Coinbase Announces Segwit Integration
US based world’s largest cryptocurrency wallet & exchange ‘Coinbase’ has announced that it is nearing the deployment of Segwit (Segregated Witness) on its network. Earlier in December 2017, Coinbase Vice President & General manager ‘Dan Romero’ committed on integrating the Bitcoin core development team’s transaction malleability fix and scaling Segwit within 2018. By integrating Segwit, Coinbase would be able to reduce the transaction size as a result more transactions can fit inside a block thereby lessening congestion on the bitcoin network, potentially lowering fees.
Segwit was activated in August 2017 & looked promising. However the company was criticized for lack of Segwit & transaction batching. According to statistics, bitcoin network is currently processing about 237,000 transactions per day and the size of its memory pool remains at 26 million. Moreover, with increase in number of Users technical infrastructure struggled to cope, leading to downtime and delays processing transactions which had also occurred during Bitcoin’s upshoot. Also, Coinbase customers had started a petition a month ago for the Segwit upgrade to become a priority for Coinbase. More than 12,000 signatures were accumulated for the petition.
While the announcement was made Romero said,
“In terms of our engineering priorities, securely storing customer funds remains our top priority. Our next priority is to ensure that our platform remains performant during periods of peak volume. Following security and performance, we are focused on adding new features for our customers. We store billions of dollars worth of bitcoin on behalf of customers and any change to our infrastructure is done with significant planning and consideration for the security and stability of our platform.”