the acceptance rate of Seaguette in Bainance exchange was only 10% until the end of 2021, until during this period Bainance decided to increase its acceptance speed. Although the acceptance rate of this exchange is currently around 50%, if we compare it with the 100% rate of Coinbase and FTX exchanges, we find that this figure is not very significant.
Overall, transactions with digital currency exchanges account for approximately 40% of the total bitcoin block space; But the problem is that a large part of this 40% is in the possession of Kevin Base and Bainance exchange offices. Their share is so large that last month alone, they used up 25 percent of the blockchain space created on the Bitcoin network. Bitcoin will not be able to reach its full scalability potential if exchanges such as Bainance or major operators such as Gemina do not fully support Segway addresses.
“Tomer Strolight, editor of the Swan Bitcoin website, said:
Because Segway (as well as Batching and Taproot) saves money, we will inevitably get to a point where the whole world can use them. So far, these upgrades have greatly reduced the congestion and costs of the Bitcoin network. Interestingly, however, their success suggests that we may have to wait for the costs of the Bitcoin network to become problematic again, so that those who are reluctant to accept them will be encouraged to fully adapt to them.
In his report, Golsnood used a more accurate index to measure the acceptance and use of Segway addresses. When we use this index to examine institutions such as exchange offices, we get a more accurate picture of the current situation.
In this report, Golsnood examines 18 large exchange offices and divides them into three groups of six. The first group of exchange offices fully support Segwit and their acceptance rate is more than 90%. On the other hand, the acceptance rate of Sagittarius in the second group of exchanges (including Bainance) is between 50 and 80%. Group 3 exchanges still use the old bitcoin addresses. It is worth noting that the old bitcoin addresses start with the number 1 and the sequoit addresses start with the number 3.
It is unlikely that the remaining exchanges will soon be able to upgrade to the latest bitcoin network upgrade, Teprot. As Sterolite has said, only a re-increase in costs can wake these exchanges from their slumber, and we will have to wait until then.