The Bitcoin transaction fee of 250 satoshis per byte is substantially high in comparison to the estimated fee before the activation of Segregated Witness(SegWit). Such high fees are shelling out an average of 1-5 dollars from each user for bringing upon a single transaction.
Segregated Witness, the scaling solution and transaction malleability of the Bitcoin Core development team was expected to usher in 75% optimisation to the Bitcoin blocksize. However SegWit has been at the receiving end of farfetched criticism from experts such as Jeff Garzik, a former Bitcoin Core contributor primarily for its high fee structure.
However the fact that users need to undergo the SegWit enabled transaction drill to enjoy the benefits of lower transaction fees in days to come should not be forgotten. At present, most user driven transactions are of normal category. For shifting to the SegWit plethora, users need to utilize SegWit integrated Bitcoin wallets or receive SegWit-enabled transactions.
In the last few days, Trezor and Ledger, two premier Bitcoin hardware wallets brought upon SegWit integration by allowing users to proceed with SegWit enabled transactions. The added security benefits of utilising a hardware wallet gets accentuated with SegWit implementation.
This surely will diminish the transaction fees and confirmation time in days to come following greater integration with leading Bitcoin wallets like Coinbase. As per Ledger development team, Bitcoin fees will reduce by 35% following full circle integration when SegWit splits up signatures in a different zone thus changing the method of computing transaction size.
In case you don’t know much about Segregated Witness, click here to read “What is Segwit?”
However it must be highlighted that contrary to widespread belief SegWit did not completely fail to bring down transaction fees. Eric Lombrozo, the CEO of Ciphrex and a Bitcoin Core contributor recently enumerated in an interview with CNN that with further integration of more wallets with the SegWit core, Bitcoin will be finally able to scale in a proportional manner thus bringing down the exorbitant fees. Until the SegWit transactions take over Bitcoin network; which surely is not a day’s job, normal Bitcoin transactions will have to bear the brunt of traditional rates.
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