Cryptocurrency payment service BitPay BitPay has finally added support for updates to the bitcoin Protocol Segregated Witness (SegWit). The company announced in a blog post.
“Support SegWit is currently an additional option for bitcoin wallets in the app BitPay. Later this year, a phased deployment plan SegWit will be used by default in all bitcoin wallets,” reads the blog.
Three years ago, the company opposed the updates in favor of alternative solutions called SegWit2x.
BitPay processes about $1 billion a year. In April 2020, the company has processed 100 718 payment, 91,93% were in a bitcoin transaction.
Softpark SegWit was first proposed in 2015, a Bitcoin Core developer Peter Wolle. SegWit frees up space in the block without increasing its size, and also eliminates the problem of “plasticity transaction”, which is a necessary condition for the development of a Lightning Network.
At that time together with BitPay update SegWit2x supported many bitcoin companies and mining pools, including Bitmain, Digital Currency Group and Coinbase. SegWit2x activated SegWit with simultaneously increasing the bitcoin block size from 1 to 2 MB.
However SegWit2x failed after August 2017, the network has been deployed activated users softpark (User Activated Soft Fork, USAF) SegWit. As of the end of June 2020 63% of bitcoin transactions used SegWit.
Shawn Rolland, a product Director at BitPay, in comments to CoinDesk, said that now “a good time” for this update.