Segwit Reading Assignment

Blockchain and Bitcoin 101
#3194

What was a proposed alternative to Segwit?
The other proposal was to make the block sizes bigger. However that would result in a hard fork and in future may have to increase the block sizes again.

What did Segwit solve more than just the scaling issue?
Segwit took out the signature data from the block, and hence it solved the problem of transaction malleability

How is Segwit and the Lightning network connected?
Segwit support 2nd layer protocols. Lightning network can hence be developed on Segwit.

Are people, wallets and other services forced to use Segwit?
No.Segwit is a soft fork.

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#3195
  1. A proposed alternative was an increase to block size.
  2. It solves the transaction malleability, a lower fee and a second layer protocol.
  3. Trough second layer.
  4. No, it’s a soft fork.
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#3196

  1. What was a proposed alternative to Segwit?
    A. Block size increase

  2. What did Segwit solve more than just the scaling issue?
    A. Stopped the transaction malleability issue

  3. How is Segwit and the Lightning network connected?
    A. By being able to support the development of second layer protocols such as the lightning network

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

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#3197

1. What was a proposed alternative to Segwit?
A: Increasing the block size from its 1MB limit. Some miners adopted this approach, creating a hardfork split into the network (the Bitcoin Cash)

2. What did Segwit solve more than just the scaling issue?
A: By removing the signatures from the block, besides addressing the scalability (the signatures usually imply more data than the transaction) it also fixes the transaction malleability (making the network more secure)

3. How is Segwit and the Lightning network connected?
A: Lightning is a layer 2 protocol which greatly enhances bitcoin’s transaction capacity by taking frequent and small transactions off-chain, only settling on the bitcoin blockchain when the users are ready

4. Are people, wallets and other services forced to use Segwit?
A: No, since Segwit is a soft fork

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#3198
  1. A proposed alternative to Segwit was to increase the blocksize limit.
  2. Segwit solved transaction malleability as well as adding second layer solutions.
  3. Segwit allows for the lightning network as smaller transaction sizes by taking these more frequent, smaller transactions off chain.
  4. No, people are not currently forced to use Segwit as it is a soft fork.
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#3199

1- increasing the block size
2-transaction malleability was an issue as well. Once segwit solved this it gave secondary solutions more traction.
3- because the malleability issue is fixed it gives the lightening network the ability to build on bitcoin. allowing for off chain transactions and further scalability of bitcoin.
4- No the original bitcoin protocol is in tact as segwit was a soft fork and people are still able to access the base protocol.

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#3200

Q: What was a proposed alternative to Segwit?

A: It was increasing the block size. This ended up into a hard fork.

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

A: The malleability issue with the transactions. Separating the signature information outside the block made it less risky and more reliable for the users.

Q: How is Segwit and the Lightning network connected?

A: Segwit supports the developing of second layer protocols. In this case the lightning network is one of them.

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

A: No, because it is a soft fork. Old transactions can be used again after the soft fork.

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#3201
  1. What was a proposed alternative to Segwit?
  2. What did Segwit solve more than just the scaling issue?
  3. How is Segwit and the Lightning network connected?
  4. Are people, wallets and other services forced to use Segwit?

A.1. The proposed alternative to Segwit was BitcoinCash. BitcoinCash meant to implement larger block size limit of 8MB in contrast to 4MB solution presented by Segwit. Both attempts aimed to scale Bitcoin adoption by facilitating high-volume transactions quickly.

A.2. Segwit presented a solution that ended up solving two different issues (1) block size scalability and (2) transaction malleability.

Block size scalability became of concern as Tx fees increased and latency issues got worse given the growing demand for Bitcoin Blockchain use i.e. increasing adoption. The issues faced by the limit block size of 1MB were two folded—longer propagation time leading to increasing Stale Blocks.

Transaction malleability was a flaw in the Bitcoin code which allowed users to change the Tx Hash/Tx ID. This would in turn allow users to take advantage by lying that they did not receive a specific payment when in fact they did receive the money. Unfortunately the network was not able to verify the claim because a change has been made in the Tx Hash and there was no record of that attempt.

The Segwit solution was then able to increase the block size limit to 4MB by removing the signature data and store it outside the block.

Quick question: Although, changing Tx signatures did not affect the Tx content, what is the convenience of allowing signatures to be modified? Many thanks.

A.3. Segwit and the Lightning network connect through the second layer solution by facilitating micropayments through faster Tx at reduced costs. This propelled development on other features such as MAST, Schnorr signatures and TumbleBit.

