BitMEX Enhances Bitcoin Block Space Utilization and Reduces Withdrawal Fees
BitMEX has made a strategic decision to optimize the use of Bitcoin block space and minimize withdrawal fees for its users. In a significant update, effective November 1, 2023, BitMEX will issue new Bitcoin deposit addresses to all its customers.
BitMEX Reissues Bitcoin Deposit Addresses
In order to improve the efficiency of Bitcoin block space and reduce withdrawal fees, BitMEX has announced a major update. According to an announcement on October 30, BitMEX will reissue all customer Bitcoin deposit addresses. The new addresses will be in the pay-to-witness publish key hash (P2WPKH) Bech32 format, which eliminates the need for complex multi-signature transactions.
This change will result in substantial block weight savings without compromising security. The transition will take place in phases, with new users receiving the updated addresses from November 1, 2023, and existing addresses being replaced between November 1 and November 30, 2023. Users are advised to update their address books and whitelist the new addresses for a smooth transition.
A Shift from Multisignature to Bech32 Addresses
The decision to reissue Bitcoin deposit addresses is a response to the evolving landscape of blockchain technology. The new addresses will be in the more efficient pay-to-witness publish key hash (P2WPKH) Bech32 format.
Previously, BitMEX used deposit addresses based on Bitcoin’s native on-chain multisig system. This process required three signatures published to the blockchain for each spend from a deposit address, consuming a significant amount of block space. The new wallet addresses will only require a single on-chain signature for each fund transfer, resulting in greater efficiency.
This updated signature scheme is already used for BitMEX’s hot withdrawal processing, ensuring the platform’s high-level wallet security is not compromised.
Hot Take: BitMEX Optimizes Bitcoin Block Space and Reduces Withdrawal Fees
BitMEX’s decision to reissue Bitcoin deposit addresses and transition to a more efficient address format demonstrates their commitment to enhancing the utilization of Bitcoin block space and reducing withdrawal fees for users. By eliminating complex multi-signature transactions and implementing a more streamlined process, BitMEX is able to save block weight and improve overall efficiency.
This update aligns with the evolving landscape of blockchain technology and ensures that BitMEX remains at the forefront of innovation in the crypto industry. The phased transition period allows users to adapt to the new addresses seamlessly, further enhancing user experience. With this strategic move, BitMEX continues to prioritize user satisfaction while maintaining the highest level of wallet security.
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