SegWit is a protocol upgrade for Bitcoin that was activated in August 2017. It stands for Segregated Witness and is designed to reduce transaction fees and increase the block size limit on the Bitcoin blockchain.
SegWit, short for Segregated Witness, is a protocol upgrade for the Bitcoin blockchain that was activated in August 2017. It is a soft fork, meaning that it is backward compatible with the existing Bitcoin protocol. SegWit was designed to address a number of issues with the Bitcoin network, including transaction malleability, scalability, and transaction fees.
Transaction malleability is a problem that occurs when a transaction is modified before it is confirmed on the blockchain. This can lead to double spending and other security issues. SegWit solves this problem by separating the signature data from the transaction data, making it impossible for the signature data to be modified.
SegWit also improves scalability by allowing more transactions to be stored in each block. This is done by reducing the size of each transaction, which in turn reduces the amount of data that needs to be stored in each block. This allows more transactions to be stored in each block, which increases the overall throughput of the network.
Finally, SegWit reduces transaction fees by allowing users to pay lower fees for transactions. This is done by allowing users to pay fees in a different currency, such as Bitcoin Cash, which is cheaper than Bitcoin. This allows users to pay lower fees for transactions, which in turn reduces the overall cost of using the Bitcoin network.
Overall, SegWit is an important protocol upgrade for the Bitcoin network. It solves a number of issues with the network, including transaction malleability, scalability, and transaction fees. It is a soft fork, meaning that it is backward compatible with the existing Bitcoin protocol. SegWit is an important step forward for the Bitcoin network and will help to ensure its long-term success.