Bitstamp Exchange Now Fully Supports SegWit Bech32 Addresses
On the 27th of February 2020, Bitstamp announced adding full support for SegWit bech32 Bitcoin addresses. The announcement said that all Bitstamp users can now withdraw Bitcoin to bech32 addresses and develop new deposit addresses in this format. In this case, Bitstamp generated new Bitcoin deposit addresses for all its clients.
When depositing Bitcoin onto the exchange, Bitstamp users can now choose between the old format or the bech32. Nevertheless, the exchange prefers all users to switch to bech32, claiming that it provides an efficiency boost to Bitcoin transactions.
The Benefits of Bech32 Addresses
Saving space on the blockchain and enhancing efficiency are a few of the numerous benefits of adopting the bech32 addresses.
Another significant pro of using the bech32 addresses is that it limits human error when writing addresses. The bech32 addresses always begin with BCI on the Bitcoin mainnet. Therefore, they are not case sensitive, minimizing the case of a client transferring coins to the wrong blockchain or making spelling mistakes when writing addresses.
To ensure that users do not send their coins to an invalid address, SegWit bech32 offers automatic address format checking.