Date: 2017-07-19 09:55:57
What is Segwit?
Segregated Witness simply known as Segwit is an update for the bitcoin network that was designed to resolve issues arising on the blockchain especially the bitcoin scaling issue. SegWit was formulated by Dr. Pieter Wuille. This is a soft fork proposal (a change to the blockchain that is compatible with the older software) to fix the bitcoin scalability issue.
The bitcoin scalability problem is due to the limited 1 mb size of blocks on the blockchain and daily increase in the number of blockchain users and transactions carried out.
How does Segwit propose to fix bitcoin scalability?
It proposes to do this by increasing the block size limit to just less than 4 Mb by separating the witness from the transaction. The witness is the digital signature of every transaction. This information states the sender signature, the recipient’s signature and the amount of Bitcoin. This information takes up about 65% of the space on each block.
Once the witness is separated, this would increase the 1mb limit to a little less than 4mb.
The date speculated for the activation of Segwit is August 1st 2017.
As a Bitcoin user, what are your opinions on Segwit?