Segwit Reading Assignment

Blockchain and Bitcoin 101
#2108

  1. Increasing the maximum allowed size of blocks.

  2. It removed the issue with “Transaction Malleability” by storing the signatures of a transaction separately, if someone changes the signature after the transaction, it will no longer change the transaction ID, the Hash.

  3. SegWit supports the development of second layer protocols, such as the lightning network. The malleability fix made any feature that relied on unconfirmed transactions less risky and easier to design.

  4. No they are not, it is a “Soft Fork update”.

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#2109
  1. What was a proposed alternative to Segwit?

An increase in the block size limit.

  1. What did Segwit solve more than just the scaling issue?

Segwit solves the problem of transaction malleability. Previously, it was possible for someone to alter a digital signature and change the transaction hash ID entirely. This meant the original transaction ID would vanish, and a recipient could deny they had received the transaction. With Segwit, the digital signature (witness) is kept separate from the other transaction details, and the transaction hash ID’s are generated without using digital signatures. Changing a digital signature can no longer cause the transaction ID to change.

  1. How is Segwit and the Lightning network connected?

Segwit has enabled a second layer of development, such as the Lightning network. Additional features such as this could not proceed while the transaction malleability problem remained. Segwit solved that issue,

  1. Are people, wallets and other services forced to use Segwit?

No, Segwit is a Soft Fork update. Backward compatibility means those nodes/miners which have not yet updated are still mining valid blocks.

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#2110
  1. What was a proposed alternative to Segwit?

Increasing the Blocksize which would result in a Hard Fork

  1. What did SegWit solve more than just the scaling issue?

It solved the Transaction Malleability which was an issue in the previous protocol, allowing to alter the signature and consequentially the tx id while the tx was unconfirmed, resulting in a new hash and ultimately in a new tx id. However, still with valid transactions in the block. SegWit split the block into a base tx block and into an extended block which carried the witness data (the signatures).

  1. How is Segwit and the Lightning network connected?

SegWit makes the whole concept of the lightning network valid, as it supports the individual payment channels that makes them less risky and easier to design.

  1. Are people, wallets and other services forced to use Segwit?

Due to SegWits backwards compatibility/soft fork, non segwit computer (legacy nodes) only receive the 1mb base transaction block without the extended block and are still considered valid. SegWit nodes receive both (base tx block and extended block) and can validate in full which is the reason why it is not forcing to use SegWit.

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#2111 
What was a proposed alternative to Segwit?
Implement a larger block size limit rather than implementing a new transaction structure

What did Segwit solve more than just the scaling issue?
It solved the issue of transaction hash manipulation by tampering with the signature.
With the signature out of transaction structure, this is no longer possible

How is Segwit and the Lightning network connected?
Segwit supports second layer protocols such as  Lightning network

Are people, wallets and other services forced to use Segwit?
No, Segwit is compatible with the previous protocol that includes the signature in the 
transaction structure
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#2112
  1. What was a proposed alternative to Segwit?
    Block size increase
  2. What did Segwit solve more than just the scaling issue?
    Transaction malleability
  3. How is Segwit and the Lightning network connected?
    Allows for second layer protocols
  4. Are people, wallets and other services forced to use Segwit?
    No
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#2113

  1. What was a proposed alternative to Segwit?
    Increasing blocksize, which Bitcoin Cash did use.

  2. What did Segwit solve more than just the scaling issue?
    Transaction malleability

  3. How is Segwit and the Lightning network connected?
    Segwit reduced the risk to protocols that rely on unconfirmed transactions which allows for lightning network to prioritise certain transactions and sideline others.

  4. Are people, wallets and other services forced to use Segwit
    no, although most services are adopting it

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#2114
  1. The alternative to Segwit was a proposition to increase the block size limit.

2.Besides scaling Segwit also resolved TX Malleability.
3. By removing signatures outside of the base transaction, second layer protocols could be implemented.
4. No, infact a hard fork formed as a result called Bitcoin Cash

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#2115
  1. A proposed alternative to Segwit was an increase to the block size limit of 1MB.
  2. Segwit solved more than just the scaling issue because it also addressed the problem of transaction malleability, which caused changes to transaction IDs when signature data changed.
  3. Segwit is connected to the Lightning network because it made it easier to develop code on top of the Bitcoin blockchain. This second layer, could handle small and frequent transaction on their own independent chain without needing confirmation from miners, and would only settle the transaction on the main Bitcoin block chain once a net transaction could be confirmed by the parties involved.
  4. No one is forced to use Segwit.
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#2116

You can also still use old style txs on Bitcoin as well. :slight_smile:

#2117

  1. Increasing the block size.

  2. Transaction malleability.

  3. Segwit allows for the development of second layer protocols, such as the lightning network. By fixing the tx malleability issue it made it easier and less risky to design.

