Bitfinex announced support for bitcoin deposit and withdrawals using P2SH Segregated Witness (SegWit) addresses. Segregated Witness is a Bitcoin protocol improvement that facilitates scaling. From this moment, Bitfinex users can benefit from lower BTC withdrawal fees (approximately 15%) and improved processing times on transactions across the Bitcoin network.
Bitfinex users can now use SegWit-enabled bitcoin wallets to send and receive BTC. To start using it, users will need to generate a new deposit address from their Bitcoin deposit page to receive a SegWit-enabled address, which will start with 3.
SegWit is the process of increasing block size limits by separating signature data from transactional data in bitcoin transactions. SegWit will also effectively fix transaction malleability. This process will also provide future for also Bitcoin development efforts, including the implementation of Lightning Network.
As a premier exchange, Bitfinex is committed to improving its market-leading offering for our loyal and discerning customers. SegWit provides not only an immediate benefit for users, but also a foundation for future Bitcoin development. By supporting SegWit addresses, Bitfinex is tackling three of the biggest crypto-enthusiast concerns: transaction fees, transaction speed, and total network capacity. We are delighted that through this implementation we can provide our customers with bitcoin withdrawal fees that are up to 20 percent lower, as well as faster-than-ever transaction speeds.
It is important to note that SegWit is implemented for Bitcoin only — not Bitcoin Cash.