Segregated Witness (SegWit)
Segregated Witness (SegWit) is an architectural change that was activated on August 2017 as a soft fork on the BitcoinThe term "Bitcoin" can either refer to Bitcoin the network, ... More network (it is backwards compatible with users who have not accepted the new rules). This change is designed to increase security and efficiency. SegWit splits transactions into two segments, and removes the unlocking signature (witness data) of transactions from the scriptSig (unlocking script) field of a transaction into a separate witness data structure included at the end of a transaction.
SegWit fixes transaction malleability – a weakness that would allow a malicious actor to modify (“malleate”) the “witness data” of a transaction before it is confirmed, in such a way that it changes the transaction IDA transaction is a record in the blockchain that records the... More, with an intended goal to defraud a sender into sending a second payment after the first did not appear to be confirmed. By moving the witness outside the transaction, the transaction hash used as an identifier no longer includes the witness data.
SegWit increases blockBlocks hold batches of valid transactions that are hashed an... More capacity (from 1MB to a max 4MB) since more transactions can now fit into a block after removing the witness data. As a result, transaction fees decrease and it is safer to implement payment channels such as the Lightning Network.