From now on, all Bitcoin transactions sent from Segwit wallets to Changelly will have a lower network fee. How does it work and why is it so vital for the community and Bitcoin users? Explained.
Bitcoin transaction fees change from time to time. Depending on the blockchain load and transaction size, the fee may be rather high – up to 20-50$. Changelly sends Bitcoin to your wallet with a flat fee of 0.00085 BTC. While sending Bitcoin to Changelly for exchange, you can usually set the fee in your wallet app. In case the fee is lower than in other current transactions, it may take a very long time to get confirmation. The higher the fee, the faster the exchange process. In some cases, the fee takes its toll by eating up a significant amount from your savings. However, we are concerned about such an issue taking place pretty often as the network fees have a huge impact on customer experience. There is a solution we want to support in order to make the fees of transactions passing through Changelly much lower. It’s called SegWit.
What is SegWit?
SegWit is a soft fork blockchain update activated on Aug 23. It allows rearranging of information in a block. Thus, the block size remains the same but contains more information than ever. Apart from that, SegWit is a breeding ground for other improvements for the blockchain scalability and speed. This measure makes transaction processing more cost-effective and significantly reduces mining power. As a result, the network fees are lower, and customers are happier!
By the time of writing, around 480 thousand transactions are passing in SegWith. It is already 5% of all bitcoin transactions, and the figure keeps growing!
What is SegWit2x?
SegWit2x stands for a more profound approach to the evolution of blockchain. It consists of two steps: SegWit implementation and increasing of a block size up to 2 megabytes block. Segwit2x inevitably leads to Bitcoin hard fork, a mandatory update incompatible with the current blockchain version. The 2x is scheduled to lock in only three months later, after SegWit activation. In some way, the hard fork is a healthy measure, but, if not entirely supported, it may create several rival Bitcoin blockchains, like Bitcoin Cash.
Who supports SegWit2x?
According to the Bitcoin Scaling Agreement, from May 25, SegWit2x will be supported by over 50 tech companies, including:
As for Changelly, we opt for the Bitcoin community’s decision to activate SegWit alone.
“Changelly fully supports the community’s choice for SegWit. The 2x possible hard fork may split the bitcoin again. Even though it seems to be profitable for exchange business, it leads to controversies that could hinder mass adoption of Bitcoin. The SegWit soft fork is enhancing the blockchain scalability and reducing the network fees. The more services support SegWit, the less the hard fork is probable.”
Konstantin Gladych, CEO at Changelly
How Segwit works on Changelly?
Currently, Changelly supports only input SegWit transactions. If you are going to send BTC to Changelly from your SegWit wallet, the network fee will decrease up to 50 %. In the nearest future, the option will be available for output SegWit transactions as well.
If you have any questions about the forthcoming upgrade or your transactions on Changelly, feel free to ask our support ninjas at firstname.lastname@example.org
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