Segwit Reading Assignment

Blockchain and Bitcoin 101
#2450
  1. The proposed alternative to Segwit was to increase the 1 Mb size limit of each block to accommodate more space for storing transaction data. However, implementing this alternative would only create more problems because of the ongoing growth in bitcoin transactions.
  2. Segwit also managed to solve the problem of transaction malleability. This problem occurs when the unlocking code (signatures) is modified to change the TXID (an output hash) of a transaction. A TXID can be changed because it is hashed by taking inputs such as transaction data and unlocking code (signatures). So if the unlocking code is modified, the output hash value will be completely different, generating a new TXID. Segwit prevented this change by moving all the unlocking code at the end of the transaction data that is an area called the witness.
  3. Segwit enabled the development of second layer protocols by fixing the issue of malleability. This made features that relied on unconfirmed transactions less risky and easier to implement. One example of a second layer protocol is the lightning network. The lightning network protocol improves the bitcoin transaction speeds along with fewer transaction fees, and increasing the number of confirmations.
  4. No, because Segwit is a soft fork protocol update that is backward compatible with older addresses and transactions.
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#2451

  1. Bitcoin cash with a larger block size limit.

  2. SegWit fixed transaction malleability by removing the signature information (otherwise known as the “witness” information) and storing it outside the base transaction block.

  3. SegWit supports the development of second layer protocols, such as the lightning network. The lightning network will further boost bitcoin’s transaction capacity by taking frequent, small transactions off-chain, only settling on the bitcoin blockchain when the users are ready.

  4. No. As more wallets embrace the upgrade, the percentage of transactions that use the SegWit structure will increase, and bitcoin fees should drop as blocks contain a greater number of transactions.

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#2452
  1. Increase the Block size.
  2. Transaction Malleability.
    3.Segwit allowed second layer protocol such as Lightning network which handles small frequent charges off chain and settling when users are ready.
  3. No since it is a soft fork, it is not forced.
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#2453

The proposed alternative was to increase the size of the block. This alternative became the underlying structure of bitcoin cash.

Segwit also solved the problem of transaction malleability.

The segment update allowed the implementation of the lightning network to be easier. The lightning network is basically a network where nodes can perform transactions off the chain and then update the chain when ready. Segwit allowed off-chain transactions to be more secure.

No. Segwit resulted in a softfork which makes it backwards compatible with the previous state of the blockchain. Nodes can still use their wallets and transactions can still be made.

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#2454

A blocksize increase

#2455

The mallability issue

#2456

How is Segwit and the Lightning network connected

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

Lightening is built on top of Segwit, making it possible to do more and safer transactions using less space on the blockchain. Since this was a soft fork, no one is forced to use it, but can if they agree to

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#2457

  1. To increase the block size from 1 mB to 2 mB or bigger, like the case of Bitcoin cash increasing block size to 4 mB producing a hard fork.

  2. It solved the problem of malleability as well, separating the tx signature out from the tx information. In this way it is not possible to modify the tx signature making it more secure.

  3. Segwitt opens the possibility of second layer protocol development such as Lightning network.

  4. No, because it is a soft fork so the older protocol is still compatible with the network.

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#2458
  1. What was a proposed alternative to Segwit?
  • Implementing a larger block size limit rather than rely on a new transaction structure. This resulted in the creation of BTC cash, A Hard Fork.
  1. What did Segwit solve more than just the scaling issue?

-A bug in the BTC code, Transaction malleability. Fixed this bug by removing the signature information and storing it outside the base transaction block. With that, signatures and scripts can be changed without affecting the transaction ID.

  1. How is Segwit and the Lightning network connected?

-Segwit supports the development of second layer protocols… The lightning network. The lightning network will boost BTC transaction capacity by taking small transactions off the chain.

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

-No it is a soft fork and still compatible with the old protocols.

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#2459
  1. What was a proposed alternative to Segwit?
    A: the proposed alternative was to increase the block size limit.
  2. What did Segwit solve more than just the scaling issue?
    A: it also solved the problem of transaction malleability and also made it possible to make second layer applications like smart contracts on top of the bitcoin protocol
  3. How is Segwit and the Lightning network connected?
    A; segwit allowed features that relied on unconfirmed transactions to be less risky because it fixed the transaction malleability problem.
  4. Are people, wallets and other services forced to use Segwit?
    A: No because segwit was a soft fork and transactions that still include the signature can still be accepted
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#2460

