Vietnam’s oldest Bitcoin Exchange BitcoinVN proceeds in upgrading its infrastructure to provide for more efficient Blockspace usage when processing Bitcoin transactions and thereby lowering the transaction fees occured by its client base.
After rolling out support for Bech32 addresses for clients to receive their Bitcoin from BitcoinVN in late 2019, BitcoinVN is from now on exclusively supporting Bech32 addresses (“bc1…”) for Bitcoin users who are looking to sell their Bitcoin for the local currency VND.
“Blockspace scarcity in the Bitcoin blockchain will become a more pressing issue in the months and years to come. Using inefficient and outdated methods and software to craft one’s Bitcoin transaction will soon be punished harshly by either paying outrageously high fees for onchain transactions – or the transaction will simply not get confirmed. While in the past “it did not matter” to most users if a transaction cost was the equivalent of 0.5$ or 1.0$… when it’s very soon the equivalent of 50$ vs 100$ between SegWit and non-SegWit transactions, the cost of conducting Bitcoin on-chain transactions in a “wasteful manner” will start to be truly felt.
With the ongoing ‘bull run’ it is expected that over the course of 2021 using service providers who have not upgraded their infrastructure will start to become prohibitively expensive.
Adding Native SegWit support to our infrastructure to provide for more efficient Blockspace usage is therefore an economic imperative.” added BitcoinVN Co-Founder Dominik Weil.