Luno integrates SegWit to reduce Bitcoin send, receive fees

Luno integrates SegWit to reduce Bitcoin send, receive fees

One of the largest Bitcoin exchange in Africa and Nigeria, Luno, said it has integrated SegWit on Bitcoin send and receive transactions.

Luno said in an official statement to its traders and customers that importance of the SegWit is that certain information is restructured in Bitcoin transactions, rendering them effectively smaller, which means more transactions can now fit into a block.

“This, in turn, should help make Bitcoin transactions faster and cheaper than what they currently are.” the company said.

By implementing SegWit internally, Luno has managed to reduce the send fees paid by customers by over 25% already. As customers start switching over to new SegWit addresses, this will translate into a further reduction in sending fees in the coming weeks and months.

Note that Bitcoin network fees fluctuate, based on blockchain congestion, so comparing fees over different time periods isn’t always straightforward.

Until recently, you could only receive Bitcoin with Luno in a non-SegWit Bitcoin wallet address (known as a legacy wallet address).

From today, you can also receive Bitcoin in your new SegWit Bitcoin wallet address on Luno. Note that the receive fee, explained here, will remain in place and that you can also send Bitcoin instantly and free of charge to anyone, by using their email address or mobile number.