Segregated Witness (SegWit) Definition
Segregated Witness (SegWit) is a protocol upgrade which alters the way data is stored on the Bitcoin blockchain. By removing signature data from bitcoin transactions, SegWit reduces the size of transactions, enabling more to fit into each block and boosting the network’s capacity for processing transactions.
Segregated Witness (SegWit) Key Points
- SegWit is a protocol upgrade for the Bitcoin blockchain.
- It enhances the blockchain’s capacity by reducing the size of transactions.
- It accomplishes this by removing the signature data from bitcoin transactions.
- SegWit also fixes transaction malleability, a potential vulnerability in Bitcoin’s code.
What is Segregated Witness (SegWit)?
Originally proposed by Bitcoin Core developer Peter Wuille, SegWit is an upgrade to the Bitcoin protocol which segregates, or separates, signatures (witnesses) from transaction data. This segregation of data effectively reduces the size of transactions and allows more of them to fit into each block, thereby enhancing the network’s capacity.
Why was Segregated Witness (SegWit) created?
SegWit was created in response to the scalability issues faced by the Bitcoin network. With the increasing number of transactions, there was a need to increase the number of transactions that could fit into each blockchain block. By removing signature data and reducing the size of transactions, SegWit facilitates an increased volume of transactions.
How does Segregated Witness (SegWit) work?
When a Bitcoin transaction is made, certain data, called a witness, which verifies the transaction, is included. These witnesses can take up over 60% of a transaction’s size. In Segregated Witness, this witness data is separated from the main block of transaction data and added as a separate structure at the end. By doing so, the size of transactions is reduced, allowing more to fit into each block.
When was Segregated Witness (SegWit) implemented?
The inclusion of the SegWit upgrade in Bitcoin’s network was a heated topic of debate among the community, with arguments for and against its implementation. Eventually, SegWit was activated on the Bitcoin network in August 2017 as part of BIP 141.
Who benefits from Segregated Witness (SegWit)?
The primary beneficiaries of SegWit are those who use Bitcoin for transactions. With an increased volume of transactions possible within each block, users experience faster transaction times and lower fees. Additionally, SegWit’s fix for transaction malleability opens the door for future upgrades and improvements to the Bitcoin protocol.
