SegWit transactions hit all time high! SegWit transactions hit all time high of 50.5%. Segregated Witness makes Bitcoin transactions cheaper and faster.
The opt-in transaction type was first introduced in August of 2017 after a soft-fork network update. The update allowed Bitcoin blockchain users to opt-in to have their transactions that are less data-intensive than the classical transaction format to be a bit cheaper and faster.
At present, the Bitcoin blockchain has a data limit cap of 1mb per block. This limit prevents more than 2,500 transactions being processed every 10 minutes on the network.
However, using SegWit, transactions could theoretically be pushed from 4 transactions per second to 16. With more than 50% of all transactions using SegWit, the network has, in theory, given itself a 2x capacity increase. This results in a cheaper and faster Bitcoin transaction – creating a boon for the Bitcoin network as a whole.
When SegWit was introduced, it was nothing more than a transaction standard – albeit one that was supported by major wallets like Trezor and Ledger. Adoption by cryptocurrency exchanges had been slower, however, due to the development and security testing necessary to ensure that funds remained safe for exchanges.
SegWit transactions took 14 months to hit a high of 48.5% of all Bitcoin Transactions. Since hitting the previous high of 48.5%, SegWit usage fluctuated between 40% – 48$ before finally breaking out over 50% this week. SegWit transactions also facilitate and make easier scaling technologies like the Lightning Network, another technology that has been steadily growing.
With other major blockchains reportedly running out of room like Ethereum, could this new capacity of Bitcoin bring people and products back to the King?
Let us know what you think on our Facebook page. We’re interested to see if you’ve been using SegWit and if you’ve been using Bitcoin more and more!
