Binance, one of the globe'southward largest cryptocurrency exchange by volume, has incorporated Segregated Witness, or SegWit, support for Bitcoin (BTC) deposits.

The SegWit support was extended to deposits on Christmas Eve, Binance said in an official statement. The protocol upgrade was initially enabled but for withdrawals.

Effective immediately, Binance users can transfer funds to a SegWit (bech32) address past selecting the BTC (SegWit) network. Binance explained:

"Delight note SegWit should help reduce fees; still, if you lot incorrectly transport incompatible assets to the accost, your funds volition not exist recoverable and volition effect in permanent loss."

Implemented in 2017, SegWit is a Bitcoin protocol upgrade designed to help scale the network and fix associated bugs. SegWit is known for the way it updates information on the blockchain, namely, by segregating signatures from transaction data. This protocol upgrade allows more transactions to be stored in a single cake, thus increasing transaction capacity.

Data from transactionfee.info evidence that roughly two-thirds of Bitcoin payments currently use SegWit. Although Bitcoin has emerged as a budgetary instrument for storing value, it continues to face scalability limitations, which some argue has impeded adoption for everyday employ.

The Lightning Network has been offered as a viable layer two scaling solution for Bitcoin as a payment protocol. Unlike SegWit, which was a soft fork update to the Bitcoin protocol, the Lightning Network is an additional layer that could enable instant, lower-toll transactions.

Despite limited transaction capacity, Bitcoin remains the de facto leader of the digital currency market. Its authorisation over other crypto avails recently hit one-year highs. At the time of writing, Bitcoin'south dominance charge per unit was 68.vii%, according to CoinMarketCap.