Crypto security startup BitGo’s latest technology – “predictive UTXO management” – sounds technical, but it’s got an end goal that everyone will understand: cutting crypto fees. Revealed exclusively to CoinDesk, BitGo is the first mainstream crypto company adopting a spin on “coin selection,” a scaling technology that’s been one of many touted as a way to ease the industry’s obsession with lowering fees since they spiked to over $20 a transaction in December.
Though fees have since fallen to less than $1, the incident had a huge psychological impact. As such, the industry jolted into action, looking into technologies that could help chip away at these fees.
As long-promised, coin selection more efficiently selects what coins go toward a particular transaction, and thus could have a big impact on users the next time fees go up (due to rising prices or increased use of the network). The idea has been around for a couple years but is just now starting to gain more widespread attention.
And with the news today, BitGo is opening up the technology to a large swath of the industry. Indeed, all BitGo clients who have upgraded to their latest software version will have access to this new tool, seeing fee reductions of up to 30 percent, according to the company.
“What we’re doing here is addressing high-traffic wallets. Some of our clients get lots of lots of deposits into exchanges. Read more from coindesk.com…
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