Can you explain the process of implementing SegWit in a digital currency network?

1 answers

• Mar 24, 2022 · 3 years ago
  Segregated Witness (SegWit) is a protocol upgrade that was implemented in the Bitcoin network in 2017. It was designed to address the issue of transaction malleability and improve the scalability of the network. The process of implementing SegWit involved a soft fork, which means that it was backward-compatible and did not require all network participants to upgrade their software. Instead, it required a majority of miners to signal their support for SegWit. Once the signaling threshold was reached, SegWit was activated, and transactions could start utilizing the new protocol. SegWit works by separating the transaction data from the witness data, allowing for more efficient use of block space. This separation increases the transaction capacity of the network and enables the implementation of second-layer solutions, such as the Lightning Network, which further enhance scalability.
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