Bitcoin Withdrawals Now Supported By BitMEX Exchange

One of the biggest platforms in the crypto space, BitMEX, has just revealed that its support for the Bech32 address format. So now, users on the platform will not be able to take out Bitcoin through the native SegWit format.

The platform wrote the following in a blog post:

“As of today, BitMEX is delighted to announce that customers can withdraw to all three address formats.”

BitMEX also went onto reveal that customers are still going to have to send BTC through the Pay to Script Hash (P2SH) format address. This is because of the feature of multi-signature wallet and that users are only able to facilitate Bitcoin withdrawals through Bech32 addresses. 

Optimisation

The blog post further went onto mention that the current upgrade is all in part of BitMEX’s endgame plan to optimise its Bitcoin wallet. This would help reduce their usage of block weight so that customers are charged with lower transaction fees. 

There are several advantages that this brings in but the main positive is of the dedicated support for Bech32 addresses which is the fact that users would no longer have to add 20 bytes of overhead while simultaneously transacting through a non-native wallet using SegWit, hence, generating savings in terms of transaction fees.

The platform further said:

“Since the savings are generated by the witness discount on the signature/scripts, the more inputs a transaction has, the higher the percentage savings. Therefore larger transactions, with more than one input, will typically experience higher savings.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!