Bitcoin transaction fees are at the lowest they have been in months, and this is all because of SegWit. This relatively new improvement to the Bitcoin network, aims to solve two major problems that are currently affecting Bitcoin at the moment, and these are the transaction fees and the scalability problems.
SegWit is not intrusive or destructive and is what is known as a soft fork. It decreased the byte size of virtual currency transactions, helping to decrease fees by a huge amount. This is all achieved at the same time as it increases the transaction capacity of the network. The Vice President of Coinbase, Dan Romero said;
“SegWit is an important step in scaling the Bitcoin network. We are continuing to invest in our Bitcoin infrastructure and we will be working on implementing additional Bitcoin scalability improvements like transaction batching and improved UTXO management.”
The large decrease in transaction fees is because of the increase in SegWit-integrated addresses. It is often as high as 30-40% off of the normal transaction fees, so it is very easy to see why over 30% of all Bitcoin transactions are being pushed using the SegWit protocol. This is a huge increase in just a month. Some of the largest cryptocurrency exchanges are also implementing into their exchange transaction services, which has led Bitfinex to drop Bitcoin withdrawal fees by a huge 25%.
Despite the huge volatility, and even the recent price wobble from Bitcoin, it is evident to see that it does have a promising future, particularly with the upcoming improvements that we are starting to see. We should be seeing their high costs and fees disappear, becoming a thing of the past, with the arrival of new technologies and changes to the Bitcoin blockchain, it is plain to see that big things are ahead of the number one cryptocurrency.