  4. No Segwit can be seen as a soft fork and not everyone did adopt it and that was the reason for Bitcoin Cash’s introduction.

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#2118
  1. What was a proposed alternative to Segwit?
  • An alternative to Segwit that was also proposed was to simply increase the block size to accomodate for more transactions.
  1. What did Segwit solve more than just the scaling issue?
  • Aside from solving the scaling issue, Segwit also dealt with the transaction malleability issue which was what it was originally meant to address. In taking out the signatures from the transaction, it ensured that any changes made to the signatures would not affect the hash in the transaction and the transaction ID.
  1. How is Segwit and the Lightning network connected?
  • The advent of segwit and the fixing of the transaction malleability issue allowed the building of second layer solutions that would rely on unconfirmed transactions less risky.
  1. Are people, wallets and other services forced to use Segwit?
  • No, But it is highly encouraged to adopt segwit in order to scale Bitcoin and at the same time help make it more secure and more useful going forward.
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#2119

  1. What was a proposed alternative to Segwit?
    To increase the size of the block.

  2. What did Segwit solve more than just the scaling issue?
    The malleability - the possibility to change small thing in the tx ID.

  3. How is Segwit and the Lightning network connected?
    Another big step forward made possible by SegWit is that it supports the development of second layer protocols, such as the lightning network. The malleability fix made any feature that relied on unconfirmed transactions less risky and easier to design.

  4. Are people, wallets and other services forced to use Segwit?
    No

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#2120
  1. Increasing block siye this from 1 mB to up
  2. Segwit chcange maleability ID wich are easier applied on lightning network.
  3. Throught seconde layer solution.
  4. People, wallets and other services are not forced to use Segwit.
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#2121
  1. The proposed alternative to Segwit was increasing the block size to 2mB.
  2. SegWit allowed Tx times and fees to remain the same, as well as, preventing the necessity for hard forks and stale blocks due to the update. SegWit most importantly kept BTC decentralized by keeping mining operations as is.
  3. SegWit allowed BTC to development of the features, the lightning network takes frequent, small Tx’s off-chain, only settling on the blockchain when necessary.
  4. Those whom chose not to adopt SegWit have the opportunity to choose the hard fork update of the bitcoin network which branched off into Bitcoin Cash.
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#2122
  1. Increase block size from 1mb to 2mb, resulting in bitcoin cash.
    2.Segwit also solved transaction malleability
    3.Segwit supports the development of second layer protocols, like the lightning network.
  2. No it was a soft fork.
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#2123
  1. It was to increase the block
  2. It solved malleability issues.
  3. it was lightning network, but it just happens with SegWit too.
  4. No, it happens just in the right situations.
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#2124

You can also still use old style txs on Bitcoin. :slight_smile:

#2125
  1. What was a proposed alternative to Segwit?
    The other alternative was to grow the 1mb capacity to 2mb. That would’ve got other problem’s like involoving a hard fork or even just delaying the main problem.

2.What did Segwit solve more than just the scaling issue?
SegWit resolved 2 problematics : The storing issue 1mb to 1mb+ 4mb of “external storage” out of the block. Putting the id signatures out of the block. With doing that it also resolved the issue of Tx malleability, taking out the signature id out of the block the receiver won’t be able to hash it differently. ( thanks to correct me if i am wrong on this one)

3.How is Segwit and the Lightning network connected?
They are connected because by storing data out of the block we got 4mb extra to build on. The lightining network was built on those extra mb added thanks to SegWit.

4.Are people, wallets and other services forced to use Segwit?
No, because the old rules are still valid.

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#2126

What was a proposed alternative to Segwit?
The initial proposal was to increase the block size.

What did Segwit solve more than just the scaling issue?
Segwit removed transaction malleability.

How is Segwit and the Lightning network connected?
By solving the transaction malleability; this enable Lightning Network which is a 2nd layer protocol.

Are people, wallets and other services forced to use Segwit?
No.

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#2127
  1. The alternative was to increase the block size.
  2. A bug in the BTC blockchain (transaction malleability) was also solved in the Segwit implementation.
  3. Segwit supports 2nd layer protocols such as Lightning Network.
  4. No not yet.
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