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What is Bitcoin SegWit Scalability?


First, let me explain what scalability is. Scalability is the ability of a network to process huge amount of transactions without transaction speeds going down. If a network is scalable, it will be able to process a transaction as fast, or even faster, as it gets bigger. Unfortunately, most cryptocurrencies process transaction slower the bigger they get.

Cryptocurrencies have a scalability problem because a transaction is processed by consensus. As mentioned earlier, more than half the nodes on the Bitcoin network need to agree that a transaction is valid before it can be added to the blockchain. The more nodes there are on the network, the longer it takes to reach an agreement or consensus.

The bitcoin community has been debating different ways to scale the network for a long time. The problem gets worse as the platform becomes more popular so time is running out to find a solution.

When Pieter Wuille created Bitcoin SegWit he accidentally improved the network’s scalability as well. Witness data used to take up 65% of every bitcoin block. By removing witness data, SegWit bitcoin blocks now have room for much more transaction information.

Each block now has a set block weight which is capped at 4MB. A block’s weight is a combination of the 1MB of information stored on the main blockchain and the witness data stored on a side chain. A segregated witness allows the network to process more transaction without changing the overall bitcoin blockchain size.

So, if someone asks you, “what is SegWit scalability?” you can tell them that it’s a way of processing more transaction on the bitcoin network. It makes the network lighter by removing witness data from transaction without affecting the bitcoin blockchain size.

What is the difference between Legacy and SegWit?


The most visible difference between Legacy and SegWit addresses are the address formats.
There are three address types:
Legacy (P2PKH): addresses start with a 1.
• Nested SegWit (P2SH): addresses start with a 3.
• Native SegWit (bech32): addresses start with bc1


All three addresses can be used to send and receive bitcoin. So what’s the difference? Well for starters, not all wallets support all three address types. Legacy addresses are the original BTC addresses. You can expect all wallets to support sending and receiving to Legacy addresses.

However, not every wallet or service has upgraded to support the new SegWit address format and therefore, some wallets can only send to Legacy addresses. Luckily, if someone wants to send you BTC from a SegWit address, your Legacy address will be able to receive it just fine.

How to find out is your wallet address is Legacy or SegWit?


If you have the Legacy address then it means that you will be using addresses starting from 1, SegWit address means that you will be using addresses starting from 3 or bc1 (one is for P2SH nested SegWit and the other is for native SegWit). Note that 3 addresses are for P2SH addresses in general and are not just for SegWit. Bc1 addresses are for SegWit specifically but not all wallets support it yet.

Benefit of SegWit


Hi, and Good Morning everyone, today I want to share with you guys about Benefits of SegWit.

Segwit allowed for the data size of a block on the Bitcoin blockchain to increase from 1MB to 4MB. This increase in block size has allowed for an increase in the frequency of transactions on the network.

An additional benefit of separating the digital signature from the transaction data and reducing the data size of the transaction is that more transaction can fit in a block.

So not only are the block size larger, but more transactions can take place in the block, thus allowing for an even higher increase in transaction frequency.

Additionally, SegWit achieved its goal of fixing the malleability problem on bitcoin. No longer can users alter details of a transaction ID.

This allowed for an increase in development work on features that can enable the execution of smart contracts, which have an increasing value due to their benefits to many industries in the broader digital marketplace.

What is SegWit: The Cons?


You all already know What is SegWit: The Pros? This time you may know What is SegWit: The Cons?
 

  •  It isn’t being used by enough nodes. A lot of miners don’t like SegWit. Lower fees affect their profits and they also don’t appreciate having to support the witness – data side chain which doesn’t provide any fee revenue at all.

 

  • It’s a short – term solution to long – term problems. Some Bitcoin developers have complained that the SegWit protocol doesn’t go far enough to solve the scalability problem. They claim that only major changes to the Bitcoin blockchain size and the way transactions are processed will help the platform to scale in the future.

 

  •  SegWit has caused divisions in the Bitcoin community. The disagreements surrounding SegWit have caused several hard forks. The most well-known of these is Bitcoin Cash (BCH).