U.S. markets closed

Bitstamp adds full support for SegWit bitcoin addresses

Yogita Khatri

Crypto exchange Bitstamp, recognized as one of the 10 exchanges with “real” trading volumes by Bitwise, has added full support for SegWit (bech32) bitcoin addresses.

The move will allow Bitstamp’s users to generate new bitcoin deposit addresses in bech32 format, as well as to withdraw bitcoin in such addresses.

Segregated Witness or SegWit technology is an optional protocol upgrade to blockchain networks, which help accommodate more transactions in one block (1MB size) and thereby help reduce fees per transaction.

“We encourage all our customers to switch to bech32, as it provides an efficiency boost to Bitcoin transactions,” said Bitstamp.  

The exchange added that the bech32 format also helps users to avoid errors when writing addresses as they always start with “bc1” on the Bitcoin mainnet and are not case sensitive. 

“Bech32 also features automatic address format checking, which ensures you aren’t sending your BTC to an invalid address,” Bitstamp added.

The exchange initially supported SegWit in 2017. At the time, it said: “All newly generated bitcoin addresses at Bitstamp have been Segwit compatible.”

Several exchanges currently support SegWit, including Bitfinex and Coinbase. Last year, Binance CEO Changpeng “CZ” Zhao also indicated that the exchange could add SegWit support by the end of Q1 2020.