Back in August 2017, Segregated Witness (SegWit) was implemented for bitcoin; a protocol that’s aimed at alleviating the problems of scalability and high transaction fees. Now, Xapo has integrated SegWit into its wallets and vaults in a bid to serve its retail clients as well as institutional investors who use its cold storage vaults better.
Another Significant Player Adopts Segwit
According to Yahoo Finance, the president of the Hong Kong-based Xapo, Ted Rogers has announced that the cryptocurrency wallet now supports SegWit. Xapo prides itself as the world’s most secure bitcoin wallet. It allows users buy bitcoins pay for goods and services and send money globally.
According to reports, Xapo has a network of underground bitcoin vaults on five continents including one in a decommissioned military bunker in Switzerland that holds approximately $10 billion worth of the world’s flagship cryptocurrency.
In January 2017, Xapo which reportedly holds about seven percent of the global bitcoin supply, was granted conditional approval by the Swiss Financial Market Supervisory Authority (FINMA) to do business in the region.
Just four years old, the company has grown to become an institutional big whale in the nascent world of blockchain finance.
Xapo Holds More Value than Many U.S. Banks
Xapo’s $10 billion bitcoin stash is larger than 5,670 banks in the United States and the firm also handles more deposits than most financial institutions in the world.
The Xapo journey started way back in 2011 when the CEO of Xapo, Wences Casares bought his first bitcoins but felt the methods of storing the coins at the time were not safe enough so he built a vault for his personal use and within a short while friends and even institutional investors started storing their cryptos in the vault.
“They’re the first folks who recognized custodial, and security functions would be key. He made the pitch in the morning and in the afternoon I called him with an offer,” said billionaire LinkedIn co-founder, Reid Hoffman, who pumped in over $20 million in Xapo in 2014.
With Xapo’s new support for SegWit, it has joined the growing list of wallets and exchanges such as Luno, Coinbase and a host of others that have integrated SegWit.
SegWit Adoptions Nears 40 Percent
The issue of scalability has been a hot topic in the world of cryptocurrencies. World number two cryptocurrency ether is also developing solutions like sharding and plasma in a bid to offer users faster transactions and meager fees while adding less burden on the blockchain.
Bitcoin’s Lightning Network protocol, another solution that is touted to solve the scaling issues entirely is also on its way to full use as quite a vast array of bitcoin supporters have been experimenting with the superfast scaling system.
Along with the blessing by Xapo, the Bitcoin ecosystem is increasingly utilizing the SegWit update; recent figures from transactionfee.info shows that adoption is nearing 40 percent of payments on a 7-day rolling average basis.