We’re starting the new year with a new trick! Bitcoin SegWit and multiple ETH Accounts have been added to our app for users in the latest update. What it is and how to use it, we will now tell you.
Segregated Witness – better known as SegWit – appeared in 2017 thanks to a blockchain company – Blockstream. The developers proposed SegWit as a solution to eliminate flaws in the Bitcoin protocol. According to the developers, the main problem was the scalability of the bitcoin network and the plasticity of transactions.
Let’s immediately explain that
The scalability problem is a process when the demand for a cryptocurrency increases, which means that the number of transactions that are processed by miners increases. Naturally, with a large load, the commission’s cost increases, the duration of transaction processing increases, and the servers’ load increases. This is not beneficial for users (the transaction fee grows) and for companies, as the load on the servers increases.
The plasticity of transactions is a sophisticated way of saying that BTC can be stolen from users by changing small pieces of transaction information.
To solve the two problems, the developers proposed to separate (segregating) the main part of the transaction data from the part that authorizes the transaction (witness). This update allowed us to increase the security and speed of transactions and reduce the cost of commission. Because separating the two parts also reduces the amount of transaction data and, in this way, allows you to send more transactions at the same time.
What will be useful for Lumi users?
1. Transaction speed will increase
2. The cost of the commission will be reduced
3. Additional protection from fraud
How will the process of sending and receiving Bitcoin change?
The process of sending and receiving Bitcoin will remain the same. We expect that customers sending Bitcoins from Lumi will, on average, pay less commission when sending their transactions. Although many factors affect the network/how the miner commission is determined, this change will help reduce the commission required to determine your transaction’s priority. It is expected that total network throughput will improve, which will reduce the likelihood of delays.
It is important to remember the following: you should not send other cryptocurrency assets other than legacy Bitcoin to the SegWit address, including Bitcoin Cash. If you incorrectly send Bitcoin Cash (BCH) to a SegWit (BTC) address, your funds will not be recoverable. The changes introduced by SegWit are incompatible with Bitcoin Cash, and it is impossible to access any Bitcoin Cash that has been lost in this way. All digital assets sent to the wrong currency address will result in the permanent loss of those assets.
And the second update – multiple Ethereum Accounts
Previously, you could only have one account with an ETH wallet. Now you can create multiple accounts for different purposes. This update will help increase the privacy and anonymity of transactions. In structure, all of this now resembles, simply put, Bitcoin. Where each account has two chains and several address indexes in them. Now in ETH wallets, we have added the ability to create multiple accounts, in which you can already share your finances if necessary.
You can check out all the updates step by step:
· open the Lumi app
· go to the wallets tab
· click on “Add wallets”