Menu IconA vertical stack of three evenly spaced horizontal lines. The company announced on Tuesday that it finished testing and will roll out updates throughout next week. Some believe Coinbase’s participation will bitcoin bitfinex the update into the mainstream.
6 billion cryptocurrency exchange, is preparing to support Segwit, or Segregated Witness, an update to bitcoin which many believe will enable the booming cryptocurrency to scale for broader use. It’s unclear what impact this update will have on customers of Coinbase, outside of the broader impact on the bitcoin network. We store billions of dollars worth of bitcoin on behalf of customers and any change to our infrastructure is done with significant planning and consideration for the security and stability of our platform,” wrote Dan Romero, general manager at Coinbase. It’s optional for exchanges to use the update. Until then though, bitcoin is being exchanged using two different but compatible sets of code.
Platforms with massive customer bases such as Coinbase and Bitfinex account for a large number of total transactions on the network. It’s taken them longer to get around to it than many other companies though, and given they are a major source of traffic on the bitcoin network, it was contributing to higher fees for everyone,” Mow said over email. Bitcoin — which is based on blockchain technology — is essentially software, so it can be edited and changed. But because it is open source and decentralized, changes to bitcoin’s code have to be approved of by the community at large.
Bitcoin cash was established on August 1 out of what is known as a hard fork. Blockchain forks are when one chain diverges to become two. A hard fork is a change that is so radical that it makes the new chain incompatible with the old chain. Soft forks change the code on the blockchain but remain compatible with the old chain. Updating bitcoin has been a major concern for people in the community as popularity of the cryptocurrency has outpaced its design.
The original bitcoin blockchain can only handle between two and seven transactions per second. 20,000 spiking the number of purchases around the world, the system became severely strained. Blocks are essentially new links in the chain. For changes to be made on the bitcoin blockchain, a new block has to be approved by a decentralized network of computers.