Segwit causes 50% drop in Bitcoin transaction fees

A bit of good news for Bitcoin users- amidst the price volatility and fluctuations, Bitcoin transaction fees are getting cheaper, and it's all because of Segregated Witness.

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The situation Bitcoin Core developers anticipated several months ago when they advocated upgrading Bitcoin's blockchain technology instead of dramatically increasing individual block sizes on the network, is happening.

Bitcoin developers and miners had been embroiled in a massive argument over how to make the crypto coin scale so it could be cheaper and easier to use all over the world. Both sides had met in the middle, compromising to SegWit2x, a software upgrade which has now locked onto the blockchain.

Nevertheless, some industry players (mostly miners), for some reasons, are still skeptical of SegWit and if it will actually make Bitcoin scale. So far, things are looking good for the developers. 

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SegWit to the rescue?

Over the past two weeks, there has been a drastic change to the Bitcoin network as we began to see the effects of SegWit. 

First of all, the network has become less congested. According to GreenAdress, a Bitcoin development team, the size of the Bitcoin mempool has fallen from 150 to 6 million bytes, which is quite significant. 

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Also, SegWit transactions are witnessing around a 30 - 50 percent reduction in their fees, which is a very welcomed development. However, less than 10 percent of all Bitcoin transactions are SegWit-enabled, as not all miners are mining SegWit blocks. This means that only a small portion of Bitcoin users are experiencing the lower transaction fees. 

If more miners mine SegWit blocks on the blockchain, more people will experience the lower transaction fees. This would be great- since Bitcoin developers believe the reduction in transaction fees can surpass 50 percent in the next few weeks.  

In order to enjoy lower transaction fees, you only need to either receive SegWit-enabled transactions or sign SegWit transactions through Ledger or Trezor, or other Bitcoin wallets that have completed full SegWit integration.

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SegWit: 2x or No 2x?

From the look of things SegWit could well be the solution to Bitcoin scaling, although most Bitcoin miners are yet to embrace it and we haven't seen it in action for an extended period of time. However, you can't deny the potential it has and its possibility of eventually making bitcoin scale.  

So, if the SegWit upgrade makes bitcoin scale, what will happen to the 2x agreement? Will SegWit2x be needed or implemented by November or not?

It would seem pointless to implement SegWit2x by November if SegWit alone makes bitcoin scale, especially as the SegWit upgrade somehow allows blocks bigger than the traditional 1MB to be mined on the blockchain.

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Maybe the community will just pick a date and announce it as the SegWit2x day without any specific changes made to the blockchain. And this would be a simple way to end the long-lasting feud between both parties.