Segwit Reading Assignment

Blockchain and Bitcoin 101
#3534
  1. What was a proposed alternative to Segwit?
    Answer: block size increase in the case of bitcoin cash
  2. What did Segwit solve more than just the scaling issue?
    Answer: malleability and lay down the ground work for lightening network scaling solutions
  3. How is Segwit and the Lightning network connected?
    Answer: Segwit enabled the layer two solutions which is the lightening network
  4. Are people, wallets and other services forced to use Segwit?
    Answer:no it is optional
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#3535

  1. What was a proposed alternative to Segwit? Increase the size of each block like what Bitcoin cash has done.

  2. What did Segwit solve more than just the scaling issue?
    Segwit fixes the malleability issue in order to prevent transaction ids being changed.

  3. How is Segwit and the Lightning network connected?
    Segwit is allowing the lightning network (layer 2 solution) to be built. Without segwit this would not be possible as the malleability issue would still exist and the risk would be high.

  4. Are people, wallets and other services forced to use Segwit?
    Segwit is not forced upon users as it is still compatible with the historic version of the protocol.

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#3536
  1. What was a proposed alternative so Segwit?

The alternative was to conduct a hard fork involving an update to increase the block size limit.

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

Segwit fixed the malleability issue which makes the whole network more secure with regard to data integrity of unconfirmed transactions. This is a key requirement for programs or features built on top of the original Bitcoin network that rely on the data integrity of unconfirmed transactions. This allows a wider adoption of Bitcoin and on top of that it makes the network more secure.

  1. How is Segwit and the Lightning network connected?

Segwit enabled the implementation of second layer protocols like the Lightning network. Put simple, parties using the Lightning network can create a mutual payment channel that is based on an unconfirmed transaction on the Bitcoin network, then the funds involved in this unconfirmed transaction are taken to the second layer (Lightning network payment channel) where the parties can conduct numerous transactions that are not recorded on the Bitcoin blockchain. Only when the parties close the second layer payment channel, the funds are redistributed to the parties according to the final balance of the second layer channel and this transaction settlement is recorded again on the Bitcoin blockchain. If Segwig had not resolved the malleability issue, the Lightning network would probably be a preferred target for a malleability attack due to its design (reliance on unconfirmed transactions).

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

Segwit is backward-compatible (soft fork), hence nobody is forced to use Segwit.

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#3537
  1. An increase to the block size.
  2. Transaction malleability, increase the amount of tx in a block, and open opportunity for second layer solutions.
  3. Segwit paved the road to make the second layer solution(lightning network) possible.
  4. No, segwit is not forced upon anyone or anything as it was a softfork and remains compatible with the previous protocol.
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#3538
  1. Increase of block size
  2. Reduction of transaction weight.
  3. Made second layer solution possible.
  4. No, it’s a soft fork.
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#3539
  1. What was a proposed alternative to Segwit?

Increasing block size

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

It solved the malleability issue

  1. How is Segwit and the Lightning network connected?

Because of segwit relying on unconfirmed TXs was made less risky, therefor layer 2 solutions became possible

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

No they are not, it’s optional since it was a soft fork (the changes made are still valid in the older consensus model).

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#3540

  1. What was a proposed alternative to Segwit?
    Another solution that was proposed was to simply increase the block size to fit more transactions.

  2. What did Segwit solve more than just the scaling issue?
    More than the scalability issue, segwit solved transaction malleability. This allowed for the signatures to be stored outside the block and prevented the transaction hash from being changed, allowing for the possibility of having additional features such as a layer two lightning network, smart contracts, another capacity boost and and anonymous top layer.

  3. How is Segwit and the Lightning network connected?
    Segwit allows features that rely on unconfirmed transactions less risk and easier to design.

  4. Are people, wallets and other services forced to use Segwit?
    No, since it is a softfork, others are not forced to use Segwit.

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#3541

1.Increase block size
2. a)fix Tx malleability;b)boost development of second layer protocol;c)make unconfirmed Tx less risky
3. Segwit boost the development of second layer protocol such as Lightening network
4.No,it’s soft fork

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#3542

  1. What was a proposed alternative to Segwit?
    Increasing the size of each bitcoin block.

  2. What did Segwit solve more than just the scaling issue?
    It fixed the transaction malleability issue (by removing the signature from the transaction), it allowed for the development of more complex features (features that relied on unconfirmed transactions) and smart contracts.

  3. How is Segwit and the Lightning network connected?
    Segwit allowed for the development of the lightning network as it relies on unconfirmed transactions. It made them less risky and easier to design.

  4. Are people, wallets and other services forced to use Segwit?
    No, as it will still work with the old system (soft fork) but it is probably profitable for a miner to use it as they can get more transaction fees as there are more transactions in each block.

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#3543

  1. What was the proposed alternative to Segwit? The popular alternative to Segwit was an increase in the block size to solve the transaction limit problem. Ultimately this alternative was rejected by the community.

  2. What did Segwit solve more that just the scaling issue? Segwit solved the problem of transaction malleability, where bad actors could change the signature contained in transaction inputs. This vulnerability led to blockchain attacks and theft. By removing the signatures from the transaction, this vulnerability was stopped.

