Cryptocurrency news

BitMEX added support for the Bech32 address format for BTC output

BitMEX added support for the Bech32 address format for BTC output

BitMEX now allows its clients to withdraw BTC from their accounts using all three bitcoin address formats-P2PKH, P2SH, and Bech32.

In a blog post, BitMEX explained that Bitcoin uses three address formats: P2PKH (the original Bitcoin address format, addresses start with “1”), P2SH (the address format available since April 2012, addresses start with” 3″), and Bech32 (segwit’s own address format, addresses start with”bc1″).

The entry then States that although it is now possible to withdraw BTC to addresses in any of these three formats, customers still need to make deposits in BTC using the P2SH format due to the exchange’s “multi-signature wallet”solution. Therefore, the Bech32 address format can only be used to output BTC from BitMEX.

In a blog post, BitMEX summarized the advantages of Bech32 addresses: more efficient use of block weight (and, consequently, lower fees), improved error detection system, and more efficient QR codes. BitMEX notes:

“Thus, this innovation will not directly lead to lower fees when withdrawing BTC from BitMEX, but in the next transaction, when using bitcoin that has already been withdrawn from BitMEX, our customers can benefit from lower transaction fees.”

BitMEX says that in the future it plans to update its “current multi-signature wallet solution that does not support SegWit” and make it possible to transfer bitcoins from Bech32 addresses.

At the end of last month, the Bitfinex exchange also launched
support for SegWit addresses for bitcoin withdrawal.