BitMEX Reissues Bitcoin Deposit Addresses to Reduce Withdrawal Fees

BitMEX has made a strategic choice to boost the utilization of Bitcoin block area and decrease withdrawal charges for its customers.

In a major replace, efficient November 1, 2023, BitMEX will difficulty new Bitcoin deposit addresses to all its prospects.

BitMEX Reissues Bitcoin Deposit Addresses

BitMEX has just lately unveiled a major replace aimed toward optimizing the usage of Bitcoin block area and decreasing withdrawal charges for its customers. In keeping with an October 30 announcement, BitMEX will reissue all buyer Bitcoin deposit addresses, transitioning to the extra environment friendly pay-to-witness publish key hash (P2WPKH) Bech32 format addresses.

The change eliminates the necessity for complicated multi-signature transactions, changing them with single on-chain signatures, leading to substantial block weight financial savings with out compromising safety.

The transition will happen in phases, with new customers receiving the up to date addresses from November 1, 2023, and current addresses being changed between November 1 and November 30, 2023. Customers are urged to cease utilizing outdated addresses, replace their handle books, and whitelist the brand new addresses to make sure a seamless transition.

A Shift from Multisignature to Bech32 Addresses

BitMEX’s choice to reissue Bitcoin deposit addresses comes as a response to the evolving panorama of blockchain know-how. The brand new addresses can be within the pay-to-witness publish key hash (P2WPKH) Bech32 format, generally known as “bc1 addresses.” This modification will see the removing of the historic “self-importance” handle prefix, together with “3BMEX” and “bc1qmex.”

BitMEX beforehand used deposit addresses based mostly on Bitcoin’s native on-chain 3 of 4 multisig system (P2WSH). This complicated course of required three signatures revealed to the blockchain for every spend from a deposit handle, even with the Segregated Witness (SegWit) witness low cost. In consequence, it consumed a major quantity of block area.

The brand new wallet addresses, however, would require solely a single on-chain signature (P2WPKH) for every fund switch. This modification is facilitated by a multi-party computation (MPC-CMP) utilizing a community of extremely safe and geographically distributed non-public keys.

Notably, this up to date signature scheme is already employed for BitMEX’s scorching withdrawal processing, making certain the transition doesn’t compromise the platform’s high-level pockets safety.

In the meantime, to boost safety, the BNB Chain has just lately unveiled a brand new safe multi-signature pockets answer referred to as BNB Protected, constructed on the Gnosis Protected protocol. It’s at present accessible on each the Binance Good Chain (BSC) and the opBNB networks.

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