May I ask how much lower the fees are when users withdraw using Bustadice's Segwit enabled address compared to a legacy address, if you have used it in the past.
Because from the feedback I had from Yolodice, they were saying that the "savings" they are having by using Segwit is only 30% and ethan_nx expressed this as "close to nothing".
Would you say the reduction in fees from using Segwit is close to nothing?
I am not saying ethan_nx is wrong or biased towards other solutions like accepting Bitcoin Cash, but I want to know each casino's experience.
That's a good question, I should let Daniel reply but I'll give it a shot since I'm online and like technical questions
Let's take an "stable" withdrawal, where I mean it doesn't consolidate or expand the site's unspent set. In a pre-segwit world that's going to be ~226 bytes. In a (wrapped) segwit world, it'll only be ~178 "virtual" bytes (it's in reality actually a bit bigger, but some of it has a 75% discount).
Which means the cost savings work out to ~20% for a withdrawal.
However, in reality casinos process a lot more deposits than withdrawals (say in the order of 2:1) which means casinos need to consolidate their unspent, either implicitly (letting coin selection grab it) or explicitly (doing it when it's cheap). Now lets say in a (wrapped) segwit world, we'll need ~10000 virtual bytes to consolidate 100 inputs, vs ~15000 with wrapped segwit (so a saving of about ~33%).
So basically your costs of sending money goes down ~20%, and consolidating ~33%. Poorly optimized services will consolidate at peak rates, so that 33% saving is going to be huge. More optimized ones (and with more float) will consolidate at more off peak times, making the saving not that significant in absolute terms.
So if I had to estimate, I'd say you can instantly save 25-30% by using wrapped segwit. Not earth-shattering, but pretty nice. Bustadice really goes a step further with queued withdrawals, input and output selection, and stuff like that. So they're going to save a lot more compared to a typical site but there's some pretty hard core stuff that, that would put it out of reach for most places (including large exchanges
).