As of February 27, 2020, Bitstamp announces that they have upgraded to full native SegWit support on their exchange. This means that Bitstamp users will now be able to create wallet addresses to deposit cryptocurrencies using the new Bech32 address format. Although owning Bitcoin can be exciting, sending and receiving cryptocurrencies tends to be a bit more complicated.
This is due to the fact that users have to carefully keep track of their wallet addresses, and something as small as making a typo when entering a destination address could mean the loss of their precious digital currencies. In the past, Bitcoin addresses were up to at least 34 characters long, consisting of random digits and upper and lower case letters. But now, with the new Bech32 format, the destination addresses in Bitstamp will no longer be case-sensitive.
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The benefits of the new Bech32 addresses
In the end, the goal behind the new update is to make Bitcoin transactions more efficient, while reducing the risk of accidentally sending crypto to an invalid or wrong address. Bech32 is a new Bitcoin address format, which has been created specifically for use with SegWit technology.
We have always supported the development of new technologies that can help Bitcoin reach its full potential to store and transfer any amount of value anywhere in the world quickly and inexpensively..
Blog by Bitstamp
Bitcoin users will still be able to choose the old address format, however, the Bech32 format will help increase the efficiency of each transaction. Because it will reduce the amount of space needed on the blockchain. And on top of this, using the new format also reduces the risk of human error. Without exception, all Bech32 addresses will start with the symbols, “bc1” and will not be case-sensitive.
In other words, there will be less chance of someone making a spelling mistake. By typing an address or just accidentally sending your cryptocurrency to the wrong destination address. In addition, Bech32 addresses also feature automatic address format verification. Which helps to ensure that users send their cryptocurrency to a valid address.
