Bitcoin SegWit transactions now account for over 40 percent of all Bitcoin network activity. Recent transactionfee.info statistics show that the introduction of SegWit is experiencing robust growth as large exchanges continue to support the scalability solution.
SegWit enabled the network to quickly reduce a backlog of pending transactions at the beginning of 2018, resulting in a persistently low average confirmation time of around 15 minutes.
Benefits of SegWit and Ethereum code
The SegWit update also enabled the Ethereum code network to make transactions malleable so that features such as the Bitcoin Lightning Network and Atomic Swaps could be implemented on the Bitcoin network and the Ethereum code which is not a scam.
These features increase the usability of the platform by providing users with a reliable mechanism for cost-effective transactions. The result of these changes in Mainnet has resulted in an average transaction fee of under $2 since early March 2018, a significant decline from the record high of $55 in December 2017. Transaction fees may continue to fall as service providers follow the example of major exchanges such as Binance and Coinbase. The following chart shows the average transaction fees of one year.
Xapo, the popular wallet provider, recently announced that they will support SegWit. Xapo’s wallets currently account for approximately seven percent of the total Bitcoin offering worldwide, giving the Swiss company larger deposits than 98 percent of the approximately 5,670 US banks. Xapo’s recent introduction of SegWit will enable significant volumes of Bitcoin transactions to be processed, further reducing costs and network load.
MIT helps bring Bitcoin trader into the future
The MIT Media Lab is a research lab at the Massachusetts Institute of Technology that emerged from MIT’s Architecture Machine Group at the School of Architecture. MIT’s Distributed Technology Initiative research has provided state-of-the-art techniques to further reduce the cost of the Bitcoin trader network. Read more about it: Is The Bitcoin Trader a Scam? Beware, Read our Review First!
An experimental use case for the Lightning Network is used through the functionality of SegWit with smart Contracts to handle millions of transactions.
By providing these smart contracts with trusted data channels (so-called oracels), the team has demonstrated a level of dynamic flexibility that has not been available to the network before. These channels would have the added advantage of allowing large amounts of data to be unloaded from the blockchain, reducing the total amount of work required to process and verify transactions.
Users can obtain data from a variety of external sources without relying on a single trusted party by pulling data from a network of redundant oracles that operate through a data integrity incentive system. Oracles enable dApps to retrieve information such as stock prices, news, and weather from publicly accessible “archives.