A.4. Miners, Nodes, Wallets and other Bitcoin related products and services are not forced to use Segwit. They can opt to BitcoinCash. Despite the new Tx structure “Witness”, Segwit solutions have been updated by Trezor, Ledger, Electrum, Kraken and beyond. Segwit sought a softfork implementation rather then hardfork as means to keep the community together; by the writing of this assignment BTC marketcap, ₿18,653,637 vs BCH marketcap, ₿179,432. This means that BTC adoption continues growing exponentially in comparison to BCH, although BCH limit block size, 8MB in contrast to BTC limit block size, 4MB.

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#3202

  1. Increased blocksize.

  2. The transaction ID malleability problem.

  3. Segwit allows for layer2 solutions like lightning network.

  4. No.

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#3203
  1. What was a proposed alternative to Segwit?
    increase
  2. What did Segwit solve more than just the scaling issue?
    Segwit solves the transaction malleability preventing the capability to edit the transaction signature thus changing the hash of the block.
  3. How is Segwit and the Lightning network connected?
    The Lightning network is built on the blockchain and made possible by the malleability fix provided by Segwit.
  4. Are people, wallets and other services forced to use Segwit?
    No but more people, wallets and other services are embracing the upgrade.
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#3204

1.) Increasing the size of blocks.
2.) It also solved the issue of tx malleability.
3.) Lightning Network is a second layer protocol, which is easier to develop with the support of Segwit.
4.) No, they aren’t.

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#3205

  1. What was a proposed alternative to Segwit?
    Increasing the Blocksize --> BitcoinCash is a result of the split of the community, that didn’t wanna go with the soft fork.

  2. What did Segwit solve more than just the scaling issue?
    It solved TX ID malleability by removing the signature form the TX ID

  3. How is Segwit and the Lightning network connected?
    Lightning network is a layer-2 solution to solve scalability issues. Taking small and frequent transactions off chain requires to rely on unconfirmed transactions. Therefore Segwit reduced the risk and increased the speed for such transactions.

  4. Are people, wallets and other services forced to use Segwit?
    No, instead the community decided to do a hard fork.

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#3206
  1. What was a proposed alternative to Segwit?
    Block size increase to 2mB.
  2. What did Segwit solve more than just the scaling issue?
    Transaction malleability.
  3. How is Segwit and the Lightning network connected?
    Segwit support 2nd layer solutions, like LN.
  4. Are people, wallets and other services forced to use Segwit?
    No.
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#3207

I’m not aware of any conveniences. It was just a flaw in the protocol that was overlooked in the early years of Bitcoin. :slight_smile:

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#3208

You can also still make old style transactions on Bitcoin as well. :slight_smile:

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#3209
  1. Increasing the block size limit.
  2. transaction malleability
  3. Segwit made any feature, which relied on unconfirmed transactions, less risky and easier to develop.
  4. No, it was a soft fork. Some wallets and other services gradually adopted it.
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#3210
  1. Increase block limit size to 2mb.
  2. Malleability issue where people could change the TX ID by changing the signature to trick people into double payments.
  3. Segwit supports lightning network
  4. No as it’s a soft fork so it’s not forced upon the network.
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#3211

  1. What was a proposed alternative to Segwit?
    to enlarge the block

  2. What did Segwit solve more than just the scaling issue?
    it solved the malleability issue by taking the sigature off the block.

  3. How is Segwit and the Lightning network connected?
    SegWit help support the development of second layer protocols, such as the lightning network.

  4. Are people, wallets and other services forced to use Segwit?
    it’s a soft fork and no everyone should embrace it.

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#3212

What was a proposed alternative to Segwit?
To Increase the block size.

What did Segwit solve more than just the scaling issue?
Fix the malleability problem and be able to process transactions more fast

How is Segwit and the Lightning network connected?
a layer 2 payment protocol that operates on top of a blockchain-based cryptocurrency (like bitcoin).

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

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#3213
  • What was a proposed alternative to Segwit?
    The alternative to Segwit was to upgrade the transaction size to be greater than 1MB
  • What did Segwit solve more than just the scaling issue?
    Transaction Malleability- preventing someone from making changes to a transaction which would change the transactions id/hash but would still be considered the same transaction just a different TX ID
  • How is Segwit and the Lightning network connected?
    Segwit update allowed for second layer protocol such as lightning network.
  • Are people, wallets and other services forced to use Segwit?
    Segwit is not a mandatory update
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