The actual switch to Taproot may be complicated. Even though major crypto players like Binance (BNB) take time to integrate SegWit into all of their crypto operations, one can imagine the challenges of a fork – as soft as it is – with all the friction that accompanies it – Isn’t blockchain supposed to eliminate transaction friction?
Lower costs thanks to Segwit
According to a press release Binance, the exchange has integrated SegWit to deposit operations Bitcoin (BTC) since December 25, 2020. The protocol SegWit was initially only available for withdrawal transactions.
Users of Binance can now transfer funds to an address SegWit (bech 32) via the network BTC.
The press release explains that the use of SegWit can help reduce costs. If incompatible assets are sent to this type of address, the funds cannot be recovered and will be irretrievably lost.
Data from transactionfee.info indicate that 2/3 of payments Bitcoin use SegWit.
The obstacles do not spare the leaders
SegWit is an update of Bitcoin which aims to increase network scalability, improve signature verification and facilitate future protocol changes.
One of the main characteristics of SegWit is the way it updates data on the blockchain. SegWit allows you to split signatures and transaction data.
Scripts containing the signatures can be moved into a separate structure, allowing more transactions to be stored in a single block and increasing the processing capacity of the network.
Some analysts believe that the limits of Bitcoin in terms of scalability prevent its adoption for everyday use.
Lightning Network was proposed as a level 2 solution to scale the use of Bitcoin as a payment instrument.
Despite these obstacles to its adoption, Bitcoin remains the leader of the cryptocurrency market, with a dominance rate of 68.7% according to CoinMarketCap.
Is Bitcoin’s Fate Really To Become A Currency? Bitcoin is now considered a hedging asset against the inflation of fiats, isn’t that enough? With all the whales and especially the institutions devouring the BTC in circulation, will the dream of at least one satoshi in the hands of every person “of age” to have crypto remain a dream? Bitcoin updates aim to improve network performance. Can developers take care of Papa Nakamoto’s legacy, evolving it without distorting it?
Litecoin, welcome in the Silver Age