Bitcoin Xapo Wallet Now Begins Applying SegWit Scaling Solutions, Ted Rogers as president of Xapo says, wallets and crypto are widely used currencies have revealed that the platform has enabled Segregated Witness (SegWit), a scaling solution developed by the Bitcoin Core development team.
SegWit and the Importance of Xapo
Earlier this month, Tom Metcalf of Bloomberg reported that Xapo's wallet housed in an underground bunker in Switzerland has overseen more than $ 10 billion of bitcoin, in an amount larger than 5,670 banks in the US. Xapo manages more deposits than 98 percent of US banks.
Ryan Radloff, co-founder of CoinShares, an investment company with more than $ 500 million bitcoin stored in Xapo's wallet, stated that most large-scale investors who do not hold or manage their private keys have bitcoins stored in Xapo's vault.
The billionaire investor and LinkedIn founder Reid Hoffman voiced similar sentiments with Radloff and stated that Xapo was the first and one of the few successful companies that have commercialized custodial and security functions in the cryptocurrency industry.
"They are the first people to acknowledge custodial and security functions will be key. He makes pitch in the morning and in the afternoon I call him with an offer, "said Hoffman, who invested more than $ 20 million in Xapo in 2014.
While Coinbase and Blockchain have a significant influence on consumer markets and individual investors, Xapo has dominance over the institutional market in the cryptocurrency sector, which directly deals with institutional investors and retail traders.
Large-scale investors who have funds in cryptocurrency stored in the Xapo safe do not tend to move a small amount of bitcoin on a regular basis. Since it takes about 24 hours for Xapo to transfer the bitcoins stored in the safe into the user's wallet and the process costs more than normal bitcoin transactions, investors prefer to move large amounts of bitcoin in and out of the Xapo safe.
By eliminating unnecessary transactional data and transferring additional information beyond transactional data, SegWit optimizes transactions and reduces the amount of costs that users need to pay to miners to have their transactions broadcast to the bitcoin blockchain network.
SegWit Xapo integration will allow large amounts of bitcoin to be processed in bitcoin blockchain networks as transactions that activate SegWit, drastically reducing costs and burdens on major blockchain networks.
Bitcoin Scalability
Ethereum and other smart contract-based blockchain networks required to process larger data sections than bitcoins are developing innovative solutions such as sharding and plasma that divide the blockchain network into pieces and allow more efficient methods of information processing.
The bitcoin blockchain network is currently experimenting with Lightning Network as a second-tier blockchain solution for processing smaller transactions in larger capacity and SegWit as a scale solution for the first layer or base layer.
The application of SegWit as a scale solution by widely used cryptocurrency platforms such as Xapo and Blockchain will allow SegWit to evolve into a technology that converts bitcoins from value stores into scalable currencies.