It’s good news for Bitcoin investors today as two of the largest exchanges – Coinbase and Bitfinex -are adopting a software called SegWit.
The move comes as a major boost as the two exchanges are responsible for the majority of transactions made on the cryptocurrency’s blockchain.
The high transaction fees and low speeds led many merchants to withdraw their support for the popular cryptocurrency.
The move is expected to lower transaction fees by up to 20 percent, and speed up trading across the network.
“The most noticeable changes in the short term should be more efficiency when transacting,” said Alex Sunnarborg, founding partner at crypto hedge fund Tetras Capital.
“SegWit adoption is undoubtedly positive for bitcoin as it greatly impacts transaction fees, speed, and future tech possibilities, all areas in which alternative crypto assets like Bitcoin Cash and Ethereum compete with and often criticize bitcoin on.”
The new implementations will be welcomed by Bitcoin users who saw the cryptocurrency’s fees rise well above $20 in recent months while confirmation times could take more than a day.