Kollet supports Segwit for Bitcoin

Photo by Dmitry Demidko on Unsplash

Segwit stands for “‍segregated witness”‍ and is a technique that reduces bitcoin transaction fees. Segwit moves all of the signature data in a bitcoin block to the end, lumping the signatures of all transactions together. This allows more transactions to fit in the same amount of space, while maintaining the security of the bitcoin blockchain.

Segwit uses different addresses from legacy bitcoin, and some third-party wallets or services may not support segwit addresses. Kollet supports both segwit and legacy addresses within the same wallet, and you can receive payments between them at anytime.

What does this mean for Kollet users ?

The most important benefit of more transactions per block is that the transaction cost of each transaction goes down compared to legacy transactions. In summary, you pay less network fees when sending and receiving funds

Despite the fact that SegWit transaction adoption in the Bitcoin network is increasing and reached an all-time high of more than 65% at the beginning of 2020, possible adaptations of the Bitcoin network take a much longer time than those in altcoin networks, owing to the sheer significance and size of Bitcoin — there is too much at stake. On another note, not everyone supports SegWit transactions, even now.

Kollet has joined a great number of exchanges and wallet providers to support Segwit and ensure users enjoy using cryptocurrencies without having to think about very high network fees.

From the 23rd of August 2021, all addresses generated by Kollet will be segwit (p2sh-segwit, not bech32) addresses. Segwit addresses start with “3” instead of the legacy “1”. Developers using the REST API can still generate addresses for legacy, ps2sh-segwit and bech32 altogether. Users with legacy addresses do not need to worry as they can still send and receive funds on the platform without any problem.

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