Bitstamp Exchange Adds Full Support for SegWit Bech32 Bitcoin Addresses
According to the announcement, all Bitstamp users can now withdraw Bitcoin to bech32 addresses and generate new deposit addresses in this format. Following this technical upgrade, Bitstamp has generated new Bitcoin deposit addresses for all its users.
Users can now choose between the old format or bech32 when depositing Bitcoin onto the exchange. However, the exchange urges all users to switch to bech32, since it provides efficiency boost to Bitcoin transactions.
The bech32 addresses have numerous technical benefits which include, saving space on the blockchain and also increasing efficiency. Another major advantage of using this address format is that it limits human error when writing addresses.
The bech32 addresses always begin with “bc1” on the Bitcoin mainnet and they aren’t case sensitive. This feature minimizes the chances of a user accidentally transferring coins to the wrong blockchain or making spelling mistakes when writing addresses.
SegWit bech32 also features automatic address format checking, ensuring that users do not send their coins to an invalid address.
Featured image courtesy of Shutterstock. Source: Cryptopress.