  3. How is Segwit and the Lightnign nework connected? Segwit made it possible for the development of second layer protocols which made any feature that relied on unconfirmed transactions safer and easier to implement. The lightning network is such a protocol and it is designed to increase bitcoin transaction capacity.

  4. Are people, wallets, and other services forced to use Segwit? Not exactly. There might still be wallets and nodes that have not updated their software to support Segwit. But even if that is still true today, Segwit only resulted in a softfork. (Where previously valid transactions are no longer valid.) At the same time however, Segwit is backwards compatible with nodes that have not updated. All this means is that legacy nodes receive transaction blocks without the extended signature block while Segwit nodes will receive the base block and the extended signature block to validate transactions in full.

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#3544

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

  2. What did Segwit solve more than just the scaling issue?
    Transaction malleability and reduction in transaction fees

  3. How is Segwit and the Lightning network connected?
    The lightning network is a second layer of protocol that reduces transaction malleability

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

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#3545

1. What was a proposed alternative to Segwit?

The alternative to Segwit was to increase the block size limit, which was the main reason behind the development of Bitcoin Cash.

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

Segwit also fixed transaction malleability, where someone could change the transaction signature, and consequently the transaction ID, after it had already been sent. This allowed individuals to change the digital signature of the transaction without changing its content, so in theory they could change the signature and pretend the transaction was never received in the first place.

3. How is Segwit and the Lightning network connected?

Segwit paved the way for the development of the Lightning network, which is a second layer protocol that relies on unconfirmed transactions.

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

No, they can choose not to use Segwit but more and more users are updating to Segwit.

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#3546
  1. One alternative was to increase the size of the block from 1MB to 2MB
  2. Segwit also solved the issue of transaction malleability.
  3. Segwit supports the development of second layer protocols such as Lightning network which takes frequent, small transactions off chain, only settling on the bitcoin BC when the users are ready.
  4. No, it is a soft fork and is compatible with previous protocol state.
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#3547
  1. Proposed alternative to Segwit was increase block size limit like bitcoin cash.
  2. Segwit also solved transaction maliability.
  3. Segwit and lighting network connected by relying on unconfirmed TXs less risky.
  4. No, wallets and other services are not forced to use Segwit.
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#3548

A proposed alternative to Segwit was to increase the blocksize limit. This is now done in Bitcoin Cash for example.

Segwit solved also a security issue by removing the signature from the block so this could not be changed anymore (transaction mailability). This prevented a 2nd layer solutions.

Segwit enables second layer solutions such as the Lightning network on top of the blockchain.

No people, wallets an other services are not forced to use Segwit because it was a soft fork update. Although it is better to use it because of the scaling and security issue.

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#3549
  1. The other proposed solution was to increase blocksize
  2. Segwit solved both the malleability issue and the tx’s per block.
  3. they are connected in a few different similarities but I really feel the main connection the two have is in the fact that the lightning network is predicated on segwit’s code change. i mean they both are here to make the block chain quicker for tx’s and they both deal with the scaling issue, but the LN needed segwit for it to come alive.
  4. no, i mean i keep reading its because it’s a soft fork but really that just deals with the nodes and the protocol. I mean yes people, wallets, and other services create tx"s and segwit deals in tx’s but nobody is forcing anyone to use it. The soft fork still allows for the old ways to be used so,… nothing is forced… it just makes sense to use it. miners would probably like using it due to the fact they can get more tx’s into a block which means quite a bit more money in fees if their block is first and approved.
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#3550

  1. What was a proposed alternative to Segwit?
    Alternative to Segwit is to increasing the block size limit like bitcoin cash.

  2. What did Segwit solve more than just the scaling issue?
    SegWit remove the signature from the block transaction, so the transaction ID will not be changed, so reduce transaction malleability.

  3. How is Segwit and the Lightning network connected?
    SegWit supports the development of the lightning network, second layer protocols.

  4. Are people, wallets and other services forced to use Segwit?
    No, they can choose to add Segwit or not.

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#3551
  1. Increase the block size to 2MB.
  2. Transaction malleability.
  3. Segwit allows for upgrades like Lightning.
  4. No, it is a soft fork.
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#3552
  1. What was a proposed alternative to Segwit?

Increasing the block size limit to 2mB, which was the proposed Bitcoin Cash hard fork

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

tx malleability, paved the way for smart contract

  1. How is Segwit and the Lightning network connected?

Segwit introduces the signature block with a limit of 3MB which could be used for additional code and signatures. The lightning network is a layer on top of bitcoin, enabling fast and cheap transactions which can settle to the bitcoin blockchain.

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

Not until a majority of the network updates to allow segwit support.

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#3553

  1. What was a proposed alternative to Segwit?
    Enlarging block size, which would result in the hard fork (and did so with Bitcoin Cash)

  2. What did Segwit solve more than just the scaling issue?
    Because it allowed more options and security to build new features because txID couldn’t be changed with signature only.

  3. How is Segwit and the Lightning network connected?
    Due to Segwit implementation, Lightning network is built as side chain solution for small payments

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

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