Ever since cryptocurrency has become a worldwide phenomenon, people have been expressing much interest in gaining knowledge about all the terminologies that are an essential part of this new digital world. Besides this, they are much interested in getting updates of the crypto market by following the latest crypto news. Now you must be reading all about the important terms in the cryptocurrency, but today, we are going to tell you about SegWit and will let you add one more knowledge about the crypto term. As you can see, there are multiple cryptocurrencies on the market that adhere to prescribed rules as a guide in their functioning. All these rules are known as protocols. But how is it connected to SegWit? To know the answer, follow the blog until the end.
If you are a tech-savvy person, then you must be very well aware of the updating of computer programs. But do you know even the cryptocurrencies needs to be updated just like your computer programs? Whenever you discover a bug or any technical glitch in the program, then you aim to fix it. Any technical device, be it your computer or laptop, gives you an indication for updating. The same is the case with cryptocurrency, that too needs to be updated with the changes that are done on its protocol. An important fact about the SegWit, an update made in the context of Bitcoin protocol on the previous year.
What You Need To Know About SegWit
Every technology has background behind it. The same is about SegWit. This concept was proposed in 2015 at the Bitcoin conference by Peiter Wuille. This person is an experienced Bitcoin developer and co-founder of a software company called Blockstream. The prime objective of this software company is to provide security for financial services, digitally. Wuille explains the specific fact about the SegWit foundation. According to him, it was launched as a solution to overcome flaws detected in the Bitcoin protocol. Patches is a special term used for solutions to detect flaws in the development of software. Wuille emphasized on fixing the problem of transaction malleability. This is a dumpy way of expressing about stealing of Bitcoin from the users through small bits of information regarding the transaction.
Not All Agreed To SegWit
Ever since the Wuille’s idea of launching SegWit came through, it stirred a major argument in the Bitcoin community. But finally, the winds of the debate came to an end, and then on August 23, 2017, SegWit finally became active. In the same year, on May 10, Litecoin protocol too had been applied with the same patch. SegWit became a reliable solution in solving the problem of transaction malleability. It also played a prominent role in bringing positive changes in the Bitcoin protocol. But despite such an applauding role, SegWit still has to face criticism. Also, the changes made by it, have not been praised by all users in the Bitcoin network. The members of the community expressed disagreement with SegWit at such point, that they came up with an idea of bringing up their cryptocurrencies.
Now let us drive our attention to the pros and cons of SegWit.
As mentioned earlier, SegWit became a reliable solution in solving the problem of transaction malleability, so now it becomes important to know about SegWit advantages.
An interesting fact to know about Segwit is that it is a very easy and innovative solution to solve big problems in the Bitcoin protocol. The lighter Bitcoin blockchain is all because of SegWit. It enables the processing of the number of transactions without enhancing the complete size of the Bitcoin blockchain. The higher is the speed of transaction, the lower is the fees of transactions. A community must be prepared to accept the downward changes in Bitcoin transaction fees, which have been higher early. Bitcoin needs to solve the scalability issue if it wants to serve the network of millions of people.
SegWit is not appreciated by most of the miners. It is because of minimal fees dampening their profits, and also don’t like witness-data sidechain, that does not benefit them with any revenue. Besides this, Bitcoin wallets also are very lukewarm in supporting the changes of SegWit. Apart from it, many Bitcoin developers do not believe in SegWit claim of solving scalability issue due to its lesser reach. Another big problem that tells about SegWit disadvantage is the spawn of hard forks including Bitcoin Cash, which caused disagreements surrounding it.
A very important fact about SegWit is that it was founded by the co-founder of Blockstream, Pieter Wuille. This Bitcoin developer wanted to solve the major problem of transaction malleability. But this skilled person did more than expected and came up with a large discussion regarding the future of the Bitcoin platform. If you are abreast of crypto educational news, the debate on SegWit will remain continued in the Bitcoin community. According to some, SegWit appears to be a unique development that promises a better future for Bitcoin. But others see it as a temporary problem in solving major problems faced by the Bitcoin network. What’s your view on it?