BitMEX Now Allows Bitcoin Withdrawals to Bech32 (Native SegWit) Addresses

Siamak Masnavi

Crypto derivatives exchange BitMEX announced on Thursday (December 12) that it now allows its customers to withdraw Bitcoin from their accounts using all three Bitcoin address formats (i.e. P2PKH, P2SH, and Bech32).

In a blog post published earlier today, BitMEX first explained that Bitcoin uses three address formats:

  • Pay to Public Key Hash (P2PKH) — this was Bitcoin's original address format; addresses begin with '1', e.g. 17VZNX1SN5NtKa8UQFxwQbFeFc3iqRYhem
  • Pay to Script Hash (P2SH) — this format became available in April 2012; addresses begin with '3', e.g. 3EktnHQD7RiAE6uzMj2ZifT9YgRrkSgzQX
  • Bech32 (native SegWit) — this is the native SegWit address format; addresses begin with 'bc1', e.g. bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq

It then went on to say that although it is now possible to withdraw to addresses in any of these three formats, customers still need to make Bitcoin deposits using the "Pay to Script Hash" (P2SH) format due to their "multi-signature wallet solution."

In other words, the Bech32 address format—described in Bitcoin Improvement Proposal 173)—that BitMEX has implemented can only be used for receiving addresses when making Bitcoin withdrawals from BitMEX.

BitMEX then summarized the advantages of using the Bech32 address format:

  • "More efficient use of blockweight (and therefore lower fees)"
  • "Improved error detection"
  • "More efficient QR codes"

BitMEX says that the main benefit of Bech32 is that it can deliver reduced transaction fees when you spend bitcoin that was previously sent to a Bech32 address:

Therefore this upgrade will not directly result in fee savings when customers withdraw from BitMEX, however in the next transaction, when the bitcoin already withdrawn from BitMEX is spent again, our customers may benefit from lower transaction fees.

And then explain where the savings come from:

When spending from a non-native address using SegWit, one must add around 20 bytes of overhead. When using native SegWit-style addresses (Bech32), this overhead is no longer necessary. The absence of this overhead generates the savings.

BitMEX - Bech32 Savings Table.png

As for the future, BitMEX says that it next plans to upgrade its "current non-SegWit P2SH multi-signature wallet solution" by "enabling SegWit (non-native)".

Featured Image Credit: Photo via Pexels.com. Table Courtesy of BitMEX Research.

Crypto Market Update for 24 February 2020: BTC, ETH, ADA, and TRX

Siamak Masnavi

This article provides an overview of how Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and TRON (TRX) have been doing over the past 24-hour period, and covers recent news that might have affected their prices (or might do so in the future).

To give you a rough idea of how well the crypto markets are doing today, 18 out of the top 20 cryptoassets (by market cap) are currently in the red (against the dollar).

All market data used in this article was taken around 10:00 UTC on 24 February 2020 from CryptoCompare, which also provided the price charts shown in this article.

Bitcoin

BTC-USD 24 Hour Chart on 24 Feb 2020.png

BTC-USD is trading at $9,715. This means that the Bitcoin price has been under the $10K level since February 20. Still, Bitcoin has still managed to gain +37.60% against USD in the year-to-date (YTD) period.

As for why Bitcoin is having trouble breaking through the $10K level, one theory is that Bitcoin is currently being seen more as a "risk-on" rather a "risk-off" asset; another is that Bitcoin whales are manipulating the market.

Here is prominent crypto analyst/trader Josh Rager with some technical analysis of Bitcoin's latest price action:

Ethereum

ETH-USD 24 Hour Chart on 24 Feb 2020.png

ETH-USD is trading at $265.99. Although ETH-USD has dropped 0.92% in the past seven-day period, for the YTD period, it is up +103.37%.

Cardano

ADA-USD 24 Hour Chart on 24 Feb 2020.png

ADA-USD set a six-month high on February 14 when it hit $0.07083. Since then, it's been going downhill.

Although the 7-day and 10-day pictures look bad, Cardano's return-on-investment (ROI) figures (against USD) for the 30-day, YTD, and 90-day periods look quite decent, being +36.99%, +76.77%, and +60.44% respectively.

On February 21, IOHK tweeted that the Cardano network had successfully carried out a scheduled network upgrade (a hard fork) to bring in Ouroboros BFT (a new consensus mechanism):

 TRON

TRX-USD 24 Hour Chart on 24 Feb 2020.png

TRX-USD is trading at $0.0204, which means that TRON is currently the 16-th most valuable cryptoasset by reported market cap.

TRX-USD has dropped -6.35% in the past 7-day period, but so far in 2020, it is up +54.45%.

Earlier today, in an article for Coindesk, Alexander S. Blum, the Chief Operating Officer of crypto finance firm Two Prime, wrote:

"Viewed through the lens of traditional finance, TRON is acting pretty predictably. It is acquiring more market share through the acquisition of weakened competitors, like BitTorrent, and their networks while promoting their retail financial product. They’re performing a balancing act between being a financial product and a technical one...

"Justin is leading TRON as a for-profit business pretty well. Why does that irk many hardcore developers? For those in the Western world sticking up their noses at TRON, it’s worth reflecting on how deeply elitist it is to judge from a position of pure technical idealism...

"The emergence of TRON in highly competitive Asian markets is commendable. They are pioneering a new business model and creating wealth ex nihilo – out of thin air – because they focus on what works today. Their users share the company’s pragmatism. TRON, EOS and Ripple are pioneering community-centric financial products that offer exciting new models for wealth creation."

Featured Image by "AhmadArdity" via Pixabay.com