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SegWit: Luno’s New Software that Will Curb Bitcoin Transaction Fees

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Luno will be fully integrating SegWit into its exchange, which it says will lead to a significant decrease in bitcoin transaction fees.

SegWit, which stands for Segregated Witness, restructures bitcoin transactions by rendering them effectively smaller, meaning that more transactions can ‘fit’ inside a block. By improving efficiency, bitcoin transactions will now be faster and cheaper than at present.

Heralding the step as a watershed moment, the Luno blog post said:

“We’re on a journey to upgrade the world to a better financial system and this is one more milestone on the way there”.

When introduced on bitcoin send transactions in December 2017, it allowed Luno to reduce network fees by over 25%. Previously, bitcoin transactions could only take place if the reciever wallet was a non-SegWit or “legacy” wallet.

The announcement means that users can now set up Segwit wallets and transfer their fees from their old ones. Luno says there will be a further reduction in fees as as more users adopt Segwit in the coming weeks and months.

The exchange said it had planned to launch SegWit much sooner but a surge of new customers over the past two months meant they had been forced to prioritise resources onto site reliability and faster response times.

Luno, which currently has 1.5m users in 40 countries, has a strong following in emerging markets in Asia and in Africa, which has seen rapid  digital technological developments in the past year.

The CEO and founder, Marcus Swanepoel told CNN on Wednesday he had a goal for 1bn customers by 2025. The company is growing aggressively, with a planned expansion from 70 to 300 employees after the next six months.

The company’s team is made up of experts with tech and financial backgrounds. Founded in South Africa in 2013, Luno moved to Singapore to concentrate on the South-East Asian markets. A former investment banker, Swanepoel moved away from developing a system based around bankers to one around individual users.

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1 Comment

1 Comment

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  1. Mr Stuart wiltshire

    February 15, 2018 at 4:07 PM

    Brill news anything that can make bitcoin stronger and grow the ecosystem is welcome news.

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