Luno now supports sending to bech32 Bitcoin addresses 🚀
Bech32 is a new Bitcoin address format for P2WSH and P2WPKH native SegWit addresses specified by BIP 0173.
All bech32 addresses start with bc1 and consist only of lowercase letters. They are not case-sensitive, which means that they are more easily read by humans. This should make it easier to spot any errors in the address, lowering the chances of you accidentally sending funds to an incorrect address. Bech32 addresses also exist exclusively on the Bitcoin network. This removes the possibility of cross-chain mix-ups.
As bech32 addresses are part of the SegWit family, they also have the same benefits of other SegWit addresses. SegWit is an implemented soft fork change which removes signature data from Bitcoin transactions, therefore allowing you to fit more transactions into the same block. This enables faster processing of transactions per second and fixes transaction malleability, thereby helping to reduce fees per transaction.
The launch of this new support for bech32 addresses is part of our ongoing commitment to the development and scaling of Bitcoin and other cryptocurrencies, helping to bring it to the mass market and upgrading the entire world to a new, better financial system.
Note that we still support sending to normal P2SH and P2PKH addresses. These addresses start with a 3 or 1 respectively.
We're always working to add new features and coins to the Luno platform. Keep your eyes peeled to our social channels for further updates.