Segwit Reading Assignment - Answers

  1. What was a proposed alternative to Segwit?
    • Increase block size from 1mB to 2mB

  2. What did Segwit solve more than just the scaling issue?
    • Transaction malleability, by removing signature data from the transaction hash
    • Enables second-layer protocols and smart contracts by allowing features that rely on unconfirmed transactions less risky and easier to design

  3. How is Segwit and the Lightning network connected?
    • Segwit enabled the Lightning network (second-layer protocol) by allowing for taking frequent, small transactions off-chain, to be settled on the bitcoin blockchain when participants are ready

  4. Are people, wallets and other services forced to use Segwit?
    • No, Segwit is a soft fork. Implementation has been integrated over time and allows for transactions to be processed with or without Segwit, but full network transitioning to Segwit. Miners and nodes can also continue without Segwit, but with greater occurrence of accepting invalid blocks. For those who outright did not want to use Segwit, they forked from Bitcoin and created Bitcoin Cash

blockchain.Ronin

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#2461
  1. Increasing the mB size of each block.
  2. Transaction malleability
  3. Segwit made 2nd layer solutions possible
  4. No, it was a soft fork, this is still compatible with old protocol.
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#2462
  1. The proposed alternative was to increase block size to 2MB.
  2. The other major solution segwit made was tx malleability preventing txs from being modified by removing the signatures and instead storing it outside the transaction block. This makes the network more secure.
  3. The lightning network is connected through 2nd layer protocols made possible by segwit. This is adopted will increase bitcion tx capacity.
  4. No. Some wallets still do not support segwit and those that do it is optional.
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#2463

Segwit was a bit of a special soft fork, because blocks will be valid on both nodes so outdated miners will continue to be able to mine blocks even if they contain segwit txs. They are also valid on old nodes, its only that new nodes interpret these transactions differently.
The difference is in transactions itself so wallets need to support it, its not that critical for nodes and I think most nodes by now have updated their sw. :slight_smile:

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#2464

  1. An increase of the block size.

  2. TX malleability that allows for layer protocols such as lightning work.

  3. Segwit created the possibility for Lightning network within his update.

  4. No, old addresses and tx can still be used.

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#2465

Thanks for the extra info, there’s so much to learn and so many nuances. Appreciate the support!

blockchain.Ronin

#2466
  1. a proposed alternative prior to the adoption of Segwit was a hard fork increasing the block size from 1MB to 2MB. Those opposed to segwit pursued the alternative and formed Bitcoin Cash.
  2. segwit allows for transaction malleability, storing the signature data outside the block, allowing for more data to be stored in each block. the result smaller block weight allowing more tx’s to be stored per block, lower tx fees, and a gateway to allow layer 2 scalability without overwhelming the network.
  3. by reducing the block weight, segwit allows the network to scale layer 2 solutions (lightning) using relative computing power. essentially, without altering the size of the block, segwit allows the network to achieve greater functionality, process a larger quantity of tx’s without requiring more processing power - efficiency is improved without making core changes to the protocol.
  4. being that segwit is a soft fork it is not a forced integration, however segwit is gaining greater adoption over time.
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#2467

Reading Assignment:

Q1: What was a proposed alternative to Segwit?

A: A proposed alternative to Segwit was Bitcoin Cash which chose to implement a larger block size limit rather than rely on a new transaction structure.

Q2: What did Segwit solve more than just the scaling issue?

A: Segwit also solved a bug in bitcoins code called ‘transaction malleability’. This flaw allowed anyone to change small details that modified the transaction id ( and subsequent hash) but not the content.

Q3: How is Segwit and the Lightning network connected?

A: Segwit and the Lightning network are connected through the ability of segwit to support second layer protocols such as the lightning network which further boosts bitcoin’s transaction capacity by taking frequent, small transactions off-chain, only settling on the bitcoin blockchain when the users are ready.

Q4: Are people, wallets and other services forced to use Segwit?

A: People, wallets and other services are not forced to use segwit.

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#2468
  1. What was a proposed alternative to Segwit?
    Make the blocks bigger creating a hard fork
  2. What did Segwit solve more than just the scaling issue?
    The transacction malleability and room for a fast second layer like lightning.
  3. How is Segwit and the Lightning network connected?
    Segwit makes second layer possible
  4. Are people, wallets and other services forced to use Segwit?
    No. Old transactions can be used.
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#2469

  1. To fix the issue of blocks being capped @ 1mb thus decreasing the adaptation of BTC

  2. It also fixed the issue of Malleability - where one could change the signature but not the contents resulting in possible double spending.

  3. Segwit allowed for Lightning network by allowing for second layer protocols

  4. I believe at the time of this post, it is fully adopted…i think…

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