Segregated Witness (SegWit) Key Points
- Segregated Witness (SegWit) is a protocol upgrade that changes the way data is stored.
- It was implemented to solve the issue of transaction malleability and to increase block size in the Bitcoin network.
- SegWit separates, or segregates, the transaction signatures (the “witness” data) from the rest of the transaction data.
- By doing so, it allows for more transactions to fit within a block, effectively increasing the block size and transaction speed.
- SegWit is backwards compatible, meaning nodes that have not upgraded to SegWit can still operate and validate transactions on the network.
Segregated Witness (SegWit) Definition
Segregated Witness, commonly known as SegWit, is a protocol upgrade implemented on the Bitcoin network that modifies the way data is stored. It was designed to resolve the issue of transaction malleability and improve scalability by increasing the block size limit.
What is Segregated Witness (SegWit)?
Segregated Witness, or SegWit, is an implemented soft fork change in the transaction format of Bitcoin.
It was designed to help increase the block size limit on a blockchain by removing signature data from Bitcoin transactions.
When certain parts of a transaction are removed, this frees up space or capacity to add more transactions to the chain.
Who Implemented Segregated Witness?
SegWit was proposed by Bitcoin Core developer Pieter Wuille at the December 2015 Scaling Bitcoin conference in Hong Kong.
The Bitcoin Core team, consisting of various experienced developers, then implemented the change.
When was Segregated Witness Implemented?
SegWit was activated on the Bitcoin network on August 23, 2017, following its proposal in December 2015.
Where is Segregated Witness Used?
SegWit is used in the Bitcoin blockchain network, the largest and most popular cryptocurrency.
It is also used in other cryptocurrency networks such as Litecoin, which adopted the protocol before Bitcoin.
Why was Segregated Witness Implemented?
SegWit was implemented to solve the transaction malleability issue, where transaction IDs could be changed before they were confirmed.
By separating the transaction signatures from the input, this issue was resolved.
Additionally, SegWit effectively increases the block size limit and improves transaction speed, aiding in the scalability of Bitcoin.
How Does Segregated Witness Work?
SegWit works by segregating the witness, or signature data, from the transaction data.
This allows more transactions to fit within a block, effectively increasing the block size without changing the block size limit.
SegWit transactions are also backwards compatible, meaning nodes that have not upgraded to SegWit can still validate transactions.
This was achieved by making SegWit a soft fork, which only requires a majority of users to upgrade and is less disruptive to the network.
