After months of prevarication, Coinbase has announced that it will add Segwit support to its bitcoin wallets. The much anticipated and long overdue move will go some way towards reducing transaction fees for users of Coinbase and GDAX, assuming it follows suit. Coinbase has come in for repeated criticism over the inefficient way it handles bitcoin transactions, costing itself, and ultimately its users, unnecessary fees. Due to the dominance of Coinbase, it is hoped that Segwit activation will help achieve the tipping point required for the technology become the default setting throughout the industry.
In a tweet on Monday, Coinbase issued the news their customers have been waiting months to hear: “Our engineering team has begun the final testing phase of SegWit for Bitcoin on Coinbase. SegWit compatible Bitcoin sends/receives will be available for customers in the next few weeks.”
By any reckoning, Coinbase has taken its sweet time over introducing Segwit compatibility to its bitcoin wallets. The scaling technology helps to reduce the median size of each bitcoin transaction, thereby enabling more data to be squeezed into each block. With bitcoin transactions priced per byte, smaller transactions means lower fees. Despite Segwit being backwards compatible, and thus not the riskiest of code changes to implement, Coinbase has been dragging its heels for months.
Source: Bitcoin News