What is segregated witness (Segwit)
Segregated Witness (SegWit) is an update to the Bitcoin blockchain that separates witness data from the base block, aiming to scale the network and fix malleability bugs.
SegWit was proposed by developer Pieter Wuille in 2015 and activated in 2017, and it allows for more transactions to be accommodated in a block without altering the original block size of 1MB.
SegWit is a soft fork, meaning it is a backwards-compatible change that does not create a new blockchain.
Understanding SegWit
Segregated Witness, or SegWit, is a modification to the Bitcoin blockchain. It was proposed by developer Pieter Wuille in 2015 and activated in 2017.
The main function of SegWit is to separate the witness data from the base block, hence the name "Segregated Witness".
This separation aims to create more space in the block, potentially allowing more transactions to be accommodated without altering the original block size of 1MB.
The Purpose of SegWit
SegWit was developed to tackle two major problems in the Bitcoin network: transaction malleability and limited scalability.
Transaction malleability bugs meant that anyone could alter transaction data, posing a security risk. SegWit addressed this by separating the witness data from the main block data, effectively fixing this issue.
Additionally, Bitcoin's scalability was hindered by the small size of its blocks, which limited the number of transactions that could be processed in each block. SegWit resolved this by making more space available in each block for transactions, which could enhance the network’s capacity.
How SegWit Works
SegWit operates by segregating the witness data from the transaction data and storing it in a separate data structure. When a Bitcoin transaction is broadcasted, nodes that have upgraded to SegWit can verify the transaction without needing to download the witness data until it is needed later in the process.
This separation aims to increase the effective block size limit, potentially allowing more transactions to fit into a single block. This could lead to changes in transaction fees and the speed of transaction validation.
The Impact of SegWit
The implementation of SegWit has had an impact on the Bitcoin network. It has aimed to improve the scalability of the network, potentially allowing for more transactions to be processed in each block.
This could lead to changes in transaction times and transaction fees, impacting the overall user experience. By addressing the malleability bug, SegWit has contributed to the network's security, contributing to the network's robustness and reliability.
SegWit as a Soft Fork
SegWit is a soft fork, which means it is a backwards-compatible change that does not create a new blockchain. This is important as it aims to ensure that all previous transactions on the Bitcoin network remain valid, and users who have not upgraded to SegWit can still participate in the network.
This approach aimed to maintain the continuity of the Bitcoin network while allowing for changes and updates.
