• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Breaking News: Crypto Exchange Binance To Launch Prepaid Card In This South American Country
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Crypto Exchange Binance To Launch Prepaid Card In This South American Country
bitmex liquid sidechain bitcoin fees segwit
Advertisement

BitMEX Set to Reduce Bitcoin Fees With Liquid Sidechain and SegWit

Anja van Oosterhout by Anja van Oosterhout
4 years ago
in News, Bitcoin, Bitcoin Businesses, Bitcoin Exchange, Bitcoin Technology, News teaser
0
Advertisement

Cryptocurrency trading platform BitMEX has hinted it will begin using Blockstream’s Liquid sidechain technology to reduce its impact on the Bitcoin mempool.


Bitrefill: BitMEX Should Reduce Fee Impact

As part of a social media discussion started by Bitrefill CEO Sergey Kotliar over how major exchanges create higher fees for Bitcoin users, staff said developers were “testing” solutions.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.

A huge volume platform, BitMEX has often seen controversy arise from its settlement activities due to the number of transactions it generates from bitcoin withdrawals and other processes.

bitcoin fees

The more transactions there are – especially if a large number are released onto the network at once – the more quickly transaction fees rise. As such, ‘spikes’ in the average fee rate for Bitcoin can cause problems for all those sending transactions for many hours afterwards.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Some major exchanges have already taken steps to reduce the number of outputs they generate and hence contribute less to the size of the mempool.

In particular, Segregated Witness (SegWit) technology saw good uptake through early 2018, with BitMEX now confirming it was seeking to implement it. It would also ‘batch’ transactions to create less work for the network, while suggesting off-chain settlements could also appear.

“We have SegWit in testing but it is bundled with some other backend upgrades to systems that will allow us to monitor many more addresses and rotate them more freely,” staff wrote.

It is our intention instead to reduce the space we occupy using SegWit & batching, and eliminate the need for some types of withdrawals entirely using Liquid.

Liquid Sidechain To the Rescue?

As Bitcoinist reported, the Liquid sidechain forms a separate network ‘pegged’ to Bitcoin, one use of which is to allow exchange transactions to settle in an essentially predefined period.

Explaining why progress had hitherto been slow on a solution, BitMEX said its internal protocols had required a more mempool-intensive approach thus far.

“There can only be one batch release, because we (still) manually review withdrawals and process them by hand,” it added on the topic of transaction batching.

It is infeasible to do this multiple times a day. and artificially delaying the release of withdrawals would hamper the user experience.

Nonetheless, Kotliar noted the impact of a technical issue from May 30, which saw a giant block of BitMEX transactions instantly push up fees for multiple hours.

“Just batching alone would have reduced this by 90% and barely caused a blip on the chart,” he argued.

Within the industry, major US platform Coinbase and wallet provider Blockchain.com continue to draw the ire of users, Coinbase due to a lack of progress in adopting batching and Blockchain for its refusal to implement SegWit compatibility.

Due to most Bitcoiners understanding the asset better now than during the December 2017 fees and price spike, Kotliar added, it was likely future such surges in interest would be better managed overall.

As Bitcoinist noted, Bitcoin fees remain broadly low despite the current price bull run.

What do you think about BitMEX’s plans to reduce mempool load? Let us know in the comments below!


Images via Shutterstock

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Anja van Oosterhout

Anja van Oosterhout

Related Posts

Bitcoin

Bitcoin Bearish Signal: Aged Supply Flows Into Binance

5 hours ago
Bitcoin this week

Bitcoin And Crypto This Week: Here’s What Will Be Important

8 hours ago
Bitcoin price

Bitcoin Price Nears $24,000 Mark – Can Bulls Push BTC To $25K This February?

12 hours ago
50% of Bitcoin hashrate Controlled by Two Mining Pools

Data Shows 50% Of Bitcoin Hashrate Controlled By Two Mining Pools

1 day ago
Institutional Bitcoin Buying Is a Positive Sign, Suggests Matrixport

Institutional Bitcoin Buying Is A Positive Sign, Suggests Matrixport

2 days ago
Bitcoin BTC

Inflation May Be In A Lull, What Does That Mean For Bitcoin?

3 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • Unbanked and Mastercard Team Up to Accelerate Crypto Card...

    10 mins ago
  • Binance Coin (BNB) Trading Volume Pumps By $7 Million While...

    9 hours ago
  • Polkadot (DOT) sees 5% Growth, why Cardano (ADA) and...

    10 hours ago
  • More than a trillion dollars moved in Litecoin (LTC)...

    10 hours ago
  • Moralis has revealed the integration of Web3 API with Aptos...

    11 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Bet & win BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.