Binance, one of the leading crypto exchanges in terms of spot volumes and slowly crawling its way in the futures market is known for offering a wide range of trading services and features to its user base. Now the exchange might become among the selected few to integrate SegWit support for scaling bitcoin transactions.
Changpeng Zhao, the CEO of Binance who is quite active on Twitter and uses the platform to interact with users as well as announce major updates, hinted at possible SegWit integration in the near future. Binance would join the likes of Btfinex, Gemini, BitPay, and Bitmex being many others who have already integrated SegWit to their respective exchanges.
Soon soon. Thank you for your patience. 🙏
— CZ Binance (@cz_binance) December 18, 2020
SegWit as the name suggests stands for Segregated Witness where the protocol helps in scaling bitcoin transactions by freeing up space on the blocks. SegWit collects and pools similar signature data in bitcoin transactions that are responsible for taking up almost 65% of the space in transaction data. SegWit and Lightning network at one point was seen as key bitcoin scaling solutions, however, the practice never really took off beyond primary adoption.
Bitcoin Scaling Protocols Back in Demand?
The ongoing bitcoin bull run has led to many exchanges experiencing glitches and going down multiple times due to sudden price surges. The ongoing bullish rally from $19,000 to $23,000 led to many exchanges experiencing technical issues while trading and logging-in including Binance and Coinbase. While this was the first such reported malfunction on Binance during the peak bitcoin rally, Coinbase is a known defaulter, going down on numerous occasions over the past month, and whenever bitcoin price has seen a great rally.
The SegWit adoption by Binance could be a precautionary measure in the light of rising bitcoin prices, expecting significant volume on their exchange. Prior to Binance announcing SegWit support, Kraken another key crypto exchange has announced Lightning network integration earlier this week.