Bitcoins Segwit leaves behind even Bitcoin in terms of number of transactions.
Mar 27, 2018 Posted / 455 Views
The purpose was to solve malleability. It was also intended to mitigate a blockchain size limitation problem that reduces Bitcoin transaction speed. It does this by splitting the transaction into two segments, removing the unlocking signature ("witness" data) from the original portion and appending it as a separate structure at the end. The original section would continue to hold the sender and receiver data, and the new "witness" structure would contain scripts and signatures. The original data segment would be counted normally, but the "witness" segment would, in effect, be counted as a quarter of its real size.
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Because there is a limit to the block size (i.e 1 MB) of Bitcoins the number of transactions that can be processed is limited, so alternatively Bitcoin cash was introduced which has a bigger block size. This had its own implications for the users who were not having bigger block size couldn't audit those transactions. To find a solution to this problem Bitcoin Segwit was introduced wherein the block size was same as Bitcoin’s but the record was split into two parts. One being the transaction part and another being the signature part. so to audit a particular transaction not the whole record is sent but only the transaction part was sent so that it occupied lesser space on the block. The signature part of the transaction usually occupies 50% of the size. Hence by reducing the record size by practically 41% and also having faster transaction speed than Bitcoin users are very much influenced by this. Since it also accommodates the people who are not using the bigger/newer block size, Segwit is backward compatible.
According to BitMEX Research, 6.1 million SegWit transactions have taken place since the launch of rival Bitcoin Cash — 20.1% more than Bcash’s total number of transactions. However, Bitcoin Cash had a one-month head start over SegWit. When the timeframe is adjusted, SegWit actually has a 31.5% advantage over Bitcoin Cash. With improvements and advantages of Bitcoin segwit, people are undoubtedly shifting their sight towards it. Furthermore, BitMEX Research adds that “adoption of SegWit has continued to grow since August 2017, perhaps increasing in steps as large corporate entities switch to SegWit.”
In a nutshell, better versions of cryptocurrencies attract the masses like magnets. Bitcoin might be the pioneer in this field but certainly, it's not suitable for all circumstances as scientist keep improving them.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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